8-5 Key Requirements: When Assistance Must Be Terminated

An owner must terminate a tenant’s assistance in the following circumstances:

• A. A tenant fails to provide required information at the time of recertification, including changes in family composition, or changes in income or social security numbers for new household members .

• B. A tenant fails to sign/submit required consent and verification forms (form HUD9887 and form HUD-9887-A).

  1. Form HUD-9887, Notice and Consent for the Release of Information to HUD and to a PHA permits HUD to obtain wage and claim information from State Wage Information Collection Agencies (SWICAs), current tax information from the Internal Revenue Service (IRS), and wages and unemployment compensation information from the Social Security Administration (SSA) and the Department of Health and Human Services’ (HSS’) National Directory of New Hires (NDNH).

HUD Occupancy Handbook Chapter 8: Termination

8/13

8-3

Section 1: Termination of Assistance

4350.3 REV-1

2. Form HUD-9887-A, Applicant’s/Tenant’s Consent to the Release of Information – Verification by Owners of Information Supplied by Individuals Who Apply for Housing Assistance allows an owner to obtain and verify information about income, assets, and allowances for items such as child care and medical expenses, which is needed to determine the amount of rent a tenant must pay.

• C. An annual or interim recertification determines that the tenant has an increased ability to pay the full contract rent.

• D. A tenant fails to move to a different-sized unit within 30 days after the owner notifies him/her that the unit of the required size is available. As required by the HUD lease, if the tenant remains in the same unit, the tenant must pay the market rent, full contract rent, or 110% of the BMIR rent .

*NOTE: When assistance is terminated for a tenant with more than one form of subsidy, the tenant must pay the market rent, full contract rent, or 110% of BMIR rent. For example, if a tenant resides in a Section 236 property and receives Section 8 assistance, the tenant would pay the full Section 8 contract rent if his or her assistance were terminated unless there is an eligible in-place Section 236 tenant or a vacant unit the Section 8 can be transferred to.

• E. A tenant has begun receiving assistance, but the owner is unable to establish citizenship or eligible immigration status for any family member from the information provided by the tenant and determines that the tenant does not meet the citizenship requirement. (See Chapters 3, 4, and 7 for other citizenship and eligible immigration status requirements. Restriction on assistance to noncitizens is addressed in paragraph 3-12, denial of assistance is addressed in paragraph 4- 31, and changes in status are addressed in paragraph 7-11.)

The process for owners to verify and establish a tenant’s eligible immigration status can be lengthy. Sometimes a tenant begins receiving assistance before the owner establishes citizenship or eligible immigration status; this happens when the owner encounters delays in verifying the information provided by the tenant. If the owner then determines that the tenant does not meet the requirement for citizenship or eligible immigration status, the assistance must be terminated. Refer to paragraph 3-12 K for further guidance.

NOTE: This requirement does not apply to the following programs covered by this handbook, Section 202 PRAC, Section 811 PRAC, Section 202 PAC and Section 221(d)(3) BMIR..

• F. A student enrolled at an institution of higher education does not meet the eligibility requirements for assistance. (See Chapter 3, paragraph 3-13.)

• G. REMINDER: Actions to terminate assistance must be based only on a change in the tenant’s eligibility for assistance or a tenant’s failure to fulfill specific responsibilities under program requirements. Owners must not take action to terminate assistance based on other factors.

HUD Occupancy Handbook Chapter 8: Termination

8/13

8-4

Section 1: Termination of Assistance

4350.3 REV-1