HUD Resumption of Multifamily Production and Asset Management Activities
person
A.J. Johnson
today
02/03/2019
The HUD Office of Multifamily Housing (MFH) issued two memorandums on
February 1, 2019 outlining the departments plan for prioritizing the backlog of
work from the shutdown. One memo deals with the resumption of multifamily
production activities and the other with asset management activities.
Production Activities
HUD is prioritizing its production activities as follows:
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 prior to
12/21/18, with only minor corrections necessary to close. Priority will be
given to loans that have critical external deadlines such as LIHTCs, rate lock
extension fees, and purchase sales agreements with substantial penalties.
Conduct an inventory of applications currently in
process that were received prior to the shutdown. Applications that were
submitted during the shutdown will be date stamped 1/28/19 (the end of the
shutdown) and assigned to underwriters for future processing. These assignments
should be made by 2/5/19.
Process applications that were in process prior to
the shutdown. HUD will begin with applications that are close to issuance of
either a commitment or an invite letter as determined by the HUD Regional
Office.
Address applications that were in mid-process or
received immediately prior to the shutdown.
Applications that were submitted during the
shutdown.
Lenders may continue to submit new applications for mortgage insurance.
New concept meetings will not be scheduled until 2/19/19. Concept meetings
already scheduled may be conducted at the discretion of the HUD field office.
Third party reports (appraisals, market studies, environmental reports
and CNA submissions) whose expiration dates have lapsed pending submission of
an application due to the shutdown may have the expiration waived at the
discretion of the Regional Office.
For the foreseeable future, it is likely that lenders, borrowers, and
other affected program participants will experience longer than normal
application processing times.
HUD expects to issue another update on development processing timing in
a few weeks.
Asset Management Activities
HUD asset management priorities are as follows:
Work related to tenant health and safety, including
contract renewals and subsidy payments. HUD is currently allocating new funding
provided by the Continuing Resolution (CR) to support the renewal of expiring
Section 8 Project Based Rental Assistance (PBRA), Section 202 and Section 811
contracts. Additional funding is now available for ongoing Section 8 PBRA
contracts to ensure timely payments through April 1. There are some properties
with expiring contracts whose renewals were not fully processed by February 1.
If affected properties have HUD-controlled reserves, loans may be requested
from the reserve accounts. 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 subsidy payments are received.
Meeting critical external deadlines, such as
servicing actions in connection with FHA closings, and property sales that
require HAP Assignment processing or 2530 clearance. If your property is in
this category, you should submit a request for HUD to prioritize your action
via the assigned incoming field email box.
Other requests such as standard reserve for
replacement withdrawals will be processed in the order received.
Questions should be directed to assigned multifamily field offices as
shown below. The HUD HQ contact is Brian Murray, Acting Director of the Office
of Asset Management and Portfolio Oversight at Brian.A.Murray@HUD.gov or
202-402-2059.