In this week’s #TuesdayTip, Vickie breaks down the changes coming to MOR Rule changes happening soon.

MOR Rule Changes

Under the new schedule, MOR’s can happen every one, two, or three years. Properties must have a MOR within one year if it has:

• a “Troubled” or “Potentially Troubled” risk classification, regardless of its MOR score, or
• a “Not Troubled” risk classification but an MOR score of “Unsatisfactory” or “Below Average.”

MOR lengths increase with risk classifications. For example:

• a property must have a MOR within 24 months of its previous MOR if it has a “Not Troubled” risk classification and a MOR score of “Satisfactory.”
• a property must have a MOR within 36 months of its previous MOR if it has a “Not Troubled” risk classification and previous MOR score of “Above Average” or “Superior.

A complete copy of the HUD changes can be found in the Federal Register.

Again, these changes will be implemented on September 26, 2022.