Is Heaven's Lost Property season 3 canceled or on hold? In 2013, they announced there would be a 3rd season for Heaven's Lost Property. Not too long after, they also announced the production crew, and a bit after that an on-hold notice. After that, I haven't been able to find any information about it.

Is it still on hold? Has it been canceled? Or something different altogether?
The third season has indeed been cancelled; instead it was replaced with a movie that has just recently come out. This is described by this ANN news article.

Sora no Otoshimono Final: Eternal My Maser



Quick Plot Summary / Overview: The scene opens with the Zeus' destruction above Synapse, Tomoki calls for Nymph to return immediately; unfortunately Ikaros responds that Nymph isn't coming. Tomoki commands Ikaros to take him straight to Synapse as the Earth's surface deliberately vanishes. While flying towards Synapse, Ikaros tells Tomoki a story how long ago due to malfunction she was once ordered by a "boy" to attack Synapse out of desperation. Remarking a dying Sugata, Ikaros' body begins burning away because of a device installed within her whenever she approaches Synapse without permission. Having second thoughts, Tomoki orders Ikaros to go back but cannot since there is nowhere else to go to.

(Source: http://soranootoshimono.wikia.com/wiki/Heaven%27s_Lost_Property_Final:_Eternal_My_Master)