All assisted units must be leased to eligible families, and sustained failure lets the PHA reduce the number of units under contract

mod_rehab.unit_designation.contract_reduction_when_units_are_not_leased_to_eligible_families · v1.0.0

Owners must lease all assisted units under the contract to eligible families; leasing vacant assisted units to ineligible tenants is a violation of the contract and grounds for all available legal remedies, including suspension or debarment from HUD programs and reduction of the number of units under contract. If, at any time beginning six months after the effective date of the contract, the owner fails for a period of six continuous months to have at least 90 percent of the assisted units leased or available for leasing by eligible families because families initially eligible have become ineligible, the PHA may on at least 30 days' notice reduce the number of units covered by the contract to the number actually leased or available for leasing by eligible families plus 10 percent, rounded up. The PHA must agree to restore a reduction where demand justifies it, the owner otherwise has a record of compliance, and contract authority is available.

Confidence

high

Effective from

1998-04-30

Consequence model

agency finding with cure

Last reviewed

2026-08-31