HUD Handbook 4350.3: Occupancy Requirements of Subsidized Multifamily Housing Programs
Temporary deferral of termination of assistance
HUD Handbook 4350.3 REV-1 — Occupancy Requirements of Subsidized Multifamily Housing Programs · 2026 edition · updated 2026-10-05 · United States
What it is? Deferral of the termination of assistance a tenant family is currently receiving to permit the family additional time to make an orderly transition to other affordable housing.
Deferral period. The initial period is for six months and may be renewed for additional periods of six months, but the aggregate deferral period shall not exceed a period of 18 months.
NOTE: If the family receiving assistance on June 19,1995 includes a refugee under section 207 of the Immigration and Nationality Act, or an individual seeking asylum under section 208 of that Act, a deferral can be given to the family and there is no time limitation on the deferral period. The 18 month deferral limitation does not apply.
Availability.
*The family was in residence on June 19,1995; *
It is available to a mixed tenant family who qualifies for prorated assistance (and does not qualify for continued assistance), but decides not to accept prorated assistance;
A tenant family who has no members with eligible status and for whom the temporary deferral is necessary to permit the family additional time for the orderly transition of those family members with ineligible status, and any other family members involved, to other affordable housing.
Conditions. Temporary deferral shall be granted to the family if one of the following conditions is met:
The family demonstrates that reasonable efforts to find other affordable housing of appropriate size have been unsuccessful;
The vacancy rate for affordable housing of appropriate size is below 5% in the housing market area; or
The Consolidated Plan, if it applies to the program, indicates that the local jurisdiction's housing market lacks sufficient affordable housing opportunities for households having a size and income similar to the family seeking the deferral.
Please contact this office immediately to discuss the type of assistance you wish to pursue. At that time, these options will be discussed with you in detail. If you fail to contact this office within 30 days from the date of this letter, your financial assistance will automatically be reduced under the proration of assistance requirements.
Also, if there are any changes to your family (either additions to or removal of any family member or changes in their immigration status), you must contact this office immediately to
HUD Occupancy Handbook Exhibit 3-10
6/07
2
4350.3 REV-1
determine if a further Section 214 review is necessary. As long as there are no changes to your family, this review will not be repeated unless you move from your present unit to another assisted-housing situation.
In the event that your family does move and/or you change the type of housing assistance you receive, a new Section 214 review will be completed by the new project owner (or other responsible entity).
This decision does not preclude your family from exercising the right that may otherwise be available to seek redress directly through judicial procedures.
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