A Section 202 PRAC household stays eligible for subsidy until total tenant payment equals or exceeds gross rent, and loses subsidy without losing the tenancy

s202prac.over_income.continued_occupancy · v1.0.0

A household occupying an assisted unit remains eligible for project rental assistance until its total tenant payment equals or exceeds the gross rent, or a pro rata share of the gross rent in a group home. When that point is reached the subsidy stops, but the termination of subsidy eligibility does not affect the household's other rights under its lease and the unit or residential space is not removed from the PRAC. If a later change in income, rent or other circumstances brings the household back within the income eligibility requirements of 24 CFR 5.657 as modified by 24 CFR 891.105, project rental assistance payments may be resumed and the household is not required to re-establish its eligibility for admission.

Confidence

high

Effective from

1996-03-22

Last reviewed

2026-08-29