Rule2025-22157
Housing Opportunity Through Modernization Act of 2016-Housing Choice Voucher (HCV) and Project-Based Voucher Implementation; Additional Streamlining Changes; Technical Amendments
Primary source
Metadata and text below are from the Federal Register, a public-domain U.S. government work. Always verify the official published version before relying on it for any legal matter.
Published
December 8, 2025
Effective
January 7, 2026
Issuing agencies
Housing and Urban Development Department
Abstract
In reviewing HUD's May 7, 2024, final rule Housing Opportunity Through Modernization Act of 2016-Housing Choice Voucher (HCV) and Project-Based Voucher Implementation; Additional Streamlining Changes, HUD discovered minor errors and provisions that would benefit from clarification. This rule corrects those technical errors, updates references, and makes clarifying amendments.
Full Text
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<title>Federal Register, Volume 90 Issue 233 (Monday, December 8, 2025)</title>
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[Federal Register Volume 90, Number 233 (Monday, December 8, 2025)]
[Rules and Regulations]
[Pages 56683-56689]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2025-22157]
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DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
24 CFR Parts 5, 888, 903, 982, 983, and 985
[Docket No. FR-6092-F-05]
RIN 2577-AD06
Housing Opportunity Through Modernization Act of 2016--Housing
Choice Voucher (HCV) and Project-Based Voucher Implementation;
Additional Streamlining Changes; Technical Amendments
AGENCY: Office of the Assistant Secretary for Public and Indian
Housing, HUD.
ACTION: Final rule; technical amendments.
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SUMMARY: In reviewing HUD's May 7, 2024, final rule Housing Opportunity
[[Page 56684]]
Through Modernization Act of 2016-Housing Choice Voucher (HCV) and
Project-Based Voucher Implementation; Additional Streamlining Changes,
HUD discovered minor errors and provisions that would benefit from
clarification. This rule corrects those technical errors, updates
references, and makes clarifying amendments.
DATES: This rule is effective January 7, 2026.
FOR FURTHER INFORMATION CONTACT: For information regarding this
correction, contact Ryan Jones, Director, Housing Voucher Management
and Operations Division, Department of Housing and Urban Development,
451 7th Street SW, Washington, DC 20011; telephone number 202-708-1112
(this is not a toll-free number); email <a href="/cdn-cgi/l/email-protection#5a12150e171b0c352f39323f281a322f3e743d352c"><span class="__cf_email__" data-cfemail="abe3e4ffe6eafdc4dec8c3ced9ebc3decf85ccc4dd">[email protected]</span></a>. HUD
welcomes and is prepared to receive calls from individuals who are deaf
or hard of hearing, as well as individuals with speech and
communication disabilities. To learn more about how to make an
accessible telephone call, please visit <a href="https://www.fcc.gov/consumers/guides/telecommunications-relay-service-trs">https://www.fcc.gov/consumers/guides/telecommunications-relay-service-trs</a>.
SUPPLEMENTARY INFORMATION:
I. Background
On May 7, 2024, HUD published a final rule amending HUD's
regulations to implement changes to the Housing Choice Voucher (HCV)
and Project-Based Voucher (PBV) programs made by the Housing
Opportunity Through Modernization Act of 2016 (HOTMA) (89 FR 38224) (FR
Doc. 2024-08601) (HOTMA Voucher Final Rule). The HOTMA Voucher Final
Rule intended to reduce the burden on public housing agencies, by
either modifying requirements or simplifying and clarifying existing
regulatory language. On May 28, 2024, HUD published a Correction
addressing five errors made in the HOTMA Voucher Final Rule. In
reviewing the HOTMA Voucher Final Rule and the Correction, HUD
identified additional inadvertent errors as well as provisions with
unclear language. This rule corrects the inadvertent errors and
clarifies regulatory requirements.
II. Changes Made in This Final Rule
The following is an overview of the changes made to 24 CFR parts 5,
888, 903, 982, 983, and 985 in this final rule.
Sec. 5.100 and Sec. 5.504 Definitions of Responsible Entity
This final rule revises the definition of ``Responsible entity'' in
part 5, subparts A and E. In the HOTMA Voucher Final Rule, HUD intended
to amend the definitions to remove reference to the certificate program
only. However, HUD inadvertently added a reference to the Section 235
Program in Sec. 5.100 and removed references to several programs in
Sec. 5.504. This final rule corrects the definitions.
