24 C.F.R. § 982.454
§ 982.454 Termination of HAP contract: Insufficient funding. (24 CFR Part 982)
Operative Text
The PHA may terminate the HAP contract if the PHA determines, in accordance with HUD requirements, that funding under the consolidated ACC is insufficient to support continued assistance for families in the program.
Under 24 CFR Part 982 § 982.454, a Public Housing Authority (PHA) is permitted—but not required—to end a Housing Assistance Payments (HAP) contract when it concludes, following HUD guidelines, that the funding it receives under its consolidated Annual Contributions Contract is no longer adequate to sustain assistance for all participating families. This rule establishes a funding-based exit mechanism for PHAs, distinct from terminations tied to landlord or tenant conduct. The provision does not specify what happens to affected families automatically, making it a significant administrative trigger with downstream consequences for housing assistance.
Plain English — not legal advice.
Property owners with units under HAP contracts should be aware that § 982.454 gives the PHA authority to terminate a HAP contract due to insufficient funding, a circumstance entirely outside the landlord's control. Operators who stay in regular communication with their local PHA and monitor contract renewal notices are generally better positioned to anticipate potential funding-related disruptions. Maintaining documentation of all HAP contract correspondence can be useful if questions arise about the timing or basis of a termination under this provision.
General guidance for property managers — not legal advice for your specific situation. Consult an attorney for advice on your case.
Under § 982.454, a PHA may end the HAP contract covering your unit due to funding shortfalls, which could affect the housing assistance you currently receive. Tenants who receive notice of a HAP contract termination on these grounds may want to contact their local PHA to ask about available options, waiting lists, or any transition assistance that may apply. Tenant-rights organizations and local legal aid offices can help explain what protections or remedies may be available when assistance is disrupted under this provision.
General guidance for tenants — not legal advice for your specific situation. Consult a tenant-rights organization or attorney for advice on your case.
Generated September 3, 2026 — auto-generated, not yet human-reviewed. See /transparency for methodology.
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