When the new HOME 2025 Rule was released, a significant change had been proposed that many operators checked first. It had to do with HOME eviction notice requirements. Did the proposed change to a 60-day notice stay in the Final rule?

The original proposal...and what HUD was thinking. In the proposed version of the HOME regulation, it had been proposed that owners provide 60 days’ notice to almost all lease terminations instead of 30 days’ notice required by the HOME statute. HUD had noticed that several program regulations now require written notification of at least 30 days before lease termination resulting from nonpayment of rent. It also noted that the programs with new 30-day notice rules do not have the same minimum 30-day statutory notice period that HOME already has. Also, the other HUD 30-day notice rules describe termination of tenancy for a specific ground, nonpayment of rent, and not the HOME law, which includes termination for any good cause. Recognizing the challenges of obtaining new affordable housing and to reduce the probability that a tenant will become homeless, the proposed HOME rule increased the required notice period to 60 days. HUD stated that it believed this would provide HOME tenants with sufficient time to locate and secure a new rental unit. It was theorized that this increased notice period above the statutory minimum would also allow tenants additional time to object to or cure violations to reverse the termination. HUD believed at that point that the public interest in avoiding increased homelessness outweighed the risk that this proposed change to increase the notice period would disincentivize developers and owners from participating in the HOME program. (§ 92.253(d)(1)(ii) and (42 U.S.C. 12755(b))

Feedback from the industry...and why. Comments on the proposed HOME Rule from the industry showed that many involved parties believed that this would be a significant disincentive on the private sector side to HOME participation. According to HUD "the Department received overwhelmingly negative comments from the public on the negative effects of requiring a longer notice period before termination or refusal to renew. Some commenters explained the variation of eviction timeframes across the country. Others explained how adding an additional 30 days to the notice period impacted the average eviction process and the average owner in their jurisdiction. Organizations that represented owners and affordable housing managers described how these changes negatively impact the financial feasibility of current and future HOME projects." HUD also relayed that it was commented that "statistically the longer someone is permitted to stay in a unit without paying rent, the longer they will stay without paying rent. The commenter said that it is more likely that the month's rent will be just another month's rent that goes unpaid to the landlord and decreases the cash available for that landlord to pay its bills or maintain the property. The commenter also stated that anything longer than a 30-day eviction notice would not benefit tenants because it could increase exposure to harmful conditions and increase owners' scrutiny of tenants' background records relative to past-owed amounts to landlords, bad landlord references, and credit issues." This has long-term consequences on a family's credit and landlord history, decreasing their chances of securing housing, both short- and long-term. Most did not believe that increasing the time allowed should be assumed to be in the family's interest, or the owner's. Other HUD programs may see the wisdom in applying provisions similar to the existing statutory HOME 30-day rule, but it did not necessarily follow that the HOME regulation should now go beyond the statutory requirement to exceed other 30-day-notice programs. Finally, unlike other HUD programs, there is no rental subsidy provided to the owner in many HOME units, or vacancy or damage loss claims available under HOME, to help mitigate owner losses.

Final answer...the old rule stands! HUD carefully considered all public comments and what it had done in other programs and the effort to make a consistent 30 day notice standard. On the whole, when HUD considered the potential negative ramifications and how the extension to 60 days was inconsistent with other HUD efforts, the proposal to move the notice requirement to 60 days was withdrawn. The 30-day notice requirement built into HOME stands as it has for many years. 

Although we believe the proposal was well-intended, the final decision here is better for the HOME program, owners/agents, and, importantly, residents of HOME properties. 

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