The U.S. Department of Housing and Urban Development (HUD) sent out a memorandum about processing special claims for vacancy during the COVID-19 pandemic this week. Eligible properties include Section 8, Section 202/811 PRAC and Project Assistance Program. The memo instructs owner/agents on how to process the claims from March 27, 2020, to September 30, 2020.

HUD’s “Office of Multifamily Housing (MFH) has temporarily modified the start date for vacancy claims to accommodate for delays in filling vacant units as a result of impediments caused by COVID-19,” the memo reads. “Impediments resulting from state and local “stay-at-home” orders include, but are not limited to delays in units being prepared for occupancy as noted in Section 3-2.B.4 of the Special Claims Guide, staff showing units to
prospective residents, or meeting eligible applicants to process move-in documentation.”

MFH will accept vacancy claims for 60 days “starting from the prior Tenant’s Move-out Date as opposed to the Ready-for-Occupancy Date, in instances where preparation of the unit for occupancy was prevented due to the impact of COVID-19.” HUD has also amended the requirements for certain documentation submission.

You can read the memo here. It addresses:

• Special Claims for Vacancy During Rent-up (Rental Assistance Demonstration (RAD) properties only)
• Special Claims for Vacancy Loss After Rent-up (Regular Vacancy)