Sec. 888.113 Fair Market Rents for Existing Housing: Methodology
The HOTMA Voucher Final Rule revised Sec. 888.113(h)(1) to clarify
that the PHA and owner may mutually agree to apply Small Area fair
market rents (Small Area FMRs) to a PBV project where the project was
selected before ``either or both'' the Small Area FMR designation and
the PHA administrative policy. Prior to the HOTMA Voucher Final Rule,
the regulatory text only stated ``both'' which inadvertently created
confusion with respect to projects selected between the two events (the
Small Area FMR designation and the PHA administrative policy extending
Small Area FMRs to future PBV projects). HUD made the technical
correction to paragraph (h)(1) to clarify that if the PHA is applying
the Small Area FMRs to future PBV projects, the PHA may also establish
a policy to extend the use of Small Area FMRs to current PBV projects,
including those projects selected after the Small Area FMR designation
but prior to the effective date of the PHA administrative policy, if
the owner is willing to do so.
HUD has subsequently realized that Sec. 888.113(h)(3) and (4) also
require technical corrections. The correction in paragraph (h)(3)(ii)
reflects the changes made in the HOTMA Voucher Final Rule. A PHA
administering an HCV program in either a metropolitan area not subject
to the application of Small Area FMRs or in a non-metropolitan area for
which HUD publishes Small Area FMRs may now choose to use Small Area
FMRs after notification to HUD; HUD is no longer required to approve
such PHA requests to voluntarily use Small Area FMRs, per Sec.
888.113(c)(3).
The correction in Sec. 888.113(h)(4) clarifies that the term
``effective date'' in regard to the PHA administrative policy means the
effective date of the policy in the PHA Administrative Plan that has
been formally adopted by the PHA Board of Commissioners or other
authorized PHA officials in accordance with 24 CFR 982.54(a). The
current regulatory language has created confusion because it does not
contemplate a situation where the PHA Board adopts the PBV Small Area
FMR policy but provides that the policy does not go into effect until a
specific date in the future. For example, the Board adopts the revision
to the Administrative Plan on September 7, 2025, but provides in the
revised Administrative Plan that the effective date of the new PBV
Small Area FMR policy is January 1, 2026. HUD is concerned the existing
text could be misconstrued to mean HUD is prohibiting the Board from
establishing a future effective date beyond the actual date upon which
Board formally adopted the proposed PBV Small Area FMR revision to the
Administrative Plan, which was not the intent and which is clarified in
this final rule.
Sec. 903.7 What information must a PHA provide in the Annual Plan?
In this final rule, HUD is simplifying the language of Sec.
903.7(b)(3) by putting a sentence into list format.
Sec. 982.205 Waiting List: Different Programs
Section 982.205(a)(2)(i) and (ii) are amended to clarify that the
reference to the PBV waiting list includes any owner-maintained waiting
list. This clarifying language was added throughout the PBV regulations
in the HOTMA Voucher Final Rule but was inadvertently left out of the
HCV regulations. The correction does not add any new requirements.\1\
---------------------------------------------------------------------------
\1\ See 983.251(c)(7)(ix) ``All HCV waiting list administration
requirements that apply to the PBV program (24 CFR part 982, subpart
E, other than 24 CFR 982.201(e), 982.202(b)(2), and 982.204(d))
apply to owner-maintained waiting lists.''
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Sec. 982.405 and Sec. 982.406 Consistent Inclusion of Tenant-Based
Lease Protection Provision and Clarifying Timing
24 CFR 982.404(d) was added in the HOTMA Voucher Final Rule to
explain remedies for Housing Quality Standards (HQS) deficiencies
identified during inspections other than the initial inspection,
because initial inspections have separate requirements; generally, the
unit must have no deficiencies before the family can move to and be
assisted in the unit, but the PHA may use the alternative inspection
option, the non-life-threatening (NLT) deficiencies option, or both (24
CFR 982.405(j), 982.406(e)-(f)) to enable the assisted tenancy to begin
earlier. In creating this regulatory structure, HUD did not include a
provision mirroring 24 CFR 982.404(d)(3), respecting families'
protection from and options for lease termination during a period of
withholding or abatement, in each of the paragraphs governing the
inspection flexibilities for tenant-based HCV. The inspection
flexibilities are governed by parallel provisions in the PBV program,
and all of those PBV provisions (24 CFR
[[Page 56685]]
983.103(c)(2)(vi), (c)(3)(viii), and (c)(4)(vi)) do contain a provision
mirroring 24 CFR 982.404(d)(3). The omission from 24 CFR 982.405(j),
982.406(e)-(f) is corrected in this final rule by the addition of new
paragraphs at Sec. Sec. 982.405(j)(7), 982.406(e)(7), and
982.406(f)(7). The new paragraphs do not add new requirements. They
mirror the existing Sec. 982.404(d)(3) and are included in Sec. Sec.
982.405-406 for clarity and consistency.
Additionally, HUD is clarifying the description of the PHA policy
on termination after a prolonged period of deficiencies in Sec. Sec.
