HUD's Jan. 4 letter to landlords, on the shutdown

In this letter from the Department of Housing and Urban Development seeks to blunt the impact of a lapse in funding for its multi-family programs, which were not renewed before the government shut down on Dec. 21. They are asking landlords to use their reserve accounts rather than evict their tenants.

U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
WASHINGTON, DC 20410-8000

OFFICE OF HOUSING

January 4, 2019
MEMORANDUM FOR:

FHA Multifamily Lenders

FROM:

Lamar Seats, Deputy Assistant Secretary, Office of Multifamily
Housing Programs

SUBJECT:

Impact of Government Shutdown on Multifamily FHA Mortgage
Insurance Applications and Production Activities

As you are aware, the partial government shutdown continues as the Department of
Housing and Urban Developmentas spending authority expired on Friday, December 21, 2018,
due to the lack of appropriated funding. Pending appropriations needed to operate, most FHA
Multifamily activities must cease for the duration of the shutdown. Separate guidance will be
issued with respect to Asset Management activities.
Excepted and intermittently available staff will be available for those activities which
affect life and safety, and for which binding obligations must be honored under the terms of their
contracts. During the first 30 business days of a shut down the following will apply:
aC/

Closings will be conducted for FHA Multifamily Initial Endorsements on projects with
Firm Commitments issued on or prior to December 21, 2018, that have a scheduled
closing during the shutdown period, and closings on Final Endorsements that have
critical external deadlines. Contact the Regional Production Division Director by e-mail
to confirm scheduled closing dates.

aC/

MAP Lenders servicing construction loans and administering non-critical repair escrows
may, at their and Ownersa and General Contractorsa risk, process interim construction
draws. Contract construction inspections which have been funded will be conducted.
HUD will perform or review construction inspections on a post-review basis at such time
the government re-opens.

aC/

No change orders will be processed or approved.

aC/

No applications for Multifamily FHA mortgage insurance will be accepted or
processed.

We apologize for the disruption in service and look forward to resuming normal
operations once government funding resumes. Please contact Pat Burke, Acting Director of MF
Production at patricia.m.burke@hud.gov if you have any questions about this memorandum.

www.hud.gov

espanol.hud.gov

U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
WASHINGTON, DC 20410-8000

OFFICE OF HOUSING

January 4, 2019
MEMORANDUM FOR:

Section 8 Property Owners, Project Rental Assistance Contract
(PRAC) Property Owners, and other Assisted Property Owners

FROM:

Lamar Seats, Deputy Assistant Secretary, Office of Multifamily
Housing Programs

SUBJECT:

Impact of Government Shutdown on Multifamily Asset
Management Activities

As you are aware, the partial government shutdown continues as the Department of
Housing and Urban Developmentas spending authority expired on Friday, December 21, 2018,
due to the lack of appropriated funding. Pending appropriations needed to operate, most asset
management activities must cease for the duration of the shutdown.
Excepted and Intermittent staff will be available for those activities which affect life and
safety, and for which binding obligations must be honored under the terms of contracts. During
the first 30 business days of a shutdown, the following activities will continue:
1. Making payments under Section 8 contracts, rent supplement contracts, Section 236
agreements, and Project Rental Assistance Contracts (PRAC) on an as needed basis to
ensure ongoing viability of assets and preservation of affordable housing. Payments
will be contingent on budget authority being available from prior year appropriations
or recaptures. Payments may require processing Section 8 and PRAC renewals for
expiring contracts and processing amendment funds for non-expiring Section 8
contract renewals.

Please note that HAP/PRAC payments from funds obligated prior to a shutdown
period are anticipated to occur without any major disruption.
Owners of properties with FHA insured mortgages or 202/811 Capital Advances may
submit requests for releases from their reserve for replacement accounts to cover
funding shortfalls caused by non-payment of monthly rental subsidy.
2.
3.
4.
5.

Process payments to PBCAs.
Continued management of HUD-owned and Mortgagee-in-Possession projects.
Approval of emergency repairs related to health and safety.
Respond to issues relating to the imminent threat to the safety of the residents, or to
the protection of property in HUD-insured or assisted multifamily projects.
www.hud.gov

espanol.hud.gov

U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
WASHINGTON, DC 20410-8000

OFFICE OF HOUSING

We look forward to resuming normal operations once government funding resumes.
Please contact Jen Larson at (202) 402-7141 or at Jennifer.L.Larson@hud.gov if you have
any questions regarding this memorandum.

www.hud.gov

espanol.hud.gov