HUD’s Office of Multifamily Housing Programs sent two memos to property owners, HUD offices, and lenders on February 1, one discussing the resumption of Multifamily asset management activities, the other discussing the resumption of Multifamily production activities.
The Multifamily asset management memo stated that the first priority of that office is work related to tenant health and safety, including contract renewals and subsidy payments. HUD is currently allocating new funding made available by the continuing resolution (which expires on February 15) to support renewal of expiring contracts for Section 8 Project-Based Rental Assistance (PBRA), Section 202 Supportive Hosing for the Elderly, and Section 811 Supportive Housing for Persons with Disabilities properties. In addition, HUD notes that additional funding is now available for ongoing Section 8 PBRA contracts to ensure timely payments through April 1.
HUD acknowledges that there are some properties with expiring contracts for which renewals might not be fully processed by February 1. If necessary, such properties with HUD-controlled reserves may request loans from reserve accounts in the interim.
The Multifamily production activities memo states that HUD’s first priority is to identify and prioritize work on loans that have been issued a firm commitment and are in a position to reach initial or final endorsement, meaning the complete closing package was submitted before December 21, 2018, with only minor corrections necessary to close. Of these, HUD’s priority will be loans that have critical external deadlines such as Low Income Housing Tax Credits, rate-lock extension fees, and purchase-sale agreements with substantial penalties.
The asset management memo is at: https://bit.ly/2Rzjfz8
The production activities memo is at: https://bit.ly/2Ghx7Mr