HUD Handbook 4350.3 § 8-4
Applicability (HUD Occupancy Handbook 4350.3 REV-1 CHG-4)
Operative Text
A. Termination of assistance is not applicable to Section 202 PRAC and Section 811
PRAC properties.
B An owner’s authority to remove or terminate assistance is established by the HUD-
required lease provision entitled “Removal of Subsidy.”Under HUD Handbook 4350.3 REV-1 CHG-4 § 8-4, the rules governing termination of assistance do not apply to properties operating under Section 202 PRAC or Section 811 PRAC programs. For all other covered properties, an owner's ability to remove or end a tenant's rental assistance is not a freestanding power but is instead grounded in a specific HUD-mandated lease clause called 'Removal of Subsidy.' This means the lease itself — not the owner's independent discretion — is the governing instrument for any such action.
Plain English — not legal advice.
Owners and managers subject to HUD Handbook 4350.3 REV-1 CHG-4 § 8-4 should be aware that the authority to remove or terminate a resident's assistance flows directly from the HUD-required 'Removal of Subsidy' lease provision, not from general management discretion. Compliant operators ensure that this clause is properly included in every applicable lease and that any assistance-removal action is grounded in and consistent with that specific provision. Operators of Section 202 PRAC and Section 811 PRAC properties should note that this termination-of-assistance framework does not apply to their programs at all.
General guidance for property managers — not legal advice for your specific situation. Consult an attorney for advice on your case.
Under HUD Handbook 4350.3 REV-1 CHG-4 § 8-4, a tenant's rental assistance can only be removed or terminated through the authority granted by the HUD-required 'Removal of Subsidy' lease clause — meaning tenants can look to their own lease to understand the basis and limits of any such action. Residents of Section 202 PRAC or Section 811 PRAC properties have an additional protection: this termination-of-assistance framework does not apply to their housing at all. Tenants who believe an assistance removal was not properly grounded in the lease provision may consider raising this as a concern with the U.S. Department of Housing and Urban Development or consulting a tenant-rights organization familiar with HUD-assisted housing.
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 25, 2026 — auto-generated, not yet human-reviewed. See /transparency for methodology.
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