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HUD Update: Family Self-Sufficiency Listening Session and Revised Procedures for Submitting Form HUD 9807

3 October 2018
 October 3, 2018
Category HUD News, News
  1. Revised Procedures for Submitting Form HUD 9807

Mortgagee Letter 2018-07 published yesterday provides updated guidance on the submission of form HUD 9807, Insurance Termination Request for Multifamily Mortgage, for obtaining prepayment approval for multifamily rental housing loans.  This is a revision to Mortgagee Letter 2004-21, dated June 15, 2004.  Currently, the form is submitted by mortgagees for prepayment approval to the Office of Finance and Budget’s Multifamily Insurance Operations Branch.  To expedite the review and approval process, mortgagees will submit the form to the Office of Asset Management and Portfolio Oversight (OAMPO) to a newly created mailbox:

Please contact Walter D. Wynn at (202) 402-2231 if you have questions.

  1. Family Self-Sufficiency Program Listening Session

As you may know, the Family Self-Sufficiency program was re-authorized on May 24, 2018 as part of the Economic Growth, Regulatory Relief, and Consumer Protection Act.

In order for the new legislation to go into effect, HUD is required to issue new regulation.  As a part of that process, we will be holding a listening session both in person at the HUD building, 451 7th St. SW, and via conference call on Tuesday, October 9 from 10 a.m. to 12 p.m.

Topics may include:

  • Contract of Participation signed by any household member vs. Head of Household (as it currently is)
  • Contract of Participation to be completed not later than 5 years after the first recertification of income after entering into the contract.
  • Forfeited Escrow shall be used by the eligible entity for the benefit of participating families in good standing (currently goes back to HAP or Op Fund) – what should be eligible uses?  How should it be tracked?
  • Removing 12-month welfare free requirement & replace with “welfare free at time of graduation”
  • Removing automatic graduation due to 30% adjusted income equal to or greater than FMR of unit size family is entitled to (currently applies to HCV only)
  • Defining “good cause” for extension of contract to include pursuit of educational or advanced employment goals
  • Allowing for contract completion and distribution of escrow for CoP holder that becomes permanently disabled during CoP and cannot work
  • Challenges of a Program Coordinating Committees for Multifamily programs
  • Challenges of consultation with local government for Multifamily programs
  • Other comments on implementation of new legislation or changes in current regulation

We are seeking inputs and anecdotal evidence on challenges faced by the organizations represented; how they might address these challenges presented by the proposed regulations; or how they might be successful or unsuccessful in addressing the new regulatory environment.  We are not seeking consensus advice or recommendations resulting from group deliberations or discussion.  We seek to obtain information or viewpoints from individual attendees as opposed to advice, opinions, or recommendations from the group in a collective mode.

If you would like to attend or dial into the listening session, please RSVP by email or phone to the Multifamily FSS program contact Carissa Janis (202-402-2487).

If you would like to submit written comments on any of the topics above or other concerns or thoughts about implementation of the new statute or change in FSS regulation, please send an email to by October 10, 2018.

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