HUD Handbook 4350.3 § 8-5
Key Requirements: When Assistance Must Be Terminated (HUD Occupancy Handbook 4350.3 REV-1 CHG-4)
Operative Text
An owner must terminate a tenant’s assistance in the following circumstances:
A. A tenant fails to provide required information at the time of recertification, including
changes in family composition, or changes in income or social security numbers for
new *household* members.
B. A tenant fails to sign/submit required consent and verification forms (form HUD-
9887 and form HUD-9887-A).
1. Form HUD-9887, Notice and Consent for the Release of Information to
HUD and to a PHA permits HUD to obtain wage and claim information from
State Wage Information Collection Agencies (SWICAs), current tax
information from the Internal Revenue Service (IRS), and wages and
unemployment compensation information from the Social Security
Administration (SSA) *and the Department of Health and Human Services’
(HSS’) National Directory of New Hires (NDNH).*
2. Form HUD-9887-A, Applicant’s/Tenant’s Consent to the Release of
Information – Verification by Owners of Information Supplied by Individuals
Who Apply for Housing Assistance allows an owner to obtain and verify
information about income, assets, and allowances for items such as child
care and medical expenses, which is needed to determine the amount of
rent a tenant must pay.
C. An annual or interim recertification determines that the tenant has an increased
ability to pay the full contract rent.
D. A tenant fails to move to a different-sized unit within 30 days after the owner
notifies him/her that the unit of the required size is available. *As required by the
HUD lease,* if the tenant remains in the same unit, the tenant must pay the market
rent, full contract rent, or 110% of the BMIR rent.
*NOTE: When assistance is terminated for a tenant with more than one form of
subsidy, the tenant must pay the market rent, full contract rent, or 110% of BMIR
rent. For example, if a tenant resides in a Section 236 property and receives
Section 8 assistance, the tenant would pay *the full Section 8 contract rent if his or
her assistance were terminated unless there is an eligible in-place Section 236
tenant or a vacant unit the Section 8 can be transferred to.*
E. A tenant has begun receiving assistance, but the owner is unable to establish
citizenship or eligible immigration status for any family member from the
information provided by the tenant and determines that the tenant does not meet
the citizenship requirement. (See Chapters 3, 4, and 7 for other citizenship and
eligible immigration status requirements. Restriction on assistance to noncitizens
is addressed in paragraph 3-12, denial of assistance is addressed in paragraph 4-
31, and changes in status are addressed in paragraph 7-11.)
The process for owners to verify and establish a tenant’s eligible immigration status
can be lengthy. Sometimes a tenant begins receiving assistance before the owner
establishes citizenship or eligible immigration status; this happens when the owner
encounters delays in verifying the information provided by the tenant. If the owner
then determines that the tenant does not meet the requirement for citizenship or
eligible immigration status, the assistance must be terminated. Refer to paragraph
3-12 K for further guidance.
NOTE: This requirement does not apply to the following programs covered by this
handbook, Section 202 PRAC, Section 811 PRAC, Section 202 PAC and Section
221(d)(3) BMIR..
F. A student enrolled at an institution of higher education does not meet the eligibility
requirements for assistance. (See Chapter 3, paragraph 3-13.)
G. REMINDER: Actions to terminate assistance must be based only on a change in
the tenant’s eligibility for assistance or a tenant’s failure to fulfill specific
responsibilities under program requirements. Owners must not take action to
terminate assistance based on other factors.
8-6 Procedures for Terminating or Reinstating Assistance
To avoid the potential for discrimination, it is important for owners to ensure that the
requirements and procedures described below are applied consistently to all tenants.
A. Terminating Assistance
1. When terminating a tenant’s assistance, the owner increases the tenant’s
rent to market rent (or contract rent) and, where applicable, makes the
assistance available to another tenant.
2. When terminating assistance, an owner must provide proper notice to the
tenant of the increase in the tenant’s rent.
REMINDER: When provided to a tenant with a disability, this notice must
be in a form accessible to the tenant (e.g., in Braille or audio form for a
tenant with a vision impairment).
3. Written notice should include:
a. The specific date the assistance will terminate;
b. The reason(s) for terminating assistance;
c. The amount of rent the tenant will be required to pay;
d. Notification that if the tenant fails to pay the increased rent, the
owner may terminate tenancy and seek to enforce the termination in
court; and
e. The tenant has a right to request, within 10 calendar days from the
date of the notice, a meeting with the owner to discuss the proposed
termination of assistance.
4. The notice should be served by:
a. Sending a letter by first class mail, properly stamped and addressed
and including a return address, to the tenant at the unit address;
and
b. Delivering a copy of the notice to any adult person answering the
door at the unit. If no adult answers the door, the person serving
the notice may place it under or through the door, or affix it to the
door.
5. The date on which the notice is deemed received by the tenant is the later
of:
a. The date the first class letter is mailed; or
b. The date the notice is properly given.
6. Service of the notice is deemed effective once the notice has been both
mailed and hand delivered.
B. Reinstating Assistance
An owner may reinstate a tenant’s terminated assistance if:
1. The original termination of assistance was due to:
a. A tenant’s failure to recertify, or
b. A tenant’s increased ability to pay;
2. The original termination of assistance was not due to fraud;
3. The tenant is eligible for assistance (based on the income and rent
calculation, the tenant would pay less than market rent);
4. The tenant submits the required information; and
5. Assistance is available for the unit.HUD Handbook 4350.3 REV-1 CHG-4 § 8-5 identifies specific circumstances under which a property owner participating in HUD-assisted housing programs is required—not merely permitted—to end a tenant's rental assistance. These circumstances include a tenant's failure to complete recertification, refusal to sign required consent forms (HUD-9887 and HUD-9887-A), a demonstrated increased ability to pay full rent, failure to transfer to an appropriately sized unit, unresolved citizenship or eligible immigration status, and student ineligibility. When assistance ends, the tenant's rent rises to market or contract rent, and the owner must follow a defined notice and meeting process before the change takes effect. Assistance may later be reinstated under specific conditions, provided the original termination was not related to fraud.
Plain English — not legal advice.
Under HUD Handbook 4350.3 REV-1 CHG-4 § 8-5, compliant operators maintain consistent, documented recertification processes that track whether tenants have submitted all required forms—including HUD-9887 and HUD-9887-A—and whether household composition, income, or eligibility status has changed. When a mandatory termination trigger is identified, operators issue written notice that specifies the termination date, the reason, the new rent amount, and the tenant's right to request a meeting within 10 calendar days, and they serve that notice by both first-class mail and hand delivery. Operators apply these procedures uniformly across all tenants to reduce fair-housing risk, and they document each step in the tenant file in case reinstatement or a dispute arises later.
General guidance for property managers — not legal advice for your specific situation. Consult an attorney for advice on your case.
HUD Handbook 4350.3 REV-1 CHG-4 § 8-5 establishes that your rental assistance can only be terminated for specific, program-defined reasons—such as missing recertification deadlines, not signing required consent forms, or a change in eligibility—and not for arbitrary or discriminatory reasons. If you receive a termination notice, the provision gives you the right to request a meeting with the owner within 10 calendar days of the notice date to discuss the proposed action. Tenants who believe a termination was improper may raise the issue at that meeting, contact a local HUD office or tenant-rights organization for guidance, or explore whether reinstatement is available if the original termination was not fraud-related.
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.
Effective Timeline
References Out
No outbound references recorded yet for this provision.
References In
No inbound references recorded yet for this provision.