982.405(j)(6)(ii), 982.406(e)(6)(ii), and 982.406(f)(6)(ii) by changing
``The date by which'' to ``The number of days after which''. This
language mirrors the project-based voucher regulations. HUD believes
the new language is clearer and also avoids implying by differing
language that the PHA is required to enact different policies depending
on the type of inspection flexibility and program (tenant-based vs.
project-based).
Sec. 983.3 PBV Definitions
In the Final HOTMA Voucher Rule, HUD made changes to the
definitions of ``independent entity'' in Sec. 982.4 but failed to make
the mirroring changes to Sec. 983.3. The definitions should be the
same. The Sec. 983.3 definitions should read: ``Independent entity.
See 24 CFR 982.4''.
Sec. 983.103 Inspecting Units
In the Final HOTMA Voucher Rule, HUD established provisions in
Sec. 983.103(c) for initial inspections of existing housing using the
NLT option, the alternative inspections option, and the use of both of
the foregoing options together. In doing so, each option is described
separately in paragraphs (c)(2), (c)(3), and (c)(4), with each laying
out the process to execute the HAP contract, inspect and correct
deficiencies, occupy, make housing assistance payments (HAP), and
remedy continued deficiencies for the PBV units under the option. In
some cases, a provision expressly referencing an aspect of the process
was unintentionally omitted from one or two options or differed from
option to option in a manner that could be misinterpreted as
substantively different requirements. HUD is resolving the
discrepancies here to ensure the regulations accurately reflect the
intended consistency between the three options on matters that are
applicable to more than one option. These revisions do not
substantively change the regulations, but rather provide consistent
verbiage and structure to prevent confusion when following the
regulatory requirements.
Sec. 983.208 Condition of Contract Units
In codifying provisions of HOTMA that had not previously been
implemented, the HOTMA Voucher Final Rule was intended to align
corresponding PBV and HCV regulations, except where a provision was
inapplicable to one of the programs. Consequently, Sec. 983.208(d)(3)
should mirror Sec. 982.404(d)(3) to require families to notify both
the PHA and owner of termination of tenancy. Section 983.208(d)(3) is
amended here to align with the HCV provision at Sec. 982.404(d)(3),
which correctly reflects that notification to the PHA is necessary for
the PHA to continue a family's assistance when the family terminates
its assisted tenancy in a unit to which HAPs are abated due to HQS
deficiencies. HUD believes the public would have expected reference to
this necessary step to comprehensively codify this operation in the
regulatory text and makes this change accordingly.
Sec. 983.212 Substantial Improvement to Units Under a HAP Contract
This final rule amends Sec. 983.212(a)(3)(iii)(C) to add
clarifying language which matches the corresponding provision in Sec.
983.157(g)(6)(iii)(C). HUD is also correcting a reference from
paragraph (b)(1) to (b)(6).
Sec. 983.260 Overcrowded, Under-Occupied, and Accessible Units
24 CFR 983.260(c)(1) was intended to only apply where a PHA made an
offer of continued housing assistance under Sec. 983.260(b)(1), not
where a PHA takes action under Sec. 983.260(b)(2). While this limited
applicability is implied by the inclusion of different procedural
requirements in Sec. 983.260(b)(2), this rule adds clarifying language
to Sec. 983.260(c)(1) to ensure there is no ambiguity regarding the
inapplicability of the provision to actions taken under Sec.
983.260(b)(2).
Proposal or Project Selection Date--Sec. Sec. 983.3, 983.51, and
983.204
This final rule updates language to ensure the consistent use of
the term ``the proposal or project selection date.'' Additionally,
Sec. 983.3(b) is amended to use this term instead of ``the date of
selection.'' Sec. Sec. 983.51 and 983.204 are amended to clarify
requirements that apply to both the proposal or project selection date
and/or to switch the order of the words ``project'' and ``proposal''
for consistent use of the term ``the proposal or project selection
date''.
Substantial Improvement Corrections--Sec. Sec. 983.3 and 983.212
This final rule amends Sec. Sec. 983.3(b) and 983.212(a) to
clarify the distinction between completing substantial improvement and
development activity for units under a HAP contract. The intention of
the HOTMA Voucher Final Rule, as stated in its preamble, was to create
separate, distinct processes for completing development activity versus
substantial improvement. The current language of Sec. 983.212 provides
that development activity is an exception to the option to conduct
substantial improvement which could be interpreted as allowing the same
work to qualify as both, which would result in the work being
disallowed under either process. This final rule clarifies the two
distinct processes for completing substantial improvements and
development activity for units under a HAP contract.
