HUD releases two new proposed rules in the Federal Register for public comment regarding Management and Occupancy Reviews and Special Claims for Regular Vacancy

On January 14, 2015, HUD released two new proposed rules in the Federal Register to solicit comments from the public due March 16, 2015.

The first proposed rule concerns the proposed Management and Occupancy Review schedule for the project-based Section 8 programs administered by the Office of Multifamily Housing. The proposed schedule would reduce the number of required MORs by allowing the frequency of MORs to be determined by the annual MOR rating issued to the property via HUD’s new risk-based asset management model. To read the full text of the proposed rules regarding the Management and Occupancy Review schedule, click here.

The second proposed rule concerns vacancy payments. While the proposed rule has several minor changes, the change that would impact the industry the most is related to the maximum timeframe a project-based Section 8 owner is eligible for vacancy payments. Currently, owners are entitled to vacancy payments in the amount of 80 percent of the contract rent for a period of no more than 60 days after a vacant unit is ready for occupancy, provided the owner has marketed the unit. The proposed rule would reduce the maximum period of time from 60 days to 30 days. If this regulation is finalized, the new language would be reflected in all future renewal contracts under MAHRA. It would not preempt existing contracts.  To read the full text of the proposed rules regarding vacancy payments, click here.

Both links provided will detail additional information and instructions for those that wish to submit comments by March 16, 2015.