Section 3.5: Occupancy Agreements

The S+C program regulations allow you considerable flexibility in developing occupancy agreements that may help ease participants' transition to the long-term housing and services offered by the local S+C project.

Similarly, HUD encourages program operators to work with participants to avoid circumstances that might lead to termination of rental assistance.

Elements of an Occupancy Agreement

  • Participants are not required to enter a long-term lease but must sign an initial occupancy agreement for a term of at least one month. This agreement is automatically renewable upon expiration, except on prior notice by either the tenant or the landlord.
  • At the discretion of the grantee or housing sponsor, participants may be required to take advantage of supportive services as a condition for obtaining the rental assistance. The requirements may be included in the lease or as a separate attachment.

Termination of Assistance

  • Rental assistance may be terminated if a participant violates conditions of occupancy.
  • Program regulations recommend, however, that grantees exercise judgment and take into consideration extenuating circumstances so that participants are only terminated for the most serious rule violations.
  • If termination is necessary, principles of due process must be followed. At a minimum, this process must include:
    - Written notice to the participant containing a clear statement of the reason for the termination;
    - A review of the decision, during which the participant has the opportunity to present written or verbal objections before someone other than the person (or a subordinate of the person) who made or approved the termination decision; and
    - Prompt written notice of the final decision to the participant.

The S+C Program permits grantees to resume assistance to persons or families whose assistance was previously terminated.


While the statutory purpose of S+C is to provide long-term housing connected to appropriate supportive services, S+C participants may be wary of entering a long-term housing arrangement and equally mistrustful of engaging in supportive services.