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01/08/2025

HUD Strengthens Tenant Protections in New HOME Rule

By A.J. Johnson

The U.S. Department of Housing and Urban Development (HUD) has published the Final Rule for the HOME Investment Partnerships Program, which will take effect on February 5, 2025. The new rule significantly enhances tenant protections and lease requirements, establishing a robust framework for tenant rights and landlord responsibilities.

Enhanced Lease Requirements

The Final Rule mandates that property owners provide written leases with a minimum one-year term, though shorter periods are permissible if mutually agreed upon. These leases must incorporate a HOME tenancy addendum and include multiple communication methods for tenant-owner interaction. The participating jurisdiction's contact information must also be clearly stated in the lease agreement.

Physical Condition Standards

Property owners face stricter property maintenance and repair requirements under the new rule. They must:

Tenant Rights and Protections

The rule significantly expands tenant rights, including:

Use and Occupancy Rights

Legal and Administrative Protections

Notice Requirements

The rule strengthens notification requirements, mandating that owners:

Security Deposits and Termination

Security Deposit Regulations

Termination Procedures

Non-Discrimination and Equal Opportunity

The Final Rule reinforces compliance requirements with all applicable non-discrimination and equal opportunity regulations, ensuring fair treatment of all tenants regardless of protected characteristics.

Compliance Timeline

Property owners and participating jurisdictions must implement these enhanced protections by February 5, 2025, when the Final Rule takes effect. This timeline ensures adequate preparation for the new requirements while maintaining continuous tenant protections during the transition period.

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