NLHA wrote an information piece on HUDs new proposed “Establishing Flexibility for Implementation of Work Requirements and Term Limits.”

This proposed rule will officially publish in the Federal Register on March 2, 2026. The proposed rule offers public housing agencies and certain owners of multifamily housing the option to implement work requirements for work-eligible adults and term limits for non-elderly, nondisabled families residing in public housing or receiving assistance through Housing Choice Vouchers (HCV), Project-Based Vouchers (PBV), or Project-Based Rental Assistance (PBRA). Previously, this flexibility had been limited to Moving to Work PHAs.

HUD proposes to allow PHAs and owners to require work-eligible adults to engage in work activities for up to 40 hours per week and/or to impose term limits for households of no less than two years. PHAs and owners must offer supportive services to assist families with obtaining employment or engaging in work activities. HUD anticipates providing additional guidance on the types of funds that may be used for those services, but notes that HCV admin fees and PBRA project funds may not be used.

Comments regarding this proposed rule are due by May 1, 2026.

1. Electronic Submissions of Comments can be made through the Federal eRulemaking Portal at www.regulations.gov.

2. Via 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.