HUD Notice 12-28: Extension of Housing Notice H 2011-31: Policy for Treatment of Proceeds Resulting from the Sale of FHA-insured or Secretary-Held formerly Insured Multifamily Projects by Nonprofit Owners
Issued: Noverber 21, 2012
Expires: This notice remains in effect until amended, superseded or rescinded.
Housing Notice H 2011-31 was issued on November 10, 2011, with an expiration date of November 30, 2012. This Notice is hereby extended and remains in effect until amended, superseded, or rescinded.
Download HUD Notice 12-28 here: http://portal.hud.gov/huddoc/12-28hsgn.pdf
HUD Notice 12-25: Policy for Amended and Restated Use Agreement for Multifamily Projects Subject to the Low-Income Housing Preservation and Resident Homeownership Act of 1990 (LIHPRHA)
Issued: November 21, 2012
Expires: This notice remains in effect until amended, superseded, or rescinded.
This Notice provides guidance on the circumstances under which HUD may consider amendments to Use Agreements for properties assisted under the Low-Income Housing Preservation and Resident Homeownership Act of 1990 (LIHPRHA). Amendments may be considered for the purpose of incentivizing and facilitating prepayment and refinance or acquisition transactions to preserve the viability of these affordable properties. This Notice clarifies the circumstances under which a Use Agreement for a LIHPRHA property may be amended, the amendments that may be allowed, and the conditions that must be met in the proposed preservation transaction to be considered for approval.
During the 1960s and 1970s, HUD worked with profit-motivated and nonprofit Owners to finance thousands of properties under an array of mortgage insurance programs, including Section 221(d)(3) and Section 236 of the National Housing Act. Many of these projects obtained rental assistance contracts under Section 8 of the United States Housing Act, or through the Rent Supplement or Rental Assistance Payment (RAP) programs.
FHA mortgage insurance under Sections 221(d)(3) and 236 was typically for 40 years, and typically gave the Owners the option to prepay the FHA-insured mortgage after 20 years. As a result of the prepayment, the Owner could convert the project to market rate housing. This option provided a powerful incentive for Owners to prepay the FHA-insured mortgage, particularly if the property had appreciated in value and was located in a desirable neighborhood, enabling the owner to realize considerable profits.
Owners with Section 221(d)(3) and Section 236 properties first became eligible to prepay their mortgages in the early 1980s. During this period, the Department faced two major preservation challenges: the maturity and/or prepayment of federally-insured mortgages; and the concurrent expiration of Section 8 project-based rental assistance contracts. During the 1980s, these events caused hundreds of thousands of apartments to convert from assisted to market rate housing.
The federal government implemented several strategies to preserve the subsidized stock and keep units affordable for residents. One notable strategy was the Low-Income Housing Preservation and Resident Homeownership Act (LIHPRHA). *Additional background information is provided in the full notice.
This Notice applies to all properties that received incentives under the Low-Income Housing Preservation and Homeownership Act of 1990 (LIHPRHA) and have a recorded LIHPRHA Use Agreement. It provides guidance for consideration of Owner requests to amend LIHPRHA Use Agreements.
Some LIHPRHA project Owners may also be requesting approval for mortgage prepayment or Interest Reduction Payment (IRP) decoupling. This Notice does not alter the existing policies or process for Owners to request approval for prepayment of mortgages or IRP decoupling.
Nonprofit Owners of LIHPRHA projects participating in a sale/acquisition transaction and seeking release of sales proceeds must adhere to the requirements of Housing Notice 2011-31. All requirements of Notice 2011-31 will apply in such cases, except that the duration of the project Use Agreement will remain as the useful life of the project. Nonprofit Owners seeking to refinance and amend the LIHPRHA Use Agreement must also follow this Notice.
