At 24 consecutive months the PHA must charge the alternative non-public housing rent or terminate the tenancy

ph.over_income.required_action_after_the_grace_period · v1.0.0

Once a family has exceeded the over-income limit for 24 consecutive months the PHA must, as detailed in its admissions and continued occupancy policies, either require the family to execute a new lease consistent with 24 CFR 960.509 and charge the alternative non-public housing rent no later than 60 days after the 24-month notice or at the next lease renewal, whichever is sooner; or terminate the tenancy no more than 6 months after that notice, as determined by the PHA's continued occupancy policy. There is no third option and doing nothing is not one. Where the PHA terminates, it must continue to charge the family its choice of income-based rent, flat rent, or prorated rent for a mixed family during the period before termination, the lease converts to a month-to-month term as of the date of the 24-month notice, and the PHA must give appropriate notice to vacate in accordance with state and local law. Where the family instead executes the non-public housing over-income lease, it remains a tenant but is no longer a public housing program participant for most purposes: it is precluded from participating in a public housing resident council, cannot participate in programs that are only for public housing or low-income families, may not be provided any federal assistance including a utility allowance, is not subject to the community service and self-sufficiency requirements, and may not have its family income reexamined annually. The alternative non-public housing rent is the greater of the applicable fair market rent for the unit or the amount of the monthly subsidy provided for the unit, computed by adding the per unit Capital Fund and Operating Fund assistance, which HUD publishes no later than 31 December each year. A family that does not execute the lease within the period must have its tenancy terminated no more than 6 months after the 24-month notice, although the PHA may permit later execution before termination if the family pays the difference between the alternative rent and its public housing rent back to the point at which the lease should have been executed. An over-income family remains a public housing program participant until its tenancy is terminated or it executes the new lease.

Confidence

high

Effective from

2023-03-16

Consequence model

agency finding with cure

Last reviewed

2026-08-30