Technical Corrections
HUD is also making a number of technical corrections in this final
rule. In Sec. 983.51, HUD is adding the word ``and'' between
paragraphs (e)(2)(ii) and (iii) to clarify that the paragraphs are a
list. In Sec. 983.59, HUD is removing the duplicative word ``or'' from
paragraph (b)(2)(ii) in the list made up of paragraphs (b)(2)(i)-(iv)
and removing the capitalization of the word ``for'' in paragraphs
983.59(b)(1)(iii) and (b)(2)(iii)(C).
In Sec. 983.153(c)(1), HUD is updating an incorrect reference from
983.157(a) to 983.157(b)(2) to correctly cite the paragraph referring
to development activity occurring before an Agreement or HAP contract.
HUD is also updating a reference in Sec. 983.262(d)(3)(iii) on
supporting services from paragraph(c)(2) to (d)(3)(ii). This final rule
will correct the citation in Sec. 985.3 from ``2 CFR Subpart F'' to
``2 CFR part 200, subpart F''.
In Sec. 982.4 and Sec. 982.516, HUD is correcting paragraph
numbering.
Finally, HUD is correcting words that were inadvertently left out
of paragraphs or wrongly included. Section 983.103(c)(4) is missing the
word ``inspection''. Section 983.206(b)(3) incorrectly referred to
``tenant-based utilities'' when it should refer to ``tenant-paid
utilities''.
III. Justification for Final Rulemaking
In general, HUD publishes a rule for public comments before issuing
a rule for effect, in accordance with HUD's regulations on rulemaking
at 24 CFR part 10. However, part 10 provides for exceptions to the
general rule where
[[Page 56686]]
HUD finds that public comment would be ``impracticable, unnecessary or
contrary to the public interest'' (24 CFR 10.1).
HUD finds that good cause exists to publish this final rule for
effect without first soliciting public comments. The amendments made in
this rule are technical, to provide further clarity, and correct
grammar and references. Furthermore, HUD believes that the public
comments submitted in response to the HOTMA Voucher Final Rule on these
topics, and HUD's responses to public comments provide HUD with a solid
basis to make the conforming changes in this final rule.
IV. Findings and Certifications
Regulatory Review--Executive Orders 12866 and 13563
Executive Orders 12866 and 13563 direct agencies to assess all
costs and benefits of available regulatory alternatives and, if
regulation is necessary, to select regulatory approaches that maximize
net benefits (including potential economic, environmental, public
health, and safety effects; distributive impacts; and equity).
Executive Order 13563 emphasizes the importance of quantifying both
costs and benefits, of reducing costs, of harmonizing rules, and of
promoting flexibility. Under Executive Order 12866 (Regulatory Planning
and Review), a determination must be made whether a regulatory action
is significant and, therefore, subject to review by the Office of
Management and Budget (OMB) in accordance with the requirements of the
order. In this final rule, HUD is making technical corrections and
clarifying amendments to avoid potential confusion. The changes are
technical in nature; HUD is not introducing any new regulatory changes
or rationales that differ in substance from the HOTMA Voucher Final
Rule. This rule was not subject to OMB review. This rule is not a
``significant regulatory action'' as defined in Section 3(f) of
Executive Order 12866 and is not an economically significant regulatory
action.
Regulatory Costs--Executive Order 14192
Executive Order 14192 (Unleashing Prosperity Through Deregulation)
requires that any new incremental costs associated with new regulations
shall, to the extent permitted by law, be offset by the elimination of
existing costs associated with at least 10 prior regulations. This
interim final rule reduces regulatory burden because it makes
amendments clarifying existing regulations.
Federalism--Executive Order 13132
Executive Order 13132 (Federalism) prohibits an agency from
publishing any rule that has federalism implications if the rule either
imposes substantial direct compliance costs on state and local
governments and is not required by statute, or the rule preempts state
law, unless the agency meets the consultation and funding requirements
of section 6 of the Executive Order. This final rule makes clarifying
amendments. It does not have federalism implications and does not
impose substantial direct compliance costs on state and local
governments nor does it preempt state law within the meaning of the
Executive Order.
Environmental Impact
In assessing the environmental impact of the HOTMA Voucher Final
Rule, HUD prepared a Finding of No Significant Impact (FONSI) in
accordance with HUD regulations in 24 CFR part 50 that implement
section 102(2)(C) of the National Environmental Policy Act of 1969 (42
U.S.C. 4332(2)(C)). The FONSI is available online at
<a href="http://www.regulations.gov">www.regulations.gov</a>. Accordingly, under 24 CFR 50.19(c)(4) this notice
is categorically excluded from environmental review under the National
Environmental Policy Act of 1969 (42 U.S.C. 4321).