This Notice also applies to properties subject to a Use Agreement under the Emergency Low Income Housing Preservation Act (ELIPHA). ELIPHA properties are subject to similar restrictions as LIHPRHA projects, but the Use Agreements under ELIPHA expired on the maturity date of the original FHA-insured or HUD-Held mortgage. Most ELIPHA Use Agreements have therefore recently expired or will expire in the near future. Because the expiration of ELIPHA Use Agreements is imminent, it is unlikely that Owners will desire an amendment to an ELIPHA Use Agreement. However, HUD will consider requests for amendments of ELIPHA Use Agreements that meet the requirements of this Notice. Where the Notice makes reference to LIHPRHA Use Agreements, it also applies to ELIPHA Use Agreements.
Download HUD Notice 12-25 here: http://portal.hud.gov/huddoc/12-25hsgn.pdf
HUD Notice 12-20: Underwriting Instructions for Projects Converting Assistance as part of the Rental Assistance Demonstration (RAD) Program
Issued: October 11, 2012
Expires: This notice remains in effect until amended, superseded or rescinded.
This Notice provides underwriting guidelines for Multifamily Accelerated Processing(MAP) lenders applying for FHA multifamily mortgage insurance on transactions involving properties converting rental assistance under the Department's Rental Assistance Demonstration Program (RAD). RAD was launched under Public and Indian Housing (PIH) Notice 2012-32 on July 26, 2012. This NOTICE addresses underwriting criteria, eligibility requirements, application exhibits and the process for HUD application review when an FHA insured mortgage is proposed for a project converting assistance under RAD.
RAD provides the opportunity to test the conversion of public housing and other HUD assisted (Rent Supplement, Rental Assistance Payment and Section 8 Moderate Rehab) properties to long-term, Project-Based Section 8 rental assistance to achieve certain goals, including the preservation and improvement of these properties through access by Public Housing Agencies (PHAs) and owners to private debt and equity to address immediate and long-term capital needs. RAD is also designed to test the extent to which residents have increased housing choices after the conversion, and the overall impact on the subject properties.
Many public housing properties have significant capital needs, and due to program restrictions, have not had flexibility to obtain public and private debt and equity to make needed repairs and renovations. Additionally, Rent Supplement (Rent Supp), Rental Assistance Payment (RAP), and Section 8 Moderate Rehabilitation (Mod Rehab) properties have not had the ability to obtain long-term Section 8 rental assistance contracts. These properties have expiring contracts that put at risk the rental assistance for residents, as well as the viability of the projects as affordable housing. Properties that participate in RAD may convert public housing or Mod Rehab assistance to Section 8 Project-Based Rental Assistance (PBRA) contracts, or may convert public housing, Rent Supp/RAP, or Mod Rehab assistance to Section 8 Project Based Voucher (PBV) assistance. PHAs and private owners of Rent Supp, RAP or Mod Rehab properties may then leverage the PBRA or PBV assistance contract to attract new financing.
RAD has two separate components:
- First component: projects funded under the public housing and Mod Rehab programs may convert their assistance to long-term, project-based Section 8 rental assistance contracts. Under this component of RAD, PHAs and Mod Rehab owners may choose between two forms of Section 8 Housing Assistance Payment (HAP) contracts: PBVs or PBRA. PHAs and Mod Rehab owners will convert their assistance at current subsidy levels. The 2012 Appropriations Act authorizes up to 60,000 units to convert assistance under this component, to be selected competitively. This component of RAD is authorized through Fiscal Year (FY) 2015, unless the cap is reached sooner, with the first applications accepted between September 24, 2012 and October 24, 2012, and initial selections anticipated shortly thereafter.
- Second component: owners of projects funded under the Rent Supp, RAP and Mod Rehab programs may convert the funding for tenant protection vouchers (TPVs) that would otherwise be provided as tenant-based assistance (or has been provided as tenant based assistance, in certain cases) to PBVs, upon contract expiration, or, for owners of Rent Supp and RAP projects, termination of the contract, occurring after October 1, 2006 and no later than September 30, 2013. While there is no cap on the number of units that can convert assistance under this component of RAD, and no requirement for competitive selection, actions under this component are subject to the availability of TPVs. For projects with contracts expiring on or before September 30, 2013, this component of RAD is already underway, with RAD requests made on a rolling basis. In the 4th quarter of Fiscal Year 2013, HUD will consider conversions of contracts expiring in 2014 or later, subject to the availability of tenant protection voucher funding.
