HUD’s Multifamily Housing Office Sends Post-Shutdown Memo

After the signing of the bill that temporarily ended the government shutdown on Jan. 25, HUD’s Office of Multifamily Housing Programs published a memo regarding the resumption of asset management activities. The memo identified the priorities the staff will have in tackling the backlog of work submitted during the shutdown period.

According to the memo, the first priority is work related to tenant health and safety, including contract renewals and subsidy payments. HUD is currently allocating new funding provided by the continuing resolution to support the renewal of expiring Section 8 Project Based Rental Assistance (PBRA), Section 202 Supportive Housing for the Elderly, and Section 811 Supportive Housing for Persons with Disabilities sites. In addition, the memo notes that additional funding is now available for ongoing Section 8 PBRA contracts to ensure timely payments through April 1.

For sites with expiring contracts for which renewals weren’t fully processed by Feb. 1, those properties with HUD-controlled reserves may request loans from reserve accounts in the interim, if necessary, says HUD. Requests may be sent to the assigned incoming field email box and must include a completed HUD-9250, the current balance in the account, the withdrawal amount, and a statement certifying that released funds will be reimbursed to the reserve account once payments are received.

The memo states that the second priority is related to external deadlines, such as servicing actions in connection with FHA closings, and property sales that require HAP assignment processing or 2540 clearance. If this is applicable to your site, your prioritization request to HUD should include the critical action, deadline, and potential consequences. Other requests, such as standard reserve for replacement withdrawals, will be processed in the order received.