Management of Loan Payoffs in Multifamily Housing Properties Unnumbered Letter

On April 28, USDA’s Rural Development (RD) issued the following unnumbered letter which provides additional guidance to owners and managers of Section 515 properties reaching their maturity date naturally or through “paid ahead” status. It also outlines possible efforts to retain properties in the RD portfolio.

This unnumbered letter includes a new “Borrower Notification Letter”, a sample “Tenant Notification Letter” and an “Addendum to Lease or Rental Agreement” for borrowers to use in certain situations.

To view this unnumbered letter, please click here

Additionally, NAHMA recently participated in a call with Rural Development staff to discuss options to establish a performance-based management fee structure. This structure is still in the beginning stages.  RD staff recommended that for properties with open findings, management should be working to resolve and close the findings.  Findings have a direct impact on classification under the Management Interactive Network Connection (MINC) system. RD recommended contacting your field office to resolve findings.