RD and HUD Final Rule Removing 30-Day Notice Requirement for Nonpayment of Rent
The Rural Housing Service (RHS) issued a Final Rule entitled, Rescinding 30-Day Notification Requirements Related to Eviction Based on Nonpayment of Rent in Multi-Family Housing Direct Properties.
The Coronavirus Aid, Relief, and Economic Security Act (CARES Act) took effect on March 27, 2020, and imposed a permanent requirement that owners of “covered properties” must provide residents a 30-day notice to vacate prior to eviction for nonpayment of rent, which included Sections 514, 515, and 538 RHS multifamily properties. Although the CARES Act’s statutory 30‑day notice requirement applied directly to RHS properties, because it was enacted through emergency legislation rather than existing RHS regulations, RHS issued its own rule in 2024 to incorporate the CARES Act requirement into the Section 514/515 regulatory framework. That rule was intended to align RHS procedures with the CARES Act and ensure consistent enforcement across all covered properties. The 2026 Final Rule issued today, rescinds RHS’ regulatory 30‑day notice requirement because RHS determined that the rule it adopted in 2024 was unnecessary, duplicative, and added oversight that did not improve resident protections.
Through this final rule, “RHS is amending § 3560.156 by revising paragraph (c)(18)(xvi), “Lease Requirements,” to remove the required minimum notice of 30 days. The rule will also remove § 3560.159 paragraph (a)(3) under “Termination of Occupancy,” to remove the 30-day minimum notice and additional information including information as required by the Secretary during a presidentially declared national emergency. Finally, the rule will remove § 3560.160 paragraph (c)(4) under “Tenant Grievances,” that also details the requirement to disseminate information as required by the Secretary during a presidentially declared national emergency.”
RHS states in the Final Rule that they are “confident the longstanding guidelines and regulations in Section 515 and Section 514 Multifamily Housing tenant recertification process, which predate the 30-Day Notice Final Rule and the CARES Act, protect its tenants from being evicted less than 30 days from receiving notice of non-payment.” According to RHS, the Final Rule will reduce the regulatory burden by “rescinding the regulatory requirement of the minimum 30-day notice for nonpayment of rent before initiating eviction proceedings. The final rule removes burdensome and duplicative requirements for RHS Multifamily Housing Program borrowers.”
CARH applauds the agency for issuing this final regulation, but it is important for CARH members to keep in mind that the 30-day notification is still required under the CARES Act, which has yet to be repealed by Congress. Legislation has been introduced in Congress which would remove this statutory language but until such legislation is passed, the 30-day notification requirement will remain in effect.
HUD has taken parallel action by issuing its own Final Rule, revoking the 30‑day notification requirement prior to terminating a lease for nonpayment of rent in HUD‑assisted housing. Like RHS, HUD determined that maintaining a separate regulatory requirement created confusion and added administrative burden without providing additional resident protection. By rescinding its own rule, HUD is aligning its regulations with the statutory framework and ensuring that if Congress acts on the CARES Act language, the agency can implement the change immediately without conflicting regulatory text.