FHA multifamily mortgage insurance is an important source of debt financing for projects participating in RAD. Underwriting of public housing, Mod Rehab, Rent Supp and RAP properties with PBV or PBRA assistance under RAD will mirror the underwriting of other properties assisted with Section 8 PBV or PBRA assistance. HUD endorses many transactions each year involving the acquisition, refinance and rehab of PBRA or PBV-assisted projects. However, HUD is making certain allowances for processing RAD transactions that utilize FHA insured debt to accommodate and expedite these transactions, as described.
Download HUD Notice 12-20 here: http://portal.hud.gov/huddoc/12-20hsgn.pdf
HUD Notice 12-14: Use of "New Regulation" Section 8 Housing Assistance Payments (HAP) Contracts Residual Receipts to Offset Project-Based Section 8 Housing Assistance Payments
Issued: August 3, 2012
Expires: This notice remains in effect until amended, revoked or superseded.
When Owner distributions of surplus cash are limited or prohibited and when HUD determines that project funds are more than the amount needed for project operations, reserve requirements, and any permitted distributions, the excess income is typically required under the applicable new regulation 1 and/or the Section 8 Housing Assistance Payments (HAP)contract to which the project is subject to be deposited into an interest-bearing account, often called the Residual Receipts account, to be used for project purposes. This account (or accounts in cases where these monies are deposited in multiple accounts), however titled or designated, is referred to throughout this Notice as the "Residual Receipts" account. The contents of this account, however titled or designated, are referred to throughout this Notice as "Residual Receipts." The new regulation and/or the various HAP contract forms used for new regulation projects explicitly permit HUD to use Residual Receipts to reduce housing assistance payments. (See 24 CFR §§ 880.205(e), 881.205(e), and 883.306(e)).
This Notice sets forth the policy and procedures for the Department's use of new regulation Residual Receipts to offset housing assistance payments for projects subject to a new regulation Project-Based Section 8 HAP contract and outlines the obligations and duties of Owners and the responsibilities of HUD Field staff in processing and monitoring the use of this project resource.
Although Section 8 Project-Based Rental Assistance (PBRA) was funded in the Fiscal Year 2012 budget at levels sufficient for the Department to continue full funding of all contracts, the Department is committed to achieving savings in order to slow the growth of PBRA expenditures and to effectively manage the account within appropriated levels. This policy change will produce PBRA savings, constrain future expenditures, and ensure the long-term stability and availability of PBRA for all program participants.
III. Applicability and Implementation
- This Notice applies to all projects that are subject to a new regulation Project-Based Section 8 HAP contract. Applicability includes Section 8 New Construction/Substantial Rehabilitation projects subject to 24 CFR§§880.205, 881.205, or 883.306, and projects that are subject to both a Section 202 Direct Loan and a new regulation Section 8 HAP contract.
- This Notice does not apply to Section 202 and Section 811 projects with Project Rental Assistance Contracts (PRACs) and Project Assistance Contracts (PACs).
- This Notice will be effective with vouchers submitted 60 days after issuance of this Notice.
Download Notice 2012-14 here: http://portal.hud.gov/huddoc/12-14hsgn.pdf
HUD Notice 2012-10: Guidelines for Assumption, Subordination, or Assignment of Mark-to-Market (M2M) Loans in Transfer of Physical Assets (TPA) and Refinance Transactions
Issued: May 9, 2012
Expires: This notice remains in effect until amended, revoked or superseded.
This Notice updates and restates HUD's guidelines dated September 30, 2010, issued through Housing Notice 10-22, "Guidelines for Assumption, Subordination, or Assignment of Mark-to-Market (M2M) Program Loans in Transfer of Physical Assets (TPA) and Refinance Transactions" (Guidelines). The Guidelines apply to any request (Request) to assume and/or subordinate a loan evidenced by a Note (defined below) originated under M2M, or its predecessor program, the Portfolio Reengineering Demonstration Program (Demonstration or Demo Program), and to waive the due on sale or refinance clause contained therein. The Guidelines also apply to any Request to provide Debt Relief (assignment, modification or forgiveness) with respect to a Note originated under the M2M program. The Guidelines contained in this Notice are effective immediately for all such transactions.
