A 202/8 family stays eligible for housing assistance payments until total tenant payment equals or exceeds gross rent, and loses subsidy without losing the tenancy

s2028.over_income.continued_occupancy · v1.0.0

A family occupying an assisted unit in a Section 202 direct loan project remains eligible for housing assistance payments until its total tenant payment equals or exceeds the gross rent. Termination of subsidy eligibility at that point does not affect the family's other rights under its lease. Housing assistance payments may be resumed if, as a result of changes in income, rent or other relevant circumstances during the term of the HAP contract, the family again meets the income eligibility requirements of 24 CFR 5.657 and housing assistance is available for the unit under the terms of the HAP contract, and the family is not required to re-establish its eligibility for admission. Eligibility may separately be terminated for failure to submit requested verification information, including Social Security Number disclosure and verification, or failure to sign and submit State Wage Information Collection Agency consent forms.

Confidence

high

Effective from

1996-03-22

Last reviewed

2026-08-29