The Rural Housing Service (RHS) of the U.S. Department of Agriculture (USDA) has finalized an amendment to the regulations governing its federal Multi-Family Housing (MFH) Direct Loans and Grants Programs. This amendment requires borrowers participating in the Section 515, 514, and 516 Multi-Family Housing programs to provide residents with at least 30 days’ notice before terminating a lease or initiating eviction actions due to nonpayment of rent. RHS asserts that this statutory requirement has been in effect since the CARES Act was enacted in March 2020, and it is not restricted to periods of national emergency.
Under the final rule, multifamily borrowers (but again, ONLY those with USDA Loans) that are covered must provide:
- Notice of how to cure the nonpayment of rent violation.
- Information on how the resident can recertify their income.
- Information provided by the Secretary of Agriculture during a presidential declaration of a public health emergency regarding federal funding for tenants to prevent eviction.
Compliance with the provisions of this rule is required starting April 24, 2025, which is the rule’s effective date. Housing providers should also be aware of the upcoming compliance date for lease changes. The RHS will consider MFH borrowers noncompliant if they do not include the 30-day notice requirements in lease agreements by September 25, 2025.
More information can be found here.
