24 CFR § 246.12 - Preemption of prospective term of lease.
---
identifier: "/us/cfr/t24/s246.12"
source: "ecfr"
legal_status: "authoritative_unofficial"
title: "24 CFR § 246.12 - Preemption of prospective term of lease."
title_number: 24
title_name: "Housing and Urban Development"
section_number: "246.12"
section_name: "Preemption of prospective term of lease."
chapter_name: "OFFICE OF ASSISTANT SECRETARY FOR HOUSING—FEDERAL HOUSING COMMISSIONER, DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT"
subchapter_number: "B"
subchapter_name: "MORTGAGE AND LOAN INSURANCE PROGRAMS UNDER NATIONAL HOUSING ACT AND OTHER AUTHORITIES"
part_number: "246"
part_name: "LOCAL RENT CONTROL"
positive_law: false
currency: "2026-03-24"
last_updated: "2026-03-24"
format_version: "1.1.0"
generator: "[email protected]"
authority: "12 U.S.C. 1715b; 42 U.S.C. 3535(d)."
cfr_part: "246"
---
# 246.12 Preemption of prospective term of lease.
(a) In those instances where it will take more than 60 days (2 months) for the project to reach the new income levels, HUD preemption of prospective lease terms shall be effective for those new or renewed leases which by regulation of a local rent control board would require the mortgagor to offer a lease for a term in excess of one year.
(b) As a condition for HUD preemption, the mortgagor must give only one-year leases to tenants whose leases expire during the preemption period.