Regulatory Flexibility Act
The Regulatory Flexibility Act (5 U.S.C. 601 et seq.) (RFA)
generally requires an agency to conduct a regulatory flexibility
analysis of any rule subject to notice and comment rulemaking
requirements, unless the agency certifies that the rule will not have a
significant economic impact on a substantial number of small entities.
Because HUD has determined that good cause exists to issue this rule
without prior public comment, this rule is not subject to the
requirement to publish an initial or final regulatory flexibility
analysis under the RFA as part of such action.
List of Subjects
24 CFR Part 5
Administrative practice and procedure, Aged, Claims, Crime,
Government contracts, Grant programs--housing and community
development, Individuals with disabilities, Intergovernmental
relations, Loan programs--housing and community development, Low and
moderate income housing, Mortgage insurance, Penalties, Pets, Public
housing, Rent subsidies, Reporting and recordkeeping requirements,
Social security, Unemployment compensation, Wages.
24 CFR Part 888
Grant programs--housing and community development, rent subsidies.
24 CFR Part 903
Administrative practice and procedure, Public housing, Reporting
and recordkeeping requirements.
24 CFR Part 982
Grant programs--housing and community development, Grant programs--
Indians, Indians, Public housing, Rent subsidies, Reporting and
recordkeeping requirements.
24 CFR Part 983
Grant programs--housing and community development, Low and moderate
income housing, Rent subsidies, Reporting and recordkeeping
requirements.
24 CFR Part 985
Grant programs--housing and community development, Public housing,
Rent subsidies, Reporting and recordkeeping requirements.
For the reasons stated in the preamble, HUD amends 24 CFR parts 5,
888, 903, 982, 983, and 985 as follows:
PART 5--GENERAL HUD PROGRAM REQUIREMENTS; WAIVERS
0
1. The authority for part 5 continues to read as follows:
Authority: 12 U.S.C. 1701x; 42 U.S.C. 1437a, 1437c, 1437f,
1437n, 3535(d); 42 U.S.C. 2000bb et seq.; 34 U.S.C. 12471 et seq.;
Sec. 327, Pub. L. 109-115, 119 Stat. 2396; E.O. 13279, 67 FR 77141,
3 CFR, 2002 Comp., p. 258; E.O. 13559, 75 FR 71319, 3 CFR, 2010
Comp., p. 273; E.O. 14015, 86 FR 10007, 3 CFR, 2021 Comp., p. 517.
0
2. Amend Sec. 5.100 by revising and republishing the definition of
``Responsible entity'' to read as follows:
Sec. 5.100 Definitions.
* * * * *
Responsible entity means:
(1) For the public housing program, the Section 8 tenant-based
assistance program (part 982 of this title), the Section 8 project-
based voucher program (part 983 of this title), and the Section 8
moderate rehabilitation program (part 882 of this title), the PHA
administering the program under an ACC with HUD.
(2) For all other Section 8 programs, the Section 8 project owner.
* * * * *
[[Page 56687]]
0
3. Amend Sec. 5.504 by revising and republishing the definition of
``Responsible entity'' to read as follows:
Sec. 5.504 Definitions.
* * * * *
Responsible entity means the person or entity responsible for
administering the restrictions on providing assistance to noncitizens
with ineligible immigrations status. The entity responsible for
administering the restrictions on providing assistance to noncitizens
with ineligible immigration status under the various covered programs
is as follows:
(1) For the Section 235 Program, the mortgagee.
(2) For Public Housing, the Section 8 tenant-based assistance, the
Section 8 project-based voucher, and the Section 8 Moderate
Rehabilitation programs, the PHA administering the program under an ACC
with HUD.
(3) For all other Section 8 programs, the Section 236 Program, and
the Rent Supplement Program, the owner.
* * * * *
PART 888--SECTION 8 HOUSING ASSISTANCE PAYMENTS PROGRAM--FAIR
MARKET RENTS AND CONTRACT RENT ANNUAL ADJUSTMENT FACTORS
0
4. The authority citation for part 888 continues to read as follows:
Authority: 42 U.S.C. 1437f and 3535d.
0
5. Amend Sec. 888.113 by revising paragraphs (h)(3)(ii) and (4) to
read as follows:
Sec. 888.113 Fair market rents for existing housing: Methodology.
* * * * *
(h) * * *
(3) * * *
(ii) The date that the PHA notified HUD it will use Small Area FMRs
for its HCV program, as applicable.
(4) For purposes of this section, the term ``effective date'' when
used in reference to the PHA administrative policy means the effective
date of the policy in the PHA Administrative Plan that has been
formally adopted by the PHA Board of Commissioners or other authorized
PHA officials in accordance with 24 CFR 982.54(a).
