As you know, the federal government is shut down. During this time, according to HUD, “most FHA
Multifamily activities must cease for the duration of the shutdown.”

HUD sent out a memo today, saying that staff wicked be available for activities that affect life and safety, “and for which binding obligations must be honored under the terms of their
contracts.”

HUD has listed how it will operate, and what you can expect to continue, during the first 30 business days of the shutdown.

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. Process payments to PBCAs. 

3. Continued management of HUD-owned and Mortgagee-in-Possession projects. 

4. Approval of emergency repairs related to health and safety. 

5. 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. 

Read HUD’s memos on the shutdown.