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federalUnited StatesUSDA Rural Development Section 515 Rural Rental Housing Loanstermination_eviction

Occupancy may be terminated only for material non-compliance or good cause, after written notice and a chance to cure

rd515.termination_eviction.material_noncompliance_or_good_cause_only · v1.0.0

A Section 515 borrower may terminate or refuse to renew a tenant's lease only for material non-compliance with the lease, material non-compliance with the occupancy rules, or other good cause. Before terminating, the borrower must give the tenant written notice of the violation and an opportunity to correct it, and termination may follow only where the incidents are documented and the file shows the tenant was warned in advance that the conduct would lead to termination. Expiry of the lease term is not itself a ground: occupancy may not be terminated at lease expiration unless the tenant's conduct meets the material non-compliance or good cause test, or the tenant is no longer eligible. The termination notice must state the date of termination, the specific lease or occupancy-rule provision relied on, and the conditions under which the borrower may bring judicial action.

Section 3560.159 was amended twice recently - at 89 FR 20543 (Mar. 25, 2024) and 91 FR 9137 (Feb. 25, 2026). effective.from is set at the later amendment's date because the text encoded here is the text as amended; the underlying good-cause standard itself dates to the 2004 rule at 69 FR 69106.
Confidence
high
Effective from
2026-02-25
Last reviewed
2026-08-30

Citations

All sources verified within 1 day
  • Direct Multi-Family Housing Loans and Grants
    7 CFR 3560.159(a)
    regulationSource ↗verified 1d ago
  • Direct Multi-Family Housing Loans and Grants
    7 CFR 3560.159(b)
    regulationSource ↗verified 1d ago