* * * * *
PART 903--PUBLIC HOUSING AGENCY PLANS
0
6. The authority citation for part 903 continues to read as follows:
Authority: 42 U.S.C. 1437c; 42 U.S.C. 1437c-1; Pub. L. 110-289;
42 U.S.C. 3535d.
0
7. Amend Sec. 903.7 by revising paragraph (b)(3) to read as follows:
Sec. 903.7 What information must a PHA provide in the Annual Plan?
* * * * *
(b) * * *
(3) Other admissions policies. The PHA's admission policies that
include any other PHA policies that govern eligibility, selection, and
admissions for the public housing (see part 960 of this title), tenant-
based assistance (see part 982, subpart E of this title), and project-
based assistance (see part 982, subpart E of this title except as
provided in Sec. 983.3, and part 983, subpart F) programs. (The
information requested on site-based waiting lists and deconcentration
is applicable only to public housing.)
* * * * *
PART 982--SECTION 8 TENANT-BASED ASSISTANCE: HOUSING CHOICE VOUCHER
PROGRAM
0
8. The authority citation for part 982 continues to read as follows:
Authority: 42 U.S.C. 1437f and 3535(d).
Sec. 982.205 [Amended]
0
9. Amend Sec. 982.205, in paragraphs (a)(2)(i) and (ii), by removing
the text ``project-based voucher program or moderate rehabilitation'',
wherever it appears, and adding, in its place, the text ``project-based
voucher program (including any owner-maintained waiting list), or
moderate rehabilitation''.
0
10. Amend Sec. 982.405 by:
0
a. In paragraph (j)(6)(ii), removing the text ``The date by which'' and
adding, it its place, the text ``The number of days after which''; and
0
b. Adding paragraph (j)(7).
The addition reads as follows:
Sec. 982.405 PHA unit inspection.
* * * * *
(j) * * *
(7) The owner may not terminate the tenancy of the family due to
the withholding or abatement of assistance under this paragraph (j).
During the period that assistance is abated, the family may terminate
the tenancy by notifying the owner and the PHA. If the family chooses
to terminate the tenancy, the HAP contract will automatically terminate
on the effective date of the tenancy termination or the date the family
vacates the unit, whichever is earlier. The PHA must promptly issue the
family its voucher to move.
0
11. Amend Sec. 982.406 by:
0
a. In paragraphs (e)(6)(ii), removing the text ``The date by which''
and adding, it its place, the text ``The number of days after which'';
0
b. Adding paragraph (e)(7);
0
c. In paragraph (f)(6)(ii), removing the text ``The date by which'' and
adding, it its place, the text ``The number of days after which''; and
0
d. Adding paragraph (f)(7).
The additions read as follows
Sec. 982.406 Use of alternative inspections.
* * * * *
(e) * * *
(7) The owner may not terminate the tenancy of the family due to
the withholding or abatement of assistance under this paragraph (e).
During the period that assistance is abated, the family may terminate
the tenancy by notifying the owner and the PHA. If the family chooses
to terminate the tenancy, the HAP contract will automatically terminate
on the effective date of the tenancy termination or the date the family
vacates the unit, whichever is earlier. The PHA must promptly issue the
family its voucher to move.
* * * * *
(f) * * *
(7) The owner may not terminate the tenancy of the family due to
the withholding or abatement of assistance under this paragraph (f).
During the period that assistance is abated, the family may terminate
the tenancy by notifying the owner and the PHA. If the family chooses
to terminate the tenancy, the HAP contract will automatically terminate
on the effective date of the tenancy termination or the date the family
vacates the unit, whichever is earlier. The PHA must promptly issue the
family its voucher to move.
* * * * *
Sec. 982.516 [Amended]
0
12. Amend Sec. 982.516 by redesignating paragraphs (f)(i) and (ii) as
paragraphs (f)(1) and (2).
PART 983--PROJECT-BASED VOUCHER (PBV) PROGRAM
0
13. The authority citation for part 983 continues to read as follows:
Authority: 42 U.S.C. 1437f and 3535(d).
0
14. In Sec. 983.3, amend paragraph (b) by:
0
a. Revising the definition of ``Independent entity'';
0
b. In the definition of ``Newly constructed housing'', removing the
text ``after the date of selection for'' and adding, in its place, the
text ``after the proposal or project selection date for''; and
0
c. Revising the introductory text of the definition of ``Substantial
improvement''.
[[Page 56688]]
The revisions read as follows:
Sec. 983.3 PBV definitions.
* * * * *
(b) * * *
Independent entity. See 24 CFR 982.4.
