This week’s #TuesdayTip is a continuation of our breakdown on HUD’s efforts to streamline MOR’s.

MOR Rule Changes

Under the new process, 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.