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HUD Revises Multifamily Handbook and Section 8 Renewal Guide

Dept. of Housing and Urban DevelopmentHUD’s Office of Multifamily Housing has issued two revised chapters for Handbook 4350.1, the “Multifamily Asset Management and Project Servicing,” Chapter 1.02 “Owner and Borrower Structures,” and Chapter 5.01 “Enforcement of Mortgagor Requirements.” HUD invites feedback by January, 18. In addition, Chapter 9 of the Section 8 Renewal Policy Guide has been substantially revised.

While Handbook 4350.1 is primarily for HUD Multifamily field staff who monitor owners and managing agents so that HUD-assisted projects are maintained in good physical and financial condition, the Handbook can be a useful reference for advocates as well. For instance, Chapter 5.01 reminds readers of statutory obligations such as compliance with: Use Agreements that contain rental use and/or affordability restrictions for some or all units in a project; REAC physical inspection requirements; and tenants’ right to establish and operate a legitimate tenant organization, distribute leaflets under tenant doors and in common areas, post information on bulletin boards, and convene regular meetings in a manner fully independent of property management. Chapter 5.01 also explains HUD enforcement actions should an owner not comply with requirements, such as seeking financial penalties for owners that violate the tenant organizing provisions.

The Handbook is being revised to incorporate current housing Notices and policy updates, mortgagee letters, and regulatory and statutory directives. HUD plans to release more chapter revisions on the Multifamily Drafting Table as they become available, eventually publishing each as an individual stand-alone chapter or as units of interrelated material. Five other chapters were released in November (see Memo, 11/4).

HUD’s Office of Multifamily Housing has also made substantial revisions to Chapter 9 of the Section 8 Renewal Policy Guide. This chapter provides guidance for creating rent comparability studies (RCSs) using a more market-based approach as part of the rent-setting mechanism under the Multifamily Assisted Housing Reform and Affordability Act (MAHRAA). The guidance will apply to any RCS signed by an appraiser on or after March 1, 2017.

The two revised chapters of Handbook 4350.1 are at:

Revised Chapter 9 of the Section 8 Renewal Policy Guide is at: