|
Section
8(bb) (1) Program Overview
Sets
policies and procedures for transferring remaining budget authority
of a project-based Section 8 Housing Assistance Payments (HAP)
Contract to one or more contracts under Section 8(bb)(1) of the
United States Housing Act of 1937.
Section
8(bb) (1) requires HUD to transfer any remaining budget authority to
another contract (either a new or an existing Section 8 HAP
contract).
A key
preservation tool under Section 8(bb) (1) allows Section 8 Contract
budget authority to continue assisting eligible families.
The
program provides HUD’s terms and conditions for approval of a
Section 8(bb) (1) transfer where the owner and the contract
administrator mutually agree to terminate the contract early.
Conditions for Approval:
Transferring Owner and Contract Administrator must mutually agree to
terminate the contract early and transfer all or part of the budget
authority.
Receiving property must have satisfactory MOR and REAC scores or
have a HUD-approved plan in place to correct any deficiencies.
The
receiving property must be in a neighborhood with less than 30
percent concentrated poverty.
The
receiving property must meet environmental review requirements and
FHEO site and neighborhood standards.
Tenant
notification and mandatory tenant meeting at the transferring
property.
Top
Highlights of the Section 8(bb) (1)
Owners can use the approval letter as a conditional commitment
for new construction or substantial and moderate rehabilitation.
The
budget authority cannot be transferred until the units it will
assist exist (e.g. a certificate of occupancy has been issued).
New
standards for the location of Project B that help facilitate the
transfer of budget authority to neighborhoods that are improving
or improved.
Clarifies that budget authority can be transferred to properties
without an existing Section 8 contract.
Tenant Protection Vouchers (TPV) are available for those tenants
that do not wish to relocate with the budget authority.
Greater flexibility on HUD REAC Physical Inspection scores, HUD
On-Site Management & Occupancy Review (MOR) scores, etc. to
allow for recapitalization deals.
Clarified tenant notification requirements and the expectations
of Owners A and Owner B and the Multifamily field staff.
The
Section 8 (bb) (1) Program provides a policy that was long
awaited, issuance of a policy will increase the volume of 8(bb)
transactions completed and preserve more Section 8 budget
authority.
If you need my services for submission of a request for participate
in the Section 8 (bb) (1) transfer program let me know.
Alvin L.
Sutherlin
Housing
Consultant
Post
Office Box 162
Mount
Rainier, Maryland 20712-0162
Voice
Number: 301-277-3465
Overnight Mail:
4104-29th
Street
Mount
Rainier, Maryland 20712-1820
alvinl.sutherlin@verizon.net
http://www.hud-consultant.com
References:
http://hud-consultant.com/References.html
|