This Notice outlines a request process and review criteria for owners who seek to refinance or sell a property (Property) that has received the benefits of a debt restructuring under M2M or the Demonstration Program. Loans originated under those programs are evidenced by a Mortgage Restructuring Note (MRN), a Contingent Repayment Note (CRN), or a Demo Note (as further defined below), that will be assumed and/or subordinated in the proposed transaction. The Notice also applies when HUD evaluates requests for debt assignment, modification or forgiveness (Debt Relief) with respect to an MRN or CRN for a qualifying nonprofit purchaser. All requests may be approved, rejected or modified by HUD. This Notice only applies if the MRN, CRN, or Demo Notes will not be paid in full at the consummation of the sale or refinance of the Property, and if HUD is the holder of the MRN, CRN, or Demo Note(s). Capitalized terms may be further defined below.
This Notice makes the following updates to Housing Notice 10-22:
- Removes the so-called "three-year policy" for qualified non-profit purchasers to request Debt Relief upon acquisition of M2M restructured properties.
- Specifies the review criteria for determination of preservation needed for the Office of Affordable Housing Preservation's (OAHP) approval for Debt Relief.
- Adds additional considerations for preservation projects meeting certain criteria, including treatment of developer fees in preservation transactions, and treatment of incentive fees in green rehabilitation transactions.
- Removes the use of Makeup Payments: Transactions will not be approved if they will result in the reduction of the net present value of the MRNs, CRNs, and Demo Notes; and
- Refines and adds defined terms.
Download Notice 2012-10 here: Notice H 2012-10 (242 KB Adobe PDF File)
HUD Notice 2012-8: Updated Requirements for Prepayment and Refinance of Section 202 Direct Loans
This Notice provides guidance for the prepayment and refinancing of Section 202 Direct Loan projects. This Notice supersedes all outstanding policy regarding Section 202 Direct Loan prepayments, including Housing Notice 02-16 and Housing Notice 10-14.
General authority for the prepayment of a Section 202 Direct Loan is provided by Section 811 of the American Homeownership and Economic Opportunity (AHEO) Act of 2000, as amended, and by 24 CFR 891.530. The Section 202 Supportive Housing for the Elderly Act of 2010 ("the 2010 Act")(Public Law 111-372), signed into law on January 4, 2011, made significant changes to Section 811 of AHEO and, as a result, to policy governing the prepayment of Section 202 Direct Loans.
The Section 202 Supportive Housing for the Elderly program provides rental housing to households in which the head of household is aged 62 and above. Over the 50 year history of the Section 202 program, the system of providing financing shifted from loans to grants, and the population served changed from moderate-income elderly households to very low-income elderly households. The program has also shifted from serving elderly households, to serving elderly and disabled households and returning to serving elderly households exclusivelyâ€¦
Download Notice 2012-8 here: Notice H 2012-8 (223 KB Adobe PDF File)
HUD Notice H 2012-3: Guidance on Eligibility for Tenant Protection Vouchers Following Certain Housing Conversion Actions
Issued: February 24, 2012
Expires: February 28, 2013
The Office of Multifamily Housing oversees thousands of properties supported by a range of insured and Direct Loans, including Section 236, Section 221(d)(3), Section 202, and Section 221(d)(4) mortgages. In addition, the Office of Multifamily Housing has oversight of rental assistance provided under rental assistance contracts, including the project-based Section 8 Housing Assistance Payments (HAP) Program, the Rent Supplement Payments Program (Rent Supplement) and the Rental Assistance Program (RAP). Many properties are reaching the end of their original mortgage term, and rental assistance contracts are also reaching expiration. Residents may be eligible for Tenant Protection Vouchers (TPVs) in certain scenarios related to mortgage prepayment, contract termination or expiration.
