[Federal Register Volume 91, Number 37 (Wednesday, February 25, 2026)]
[Rules and Regulations]
[Pages 9135-9137]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2026-03716]
========================================================================
Rules and Regulations
Federal Register
________________________________________________________________________
This section of the FEDERAL REGISTER contains regulatory documents
having general applicability and legal effect, most of which are keyed
to and codified in the Code of Federal Regulations, which is published
under 50 titles pursuant to 44 U.S.C. 1510.
The Code of Federal Regulations is sold by the Superintendent of Documents.
========================================================================
Federal Register / Vol. 91, No. 37 / Wednesday, February 25, 2026 /
Rules and Regulations
[[Page 9135]]
DEPARTMENT OF AGRICULTURE
Rural Housing Service
7 CFR Part 3560
[Docket #: RHS-25-MFH-0167]
RIN 0575-AD52
Rescinding 30-Day Notification Requirements Related to Eviction
Based on Nonpayment of Rent in Multi-Family Housing Direct Properties
AGENCY: Rural Housing Service, Rural Development, U.S. Department of
Agriculture (USDA).
ACTION: Final rule.
-----------------------------------------------------------------------
SUMMARY: The Rural Housing Service (RHS or the Agency), an agency of
the Rural Development (RD) mission area within the U.S. Department of
Agriculture (USDA), is issuing this final rule to rescind the
regulatory requirement of the minimum 30-day notice for nonpayment of
rent before the start of eviction proceedings in Rural Housing Service
(RHS) Section 515 and 514 Multi-Family Housing (MFH) properties, and
the requirement for borrowers to provide Federal emergency funding
information during a Presidentially declared national emergency. The
final rule, ``30-Day Notification of Nonpayment of Rent in Multi-Family
Housing Direct Loan Programs'' (30-Day Notice Final Rule), effective on
April 24, 2024, introduced additional regulatory oversight for RHS MFH
properties that proved unnecessary because compliance with the
Coronavirus Aid, Relief, and Economic Security Act (CARES Act) 30 day
notice is generally captured by MFH project management requirements.
Additionally, the requirement for the borrower to disseminate
information on Federal funding available during a Presidentially
declared national emergency will be rescinded, as RHS will distribute
the associated information during such circumstances.
DATES: Effective Date: February 25, 2026.
FOR FURTHER INFORMATION CONTACT: Michael Resnik, Multi-Family Housing
Asset Management Division, Rural Housing Service, at
[email protected], 1400 Independence Avenue SW, Mail Stop 0782,
Washington, DC 20250-0782, or call (202) 720-1615.
Other Information: Additional information about Rural Development
and its programs is available on the internet at https://www.rd.usda.gov/.
SUPPLEMENTARY INFORMATION:
I. Background
The Coronavirus Aid, Relief, and Economic Security Act (CARES Act)
requires landlords of certain rental ``covered dwellings'' to provide
tenants with at least 30 days' notice before they must vacate the
property due to the nonpayment of rent. ``Covered dwellings'' are
defined as rental units that have a ``Federally backed multifamily
mortgage loan.'' See 15 U.S.C. 9058. Although properties receiving
assistance under Section 514, 515, or 516 are considered ``covered
dwellings,'' regulatory action and enforcement by individual agencies
was not required for implementation separate from the CARES Act. The
CARES Act 30-day notice requirement for nonpayment of rent is still in
effect for MFH properties regardless of whether the CARES Act wording
is specifically included in the MFH's regulation.
RHS is also confident the longstanding guidelines and regulations
in Section 515 and Section 514 MFH tenant recertification process,
which predate the 30-Day Notice Final Rule and the CARES Act, protect
its tenants from being evicted less than 30 days from receiving notice
of non-payment. These programs have effective tools to prevent eviction
based solely on the nonpayment of rent. Tenants with changes in
employment or other financial situations may file an interim income
certification with the borrower for an income change of $50 or more.
This allows the borrower to receive additional rental subsidy on behalf
of the tenant, when funding is available. While waiting for funding,
RHS finds that borrowers generally work with tenants on developing a
repayment plan when there is not an additional lease violation. This is
reflected in the fact that during 2024, total eviction levels among MFH
housing units averaged about 0.54 percent, with only 0.04 percent of
all evictions being due to only the nonpayment of rent.
In addition, the lease requirements for MFH properties must also
comply with State and local laws on eviction notice due to nonpayment
of rent. As 7 CFR 3560.5 sets forth, borrowers are required to comply
with state law so long as the state law requirement does not conflict
with 7 CFR part 3560. The 30-Day Notice Final Rule often caused
confusion between RHS regulation requirements and State rental lease
laws. Finally, the requirement for the borrower to disseminate
information on Federal funding available during a Presidentially
declared national emergency proved unduly burdensome. Due to the
existing tenant notification requirements on RHS MFH properties, RHS
determined that requiring the borrower to distribute funding
information was unnecessary. RHS will inform tenants when Federal
funding is available during a Presidentially declared national
emergency, where notifications are required.
