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Exhibit 7-4: Sample Annual Recertification Third Reminder Notice/Notice of Termination

B. Factors to Consider When Terminating Tenancy for Drug Abuse and Other Criminal Activity

HUD Handbook 4350.3 REV-1 — Occupancy Requirements of Subsidized Multifamily Housing Programs · 2026 edition · updated 2026-10-05 · United States

NOTE: Owners should be careful to implement consistently all criminal background checks and decision-making procedures. Owners are required to have their procedures included as part of their Tenant Selection Plan (see Chapter 4, Figure 4-2.)

  1. As part of their eviction standards, owners may consider all of the circumstances relevant to a particular eviction case, such as:

    • a. The seriousness of the offending action;

    • b. The effect on the community of terminating or not terminating tenancy;

HUD Occupancy Handbook Chapter 8: Termination

6/07

8-18

Section 3: Termination of Tenancy by Owners

4350.3 REV-1

  • c. The extent of the tenant’s participation in the offending action;

  • d. The effect of termination of tenancy on household members not involved in the offending action;

  • e. The demand for assisted housing by families who will adhere to lease responsibilities;

  • f. The extent to which the tenant has shown personal responsibility and taken all reasonable steps to prevent or mitigate the offending action; and

  • g. The effect of the owner’s action on the integrity of the program.

  1. In determining whether to terminate tenancy for illegal use of drugs or alcohol abuse by a household member who is no longer engaged in such behavior , an owner may consider and may require evidence of whether the member:

    • a. Is participating in or has successfully completed a supervised drug or alcohol rehabilitation program; or

    • b. Has otherwise been rehabilitated successfully.

  2. A tenant may be required to exclude a household member in order to continue to reside in the unit when that household member has participated in, or is responsible for, an action or a failure to act that warrants termination.

  • C.

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▸Contents — HUD Handbook 4350.3 REV-1 — Occupancy Requirements of Subsidized Multifamily Housing Programs

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