Many Owners, tenants, and other stakeholders seek updated information from HUD on the applicability of TPVs for residents of HUD-assisted or HUD-insured properties following various actions related to the mortgage or rental assistance contract. This Notice supplements the Office of Public and Indian Housing (PIH) Notice 2001-41. It describes the features of TPVs and the eligibility criteria for households to receive TPVs in different scenarios. The Notice implements certain authorities set forth in the Department of Housing and Urban Development Appropriations Act, Fiscal Year 2012 (— 2012 Appropriations Act ||) (P.L. 112-55, 125 Stat. 552).1 Please note that, by law, the provision of TPVs is subject to the availability of appropriations. While provision of certain TPVs issued following a qualifying mortgage prepayment or Opt-Out are mandatory, subject to the availability of appropriations, HUD also has discretionary authority to provide TPVs in other circumstances, such as Rent Supplement or Rental Assistance Payment (RAP) contract terminations and Section 202 Direct Loan prepayments. HUD reserves the right to prioritize provision of discretionary vouchers in a particular fiscal year to protect tenants deemed most at risk of displacement due to an eligibility event. This Notice does not implement the new language in the 2012 Appropriations Act which sets aside $10 million from the $75 million appropriation for provision of TPVs to new categories of eligible households, including households impacted by maturing mortgages.2 The provision related to the new TPVs to be issued under the $10 million set-aside will be implemented through distinct guidance separate from this Notice.
Download a copy of the notice: Notice H 2012-3 (90 KB Adobe PDF File)
HUD Notice H 2012-1: Multifamily Low Income Housing Tax Credit Pilot Program
Issued: February 3, 2012
Expires: February 28, 2013
This Housing Notice (HN) launches a pilot program (the Tax Credit Pilot or Pilot), mandated by the Housing and Economic Recovery Act of 2008, Public Law 110-289, in subtitle B of Title VIII, cited as the Housing Tax Credit Coordination Act of 2008 (HERA), to streamline FHA mortgage insurance applications for projects with equity from the Low Income Housing Tax Credit (LIHTC) program. The Tax Credit Pilot creates a distinct application platform and a separate processing track under the Section 223(f) program. This HN describes the features of the Tax Credit Pilot, including underwriting criteria, eligibility requirements, application exhibits and the process for HUD application review. This HN also extends the 3-year rule waiver (ML 2011-13) for 1 year beyond its current February 2012 expiration date for tax credit projects that participate in the Pilot program, as more fully detailed in Section IV, A(1)(a), below.
Download a copy of the notice: Notice H 2012-1 (98 KB Adobe PDF File)
HUD Notice 2011-18: Updated Processing Guidance for the Section 202 Supportive Housing for the Elderly and Section 811 Supportive Housing for Persons with Disabilities Programs
The Department has developed some revised procedures pertaining to processing activities after selection of Section 202 and Section 811 applications for fund reservations including mixed-finance transactions. The Notice is divided into three parts. The first part addresses general issues that concern all Section 202 and Section 811 proposals in which the Owner has not submitted a firm commitment application. The second and third parts of this Notice specifically address mixed-finance transactions. Section 202 and Section 811 applications that have started firm commitment processing shall proceed to initial closing and start of construction based on administrative instructions in place before the issuance of this Notice.
Follow the link to learn more:
HUD Notice 2011-30: Use of Reserve for Replacement Accounts in Restructured Mark-to-Market (M2M) Properties
Summary: The notice specifies special requirements governing the use of the Reserve for Replacements account that arise from the Mark-to-Market (M2M) program restructuring of a HUD Multifamily property's debt and rents. The notice also provides additional guidance on how the Reserve for Replacements account must be used for such properties that have completed a restructuring under M2M. In general, owners of M2M restructured properties are required to utilize the Reserve for Replacements account as the primary source for capitalized expenses, due to specific M2M requirements, as outlined in the notice.
