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:
- Maintain units and projects in compliance with property standards and local codes
- Provide written timeframes for maintenance and repairs
- Refrain from charging tenants for normal wear and tear
- Relocate tenants to suitable housing if life-threatening deficiencies cannot be immediately addressed
Tenant Rights and Protections
The rule significantly expands tenant rights, including:
Use and Occupancy Rights
- Exclusive use and occupancy of their units
- Reasonable access to common areas
- Right to organize tenant associations
- Protection against unreasonable entry, requiring advance notice except in emergencies
Legal and Administrative Protections
- Right to independent legal representation
- Access to jury trials and appeals
- Protection against unauthorized seizure of personal property
- Safeguards against retaliation for exercising tenant rights
- Confidentiality of personal information
Notice Requirements
The rule strengthens notification requirements, mandating that owners:
- Provide written notice before any adverse actions
- Notify tenants of ownership or management changes
- Give at least 30 days’ notice before property sales or foreclosures
- Issue written notices specifying grounds for adverse actions
Security Deposits and Termination
Security Deposit Regulations
- Deposits cannot exceed two months’ rent
- Must be fully refundable
- Owners must itemize any charges against the deposit
- Unused portions must be promptly refunded
Termination Procedures
- Termination is permitted only for serious lease violations, legal infractions, or good cause.
- Minimum 30-day notice required for termination
- Exception for immediate threats to safety or property
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.