* * * * *
Substantial improvement. One of the following activities undertaken
at a time beginning from the proposal submission date (for projects
subject to competitive selection) or from the project selection date
(for projects excepted from competitive selection), or undertaken
during the term of the PBV HAP contract, except that development
activity performed for rehabilitated housing or newly constructed
housing shall not also qualify as substantial improvement:
* * * * *
Sec. 983.51 [Amended]
0
15. Amend Sec. 983.51 by:
0
a. Adding the word ``and'' after the semicolon at the end of paragraph
(e)(2)(ii);
0
b. In paragraph (f)(4), removing the text ``project or proposal''
wherever it appears, and adding, in its place, the text ``proposal and
project'', and removing the citation to ``983.56(c)'' and adding, in
its place, a citation to ``Sec. 983.56(c)'';
0
c. In the first sentence of paragraph (h), removing the text
``project'' wherever it appears, and adding, in its place, the text
``proposal or project'';
0
d. In paragraph (i), removing the text ``proposal'', and adding, in its
place, the text ``proposal or project'';
0
e. In paragraph (j), removing the text ``projects or owners'' in the
first sentence and adding, in its place, the text ``proposals,
projects, or owners'', and removing the text ``owner proposal'' in the
second sentence and adding, in its place, the text ``proposal or
project''; and
0
f. In paragraph (k), removing the text ``project'' and adding, in its
place, the text ``proposal or project''.
0
16. Amend Sec. 983.59 by revising paragraph (b)(1)(iii), removing the
word ``or'' after the semicolon at the end of paragraph (b)(2)(ii), and
revising paragraph (b)(2)(iii)(C) to read as follows:
Sec. 983.59 Units excluded from program cap and project cap.
* * * * *
(b) * * *
(1) * * *
(iii) Housing for the Elderly (Section 202 of the Housing Act of
1959);
* * * * *
(2) * * *
(iii) * * *
(C) Housing for the Elderly (Section 202 of the Housing Act of
1959);
* * * * *
0
17. Amend Sec. 983.103 by:
0
a. Revising the second sentence of paragraph (c)(2)(vi), the last
sentence of paragraph (c)(3)(ii), and the second sentence of paragraph
(c)(3)(iii);
0
b. In paragraph (c)(3)(v), adding a sentence after the first sentence;
0
c. In paragraph (c)(3)(vi), removing the text ``the date by which'' and
adding, in its place, the text ``the number of days after which''; and
0
d. Revising the second sentence of paragraph (c)(3)(viii), heading of
paragraph (c)(4), paragraph (c)(4)(i), the first sentence of paragraph
(c)(4)(ii), paragraph (c)(4)(iii), the last sentence of paragraph
(c)(4)(iv), the third and fourth sentences of paragraph (c)(4)(v), and
the first sentence of paragraph (c)(4)(vi) introductory text.
The revisions and addition read as follows:
Sec. 983.103 Inspecting units.
* * * * *
(c) * * *
(2) * * *
(vi) * * * During the period the assistance is abated, a family may
terminate the tenancy by notifying the owner and the PHA, and the PHA
must provide the family tenant-based assistance. * * *
(3) * * *
(ii) * * * A family referred from the waiting list may decline to
accept an offered unit due to unit conditions and remain on the waiting
list.
(iii) * * * If the family reports a deficiency to the PHA prior to
the PHA's inspection, the PHA must inspect the unit within the time
period required under paragraph (f) of this section or within 30 days
of the proposal or project selection date, whichever time period ends
first.
* * * * *
(v) * * * The PHA must not refer families from the PBV waiting list
to occupy units with deficiencies. * * *
* * * * *
(viii) * * * During the period the assistance is abated, a family
may terminate the tenancy by notifying the owner, and the PHA must
provide the family tenant-based assistance. * * *
(4) Initial inspection--use of both the NLT and alternative
inspection options. * * *
(i) If the owner agrees to both the NLT option and the alternative
inspection option, then the PHA notifies all families (any eligible in-
place family (Sec. 983.251(d)) or any family referred from the PBV
waiting list that will occupy the unit before the PHA conducts the HQS
inspection) that both the NLT option and the alternative inspection
option will be used for the family's unit. As part of this
notification, the PHA must provide the family with the PHA's list of
HQS deficiencies that are considered life-threatening. A family
referred from the waiting list may decline to move into a unit due to
unit conditions and remain on the waiting list. Following inspection
(see paragraph (c)(4)(ii) of this section), the PHA must provide any
family referred from the PBV waiting list that will occupy a unit with
non-life-threatening deficiencies a list of the non-life-threatening
deficiencies identified by the initial HQS inspection and an
explanation of the maximum amount of time the PHA will withhold HAP
before abating assistance if the owner does not complete the repairs
within 30 days. The PHA must also inform the family that if the family
accepts the unit and the owner fails to make the repairs within the
cure period, which may not exceed 180 days from the effective date of
the HAP contract, the PHA will remove the unit from the HAP contract,
and the family will be issued a voucher to move to another unit in
order to receive voucher assistance. If the PHA's Administrative Plan
provides that the PHA will terminate the PBV HAP contract if the owner
fails to correct deficiencies in any unit in the project within the
cure period, then, following inspection, the PHA must also provide the
notice described in this paragraph to families referred to units
without any deficiencies. The family referred from the waiting list may
choose to decline the unit and remain on the waiting list.