Purpose: General guidance on the use of the Reserve for Replacements account in multifamily properties can be found in Chapter 4 of Handbook 4350.1 REV-1; however, there are special requirements governing the use of the Reserve for Replacements account that arise from the Mark-to-Market (M2M) program restructuring of a property's debt and rents. This Notice provides additional guidance on how the Reserve for Replacements account must be used for properties that have completed a restructuring under M2M. Guidance for multifamily FHA-insured properties not subject to M2M restructurings will be issued separately. In general, owners of M2M restructured properties are required to utilize the Reserve for Replacements account as the primary source for capitalized expenses. This is due to specific M2M requirements:
- 1) Multifamily Assisted Housing Reform and Affordability Act (MAHRA), requires HUD to fund the reserve accounts (both initially and annually) during restructuring so as to maintain the property in good order over the next 20 years.
- 2) The restructuring plan negotiated with the owner establishes monthly contributions to the reserve account and requires a percentage of surplus cash that remains thereafter, on an annual basis, to be available as payment on the M2M HUD-held surplus cash notes called Mortgage Restructuring Notes ("MRNs") and contingent repayment notes ("CRNs").
The MRNs (and CRNs) represent the statutorily prescribed debt that HUD expects to be repayable from net project income, in exchange for paying out substantial partial payments of claims from the FHA insurance fund, to provide the cash necessary to complete the M2M restructuring process on behalf of that property owner.
Follow the link to learn more:
HUD Notice 2011-31: Policy for Treatment of Proceeds Resulting from the Sale of FHA-insured or Secretary-held formerly insured Multifamily Projects by Nonprofit Owners
This Notice provides guidance and clarifications on the Department's policy regarding the use of sale proceeds from a multifamily project sold by a Nonprofit Owner that has an FHA-insured or Secretary-held formerly FHA-insured mortgage. Many Nonprofit Owners of projects that have FHA-insured or Secretary-held, formerly FHA-insured mortgages are selling their properties to purchasers who will maintain the long-term affordability of the project. This Notice clarifies the circumstances under which Nonprofit Owners may retain the proceeds from the sale of a project, and the processing oversight that will be provided by HUD.
Follow the link to learn more:
Notice H 2011-05: Policies and Procedures for the Deferred Repayment of Operating Assistance Flexible Subsidy Loans
Notice H 2011-05 specifies HUD's policies and procedures for approving an owner's request to defer repayment of an Operating Assistance Flexible Subsidy Loan (including HELP Loans) in conjunction with a mortgage prepayment, mortgage expiration, mortgage insurance termination, or the sale of a project. Approval of deferred repayment of Operating Assistance Flexible Subsidy Loans, sometimes referred to as Flexible Subsidy Loans, requires a waiver by the Assistant Secretary for Housing, the Federal Housing Administration (FHA) Commissioner.
Download a copy of the notice: Notice H 2011-05 (169 KB Adobe PDF File)
Checklist for program center review:
Checklist for Program Center Review – Appendix 1 (160 KB Adobe PDF File)
Waiver request memorandum:
Waiver Request Memorandum – Appendix 2 (16 KB Adobe PDF File)
Waiver approval memorandum:
Waiver Approval Memorandum – Appendix 3 (89 KB Adobe PDF File)
Notice H 2011-03: Policies and Procedures for the Conversion of Efficiency Units to One-Bedroom Units
Notice H 2011-03 details HUD's policies for converting efficiency units to one-bedroom units in certain types of HUD-assisted and/or insured housing. Under this notice, Hubs and Program Centers are responsible for reviewing requests to convert units. However, Hub Directors may approve conversion requests within their jurisdictions if the proposals conform to the notice's requirements. Although the policy outlined in this Housing notice solely addresses the conversion of efficiency units into one-bedroom units, HUD will continue to consider conversion requests for other unit types on a case-by-case basis.
Download a copy of the notice:
Notice H 2011-03 (170 KB Adobe PDF File)
Notice H 2010-26: Subordination of Section 202 Direct Loans
Notice H 2010-26 establishes policy and procedures for the review of requests to subordinate Section 202 direct loans ONLY in cases where refinancing these loans under Notice H 04-21 (Post-1974 Section 202 Projects) is not feasible. Subordination of a Section 202 direct loan may, under certain circumstances, provide benefits to both the Department and its industry partners in the preservation of low and moderate-income elderly housing.