II. Summary of Changes
Through this final rule, RHS is rescinding certain provisions from
its regulations found at part 3560 of title 7 of the Code of Federal
Regulations (CFR) (``Direct Multi-Family Housing Loans and Grants'').
Specifically, RHS is amending Sec. 3560.156 by revising paragraph
(c)(18)(xvi), ``Lease Requirements,'' to remove the required minimum
notice of 30 days. This rule will also remove Sec. 3560.159 paragraph
(a)(3) under ``Termination of Occupancy,'' to remove the 30-day minimum
notice and additional information including information as required by
the Secretary during a presidentially declared national emergency.
Finally, the rule will remove Sec. 3560.160 paragraph (c)(4) under
``Tenant Grievances,'' that also details the requirement to disseminate
information as required by the Secretary during a presidentially
declared national emergency.
III. Executive Orders/Acts
Executive Order 12372--Intergovernmental Consultation
These loans are subject to the provisions of Executive Order 12372,
[[Page 9136]]
which require intergovernmental consultation with State and local
officials. RHS conducts intergovernmental consultations for each loan
in accordance with 2 CFR part 415, subpart C.
Executive Order 12866 Regulatory Planning and Review
Not Significant: This final rule has been determined to be not
significant for the purposes of Executive Order 12866 and, therefore,
has not been reviewed by the Office of Management and Budget.
Executive Order 12988--Civil Justice Reform
This final rule has been reviewed under Executive Order 12988. In
accordance with this final rule: (1) unless otherwise specifically
provided, all State and local laws that conflict with this final rule
will be preempted; (2) no retroactive effect will be given to this
final rule except as specifically prescribed in the final rule; and (3)
administrative proceedings of the National Appeals Division of the
Department of Agriculture (7 CFR part 11) must be exhausted before
bringing suit in court that challenges action taken under this final
rule.
Executive Order 13132--Federalism
The policies contained in this final rule do not have any
substantial direct effect on States, on the relationship between the
National Government and the States, or on the distribution of power and
responsibilities among the various levels of government. Nor does this
final rule impose substantial direct compliance costs on state and
local governments. Therefore, consultation with the States is not
required.
Executive Order 13175--Consultation and Coordination With Indian Tribal
Governments
This final rule has been reviewed in accordance with the
requirements of Executive Order 13175, Consultation and Coordination
with Indian Tribal Governments. Executive Order 13175 requires Federal
agencies to consult and coordinate with Tribes on a government-to-
government basis on policies that have Tribal implications, including
regulations, legislative comments or proposed legislation, and other
policy statements or actions that have substantial direct effects on
one or more Indian Tribes, on the relationship between the Federal
government and Indian Tribes or on the distribution of power and
responsibilities between the Federal government and Indian Tribes.
Consultation is also required for any regulation that preempts Tribal
law or that imposes substantial direct compliance costs on Indian
Tribal governments and that is not required by statute.
The Agency has determined that this final rule does not, to our
knowledge, have Tribal implications that require formal Tribal
consultation under Executive Order 13175. If a Tribe requests
consultation, RHS will work with the Office of Tribal Relations to
ensure meaningful consultation is provided where changes, additions and
modifications identified herein are not expressly mandated by Congress.
Assistance Listing Number (Formally Known as the Catalog of Federal
Domestic Assistance)
10.415 Rural Rental Housing Loans.
Civil Rights Impact Analysis
Rural Development has reviewed this final rule in accordance with
USDA Regulation 4300-4, Civil Rights Impact Analysis, to identify any
major civil rights impacts the final rule might have on program
participants on the basis of age, race, color, national origin, sex,
disability, marital or familial status. Based on the review and
analysis of the final rule and all available data, issuance of this
final rule is not likely to negatively impact low and moderate-income
populations, minority populations, women, Indian Tribes or persons
disability, by virtue of their age, race, color, national origin, sex,
disability, or marital or familial status. No major civil rights impact
is likely to result from this final rule.
Congressional Review Act
Pursuant to the Congressional Review Act (5 U.S.C. 801 et seq.),
the Office of Information and Regulatory Affairs designated this final
rule as not a major rule, as defined by 5 U.S.C. 804(2).
E-Government Act Compliance
Rural Development is committed to the E-Government Act, which
requires Government agencies in general to provide the public the
option of submitting information or transacting business electronically
to the maximum extent possible and to promote the use of the internet
and other information technologies to provide increased opportunities
for citizen access to Government information and services, and for
other purposes.