(ii) The PHA executes the HAP contract with the owner on the basis
of an inspection in the previous 24 months using an alternative
inspection that meets the requirements of 24 CFR 982.406. * * *
(iii) The PHA may not commence housing assistance payments to the
owner until the PHA has inspected all the units under the HAP contract.
(iv) * * * Once the deficiencies are corrected, the PHA must use
the withheld housing assistance payments to make payments for the
period that payments were withheld.
(v) * * * The owner must correct all life-threatening deficiencies
within no more than 24 hours of notification from the PHA. For other
deficiencies, the owner must correct the deficiency within no more than
30 calendar days (or any PHA-approved extension) of notification from
the PHA. * * *
[[Page 56689]]
(vi) The owner may not terminate the tenancy of a family because of
the withholding or abatement of assistance payments. * * *
* * * * *
Sec. 983.153 [Amended]
0
18. In Sec. 983.153, amend paragraph (c)(1) by removing the citation
``983.157(a)'' and adding in its place the citation ``983.157(b)(2)''.
Sec. 983.204 [Amended]
0
19. In Sec. 983.204, amend paragraph (b) by removing the text ``owner
proposal'' and adding, in its place, the text ``proposal or project''.
Sec. 983.206 [Amended]
0
20. In Sec. 983.206, amend paragraph (b)(3) by removing the text
``tenant-based utilities'' and adding, in its place, the text ``tenant-
paid utilities''.
0
21. Amend Sec. 983.208 by:
0
a. Revising the heading of paragraph (a).
0
b. In paragraph (d)(3), removing the text ``the owner'' and adding, in
its place, the text ``the owner and the PHA''.
Sec. 983.208 Condition of contract units.
(a) Owner maintenance and operation. * * *
* * * * *
0
22. Amend Sec. 983.212 by:
0
a. Revising the introductory text of paragraph (a);
0
b. In paragraph (a)(3)(iii)(C), removing the text ``in the case of an
absolute'' and adding, in its place, the text ``in the case of an
owner-maintained waiting list, must place the family on the PBV waiting
list with an absolute''; and
0
c. In paragraph (a)(4), removing the reference to ``(b)(1)'' and
adding, in its place, a reference to ``(b)(6)''.
The revision reads as follows:
Sec. 983.212 Substantial improvement to units under a HAP contract.
(a) Substantial improvement to units under a HAP contract. The
owner may undertake substantial improvement on a unit currently under a
HAP contract if approved to do so by the PHA. The owner may request PHA
approval no earlier than the effective date of the HAP contract. (All
work occurring on a unit in a project that is under a HAP contract
subject to a rider in accordance with Sec. 983.157 is development
activity and is not subject to this section.) The following conditions
apply:
* * * * *
Sec. 983.260 [Amended]
0
23. In Sec. 983.260, amend the introductory text of paragraph (c)(1)
by removing the text ``voucher program'' and adding, in its place, the
text ``voucher program in accordance with paragraph (b)(1) of this
section''.
Sec. 983.262 [Amended]
0
24. In Sec. 983.262, amend paragraph (d)(3)(iii) by removing the
reference to ``paragraph (c)(2) of this section'' and adding, in its
place, a reference to ``paragraph (d)(3)(ii) of this section''.
PART 985--SECTION 8 MANAGEMENT ASSESSMENT PROGRAM (SEMAP) AND SMALL
RURAL PHA ASSESSMENTS
0
25. The authority citation for part 985 continues to read as follows:
Authority: 42 U.S.C. 1437a, 1437c, 1437f, 1437z-10, and 3535(d).
Sec. 985.3 Indicators, HUD verification methods and ratings.
0
26. In Sec. 985.3, amend the second paragraph of the undesignated
introductory text by removing the reference to ``2 CFR Subpart F'' and
adding, in its place, a reference to ``2 CFR part 200, subpart F''.
Andrew Hughes,
Deputy Secretary.
[FR Doc. 2025-22157 Filed 12-5-25; 8:45 am]
BILLING CODE 4210-67-P
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</html>Indexed from Federal Register on December 8, 2025.
This is legal information, not legal advice. Laws vary by jurisdiction and change frequently. Always verify current law with official sources and consult a licensed attorney in your jurisdiction for advice on your specific situation.