Download a copy of the notice: NOTICE 2010-26 (68 KB Adobe PDF File)
Notice H 2010-22: Guidelines for Assumption, Subordination, or Assignment of Mark-to-Market (M2M) Program Loans in Transfer of Physical Assets (TPA) and Refinance Transactions
Notice H 2010-22 amends and restates HUD's draft Guidance dated June 2006, titled "Draft Policy for Assumption and Subordination of Mark-to-Market ("M2M") Notes in Transfer of Physical Assets ("TPA") Transactions." The Guidelines outlined in this Notice apply to any Request to assume, subordinate, and/or assign a loan evidenced by a Note (defined below), and to waive the due-on-sale or refinance clause contained therein. This Guidance also applies to Requests to assume and/or subordinate loans originated under M2M's predecessor program, the Portfolio Reengineering Demonstration Program ("Demonstration Program"). The Guidelines contained in this Notice are effective immediately for all such transactions.
The Guidance outlines a request process and review criteria for owners who wish to refinance or sell a property ("Property") that has received the benefits of a debt restructuring under M2M or the Demonstration Program, and where the loans evidenced by a Mortgage Restructuring Note ("MRN"), and/or a Contingent Repayment Note ("CRN"), or a Demo Note (all as further defined below), will be assumed and/or subordinated, or where HUD will approve debt assignment, modification or forgiveness with respect to a MRN and/or CRN to a qualifying nonprofit purchaser. These requests may be approved, rejected or modified by HUD in its sole discretion. To initiate the process, owners and purchasers would submit a request for waiver of the due-on-sale or refinance clause ("Request"). In response to the Request, OAHP will provide owners and purchasers with a checklist, which must be filled out and returned to OAHP.
Download a copy of the notice: Notice H 10-22 (157 KB Adobe PDF File)
Notice H 2010-17: Revised Procedures for Requesting Inspections from Real Estate Assessment Center
Notice H 2010-17 expands on the revisions for servicing properties with physical condition scores below 60 that were announced in Notice H 2010-041. Specifically, this Notice delegates the authority to order certain special purpose physical inspections from the Real Estate Assessment Center (REAC) to the Hub Director or his or her designee2.
Download a copy of the notice: Notice H 2010-17 (103 KB Adobe PDF File)
1 - Notice H 2010-04, captioned, "Revised Protocol for Placing Flags in the Active Partners Performance System (APPS) When a Property Receives a Physical Inspection Score Below 60 but Above 30" was issued on January 22, 2010. H 2010-04 expires on January 31, 2011. We will incorporate this guidance into that Notice when it is renewed.
2 - For simplicity, we will refer to the "Hub Director" throughout the remainder of the Notice instead of continually referring to "the Hub Director or his or her designee."
Notice H 2010-14: Policy and Procedure for Prepayment and Refinancing of Section 202 Projects Funded Prior to 1975
Notice H 2010-14 provides guidance for prepayments and refinancing of Section 202 Direct Loan projects funded prior to 1975 to help preserve elderly housing.
Download a copy of the notice: Notice H 2010-14 (231 KB Adobe PDF File)
Authorities: Authorities – Attachment 1 (69 KB Adobe PDF File)
Calculation of Project Benefits: Calculation of Project Benefits – Attachment 2 (401 KB Adobe PDF File)
Notice H 2010-11: HUD Multifamily Risk Mitigation
Notice H 2010-11 revises underwriting standards, policies and procedures for mortgage insurance under the Federal Housing Administration's (FHA's) Multifamily Housing programs. This Housing Notice is not applicable to the health care programs administered by the Office of Healthcare Programs (Section 232, or refinancing of Section 232 pursuant to Sections 223 (f) or 223 (a) (7)). The Notice will be effective 60 days from the date of issuance, as discussed below in the section titled "Implementation".
Download a copy of the notice: Notice H 2010-11 (265 KB Adobe PDF File)
Sample schedule of real estate owned:
Schedule of Real Estate Owned – Attachment A (158 KB Adobe PDF File)
Sample schedule of mortgage debt:
Schedule of Mortgage Debt – Attachment B (84 KB Adobe PDF File)