HUD’s New PRWORA Interpretation: What It Means for HUD CPD Programs

HUD’s New PRWORA Interpretation: What It Means for HUD CPD Programs

Reinterpreting 1990’s “Personal Responsibilities Act” – PRWORA

What It Means for HOME, HTF, CDBG, ESG, CoC, and HOPWA Programs

Understanding How HUD’s Federal Public Benefit Interpretation Could Impact Future Eligibility Rules

On November 26, 2025, the U.S. Department of Housing and Urban Development (HUD) published a notice in the Federal Register announcing a new interpretation of the Personal Responsibility and Work Opportunity Reconciliation Act of 1996 (PRWORA). PRWORA limits access to a “federal public benefit” for non-qualified immigrants unless an exception applies.

HUD’s notice does not change current rules, but it signals how the agency may approach future eligibility restrictionsfor several major HUD programs—including HOME, HTF, CDBG, ESG, CoC, and HOPWA.

TL;DR: Quick Q&A

Q: Do owners, agents, or service providers need to start verifying immigration status for HOME, HTF, CDBG, ESG, CoC, HOPWA, PRO Housing, or Section 108 participants?

A: No.
This notice is interpretive only. HUD is saying it now views these programs as “federal public benefits” under PRWORA—but no new eligibility requirements have been created. HUD must complete full APA rulemaking before any citizenship or immigration restrictions can be enforced.

What Does the New HUD Notice Actually Do?

HUD’s notice identifies the following programs as “federal public benefits” under PRWORA:

  • HOME Investment Partnerships Program

  • HOME-ARP

  • Housing Trust Fund (HTF)

  • Community Development Block Grants (CDBG)

  • Emergency Solutions Grants (ESG)

  • Continuum of Care (CoC) Program

  • Housing Opportunities for Persons With AIDS (HOPWA)

  • Section 108 Loan Guarantee Program

  • PRO Housing

This interpretation signals HUD’s intent to lay the foundation for future immigration or citizenship restrictions, even though many beneficiaries of these programs do not receive a direct federal rental subsidy.

Important:
This notice does not change eligibility for any program. It cannot impose new rules without undergoing the legally required rulemaking process.

APA Rulemaking Is Required Before Any Eligibility Changes Can Occur

To impose citizenship or immigration requirements on these programs, HUD must complete the Administrative Procedure Act (APA) rulemaking process. That process includes:

  1. Drafting a proposed rule in consultation with the Department of Homeland Security

  2. Publishing the proposed rule in the Federal Register

  3. Allowing a public comment period (typically 30–60 days)

  4. Reviewing all comments and responding to major issues

  5. Publishing a final rule

Because citizenship/immigration restrictions are a substantive change, HUD cannot rely on the APA’s “good cause” exception to bypass public comment. It would be extremely difficult for HUD to argue that standard rulemaking is “impractical, unnecessary, or contrary to the public interest.”

Historical Perspective: How Citizenship Requirements Were Added to Section 8

The potential path forward for HOME, HTF, CDBG, ESG, CoC, and HOPWA may resemble the multi-year process used for Project-Based Section 8:

  • 1980: Congress enacts Section 214 of the Housing and Community Development Act, restricting rental assistance to U.S. citizens, U.S. nationals, and certain eligible noncitizens.

  • 1994: HUD drafts preliminary rules and forms.

  • 1995: HUD establishes a “benchmark date” for existing tenants.

  • 1996: HUD publishes the proposed rule in April.

  • 1997: HUD issues the final rule.

This historical timeline demonstrates that adding immigration requirements to housing programs is typically a multi-year process.

What Should Stakeholders Do Now?

While no changes take effect immediately, owners, PHAs, service providers, and community partners should begin preparing by:

  • Monitoring all future HUD guidance closely

  • Expecting formal rulemaking in the coming years

  • Planning to submit public comments when HUD publishes its first proposed rule affecting these programs

For ongoing updates, consider subscribing to the U.S. Housing Consultants Newsletter or other industry communications to stay ahead of emerging compliance changes.

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