National Environmental Policy Act
In accordance with the National Environmental Policy Act of 1969
(NEPA), 42 U.S.C. 4321-4347, as amended, this final rule has been
reviewed in accordance with 7 CFR part 1b. The Agency has determined
that (i) this action meets the criteria established in 7 CFR
1b.4(c)(31) and (ii) no extraordinary circumstances exist. These
findings require no documentation. Therefore, the Agency has determined
that the action does not have a significant effect on the human
environment, and therefore neither an Environmental Assessment nor an
Environmental Impact Statement is required.
Paperwork Reduction Act
This final rule contains no reporting or recordkeeping provisions
requiring Office of Management and Budget (OMB) approval under the
Paperwork Reduction Act of 1995 (44 U.S.C. Chapter 35).
Regulatory Flexibility Act
The final rule has been reviewed with regard to the requirements of
the Regulatory Flexibility Act (5 U.S.C. 601-612). The undersigned has
determined and certified by signature on this document that this final
rule will not have a significant economic impact on a substantial
number of small entities since this rulemaking action does not involve
a new or expanded program, nor does it require any more action on the
part of a small business than required of a large entity.
Severability
It is USDA's intention that the provisions of this final rule shall
operate independently of each other. In the event that this final rule
or any portion of this final rule is ultimately declared invalid or
stayed as to a particular provision, it is USDA's intent that the final
rule nonetheless be severable and remain valid with respect to those
provisions not affected by a declaration of invalidity or stayed. USDA
concludes it would separately adopt all of the provisions contained in
this final rule.
USDA Non-Discrimination Statement
In accordance with Federal civil rights laws and USDA civil rights
regulations and policies, the USDA, its Mission Areas, agencies, staff
offices, employees, and institutions participating in or administering
USDA programs are prohibited from discriminating based on race, color,
national origin, religion, sex, disability, age, marital status,
family/parental status, income derived from a public assistance
program, political beliefs, or reprisal or retaliation for prior civil
rights activity, in any program or activity conducted or funded by USDA
(not all bases apply to all programs).
[[Page 9137]]
Remedies and complaint filing deadlines vary by program or incident.
Persons with disabilities who require alternative means of
communication to obtain program information (e.g., Braille, large
print, audiotape, American Sign Language, etc.) should contact the
State or local Agency that administers the program or contact USDA
through the Telecommunications Relay Service at 711 (voice and TTY).
Program information may be made available in languages other than
English.
To file a program discrimination complaint, a complainant should
complete a Form AD-3027, USDA Program Discrimination Complaint Form,
which can be obtained online at https://www.usda.gov/sites/default/files/documents/ad-3027.pdf and at any USDA office or write a letter
addressed to USDA and provide in the letter all the information
requested in the form. To request a copy of the complaint form, call
(866) 632-9992. Submit your completed form or letter to USDA by:
a. Mail: U.S. Department of Agriculture, Office of the Assistant
Secretary for Civil Rights, 1400 Independence Avenue SW, Mail Stop
9410, Washington, DC 20250-9410; or
b. Fax: (202) 690-7442; or
c. Email: [email protected].
USDA is an equal opportunity provider, employer, and lender.
List of Subjects in 7 CFR Part 3560
Accounting, Administrative practice and procedure, Aged, Conflict
of interest, Government property management, Grant programs--housing
and community development, Insurance, Loan programs--agriculture, Loan
programs--housing and community development, Low and moderate-income
housing, Migrant labor, Mortgages, Nonprofit organizations, Public
housing, Rent subsidies, Reporting and recordkeeping requirements,
Rural areas.
For the reasons set forth in the preamble, the Rural Housing
Service amends 7 CFR part 3560 as follows:
PART 3560--DIRECT MULTI-FAMILY HOUSING LOANS AND GRANTS
0
1. The authority citation for part 3560 continues to read as follows:
Authority: 42 U.S.C. 1480.
Subpart D--Multi-Family Housing Occupancy
0
2. Amend Sec. 3560.156 by revising paragraph (c)(18)(xvi) to read as
follows:
Sec. 3560.156 Lease requirements.
* * * * *
(c) * * *
(18) * * *
(xvi) The procedures that must be followed by the borrower and the
tenant in giving notices required under terms of the lease, including
lease violation notices;
* * * * *
Sec. 3560.159 [Amended]
0
3. Amend Sec. 3560.159 by removing paragraph (a)(3).
Sec. 3560.160 [Amended]
0
4. Amend Sec. 3560.160 by removing paragraph (c)(4).
George Kelly,
Administrator, Rural Housing Service, USDA Rural Development.
[FR Doc. 2026-03716 Filed 2-24-26; 8:45 am]
BILLING CODE 3410-XV-P