HUD has released a proposed rule (Federal Register Document No. 2026‑04095) that would give Multifamily Project‑Based Rental Assistance (PBRA) Owners the option to adopt new policies related to resident work requirements and term limits. These changes are intended to promote resident economic mobility and help expand access to affordable housing.

Below is a summary of the proposed updates and what they may mean for your property operations.

Summary of Key Proposed Changes

Optional Work Requirements PBRA Owners in good standing (not in contractual default) may adopt a policy requiring work‑eligible residents (ages 18–61) to participate in qualifying work activities.
This may include up to 40 hours per week of:

• Employment (subsidized or unsubsidized)
• Job training and vocational education
• Community service
• Job search or readiness activities
• Education (GED, secondary, or employment‑focused coursework)

Owners must:
• Update the Tenant Selection Plan (TSP)
• Add the policy to tenant leases
• Apply the policy consistently
• Provide a hardship exemption process
• Offer supportive services to help tenants meet requirements

Optional Term Limits

PBRA Owners may also elect to impose term limits of no fewer than two years for non‑elderly, non‑disabled households.

Requirements include:
• Prospective application only—time already spent in the unit does not count
• Mandatory notices:
– 3‑month notice before implementation
– 12‑month notice before the limit is reached
– 6‑month notice before the limit is reached
• Inclusion of policy in the TSP and leases
• Provision of supportive services to help households plan for transition

Supportive Services Requirement

If implementing either policy, Owners must provide or coordinate access to:
• Workforce development or job referrals
• Childcare resources
• Education or training opportunities
• Transportation assistance
• Financial counseling or coaching

These services cannot be funded using project operating funds.

What PBRA Owners Should Do Now

• Review the proposed rule in detail
• Consider whether these optional policies align with your operating goals
• Encourage staff to understand compliance, documentation, and service requirements
• Provide comments to HUD during the open comment period

How to Submit Comments

HUD encourages all stakeholders to provide input.

• Submit electronically: www.regulations.gov
• Reference docket: FR‑6520‑P‑01
• Submit by mail:
Regulations Division, Office of General Counsel
U.S. Department of Housing and Urban Development
451 7th Street SW, Room 10276
Washington, DC 20410‑0500

HUD Contact Information

For questions related to this proposed rule:

• Multifamily PBRA Contact:
Jennifer Larson, Director, Office of Multifamily Asset Management & Portfolio Oversight
(202) 402‑7769 (not toll‑free)