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Proposed Rule on Streamlining MORs and a Proposed MOR Schedule

HUD’s Office of Multifamily Housing recently issued the following:

Proposed Rule: Streamlining Management and Occupancy Reviews for Section 8 Housing Assistance Programs and Amending Vacancy Payments for Section 8 and Section 162 Housing Assistance Programs [Docket No. FR–5654–P–01]

On January 14, 2015, the Department published a Proposed Rule regarding streamlining Management and Occupancy Reviews (MORs) for Section 8 Housing Assistance programs and amending vacancy payments for Section 8 and Section 162 Housing Assistance programs. The Proposed Rule amends Project-Based Section 8 regulations related to vacancy payments for new contracts and future renewals for the following programs:

Section 8 Housing Assistance Payments (HAP) Programs for New Construction;

Substantial Rehabilitation;

State Housing Agencies;

New Construction financed under Section 515 of the Housing Act of 1949;

The Loan Management Set-Aside Program;

The HAP Program for the Disposition of HUD-Owned Projects;

The  Section 202/8 Program; and

The Section 162 regulations related to Vacancy Payments for Section 202 Projects

The Proposed Rule also amends the Management and Occupancy Review (MOR) language for all of the existing project-based Section 8 regulations referenced above, except the Section 162 Housing Assistance Programs regulations. The Department states that it is proposing this change in order to reduce the frequency of MORs, thereby minimizing interruptions in property operations created by onsite reviews, preserving staff time, and reducing costs. HUD is accepting comments on this proposed rule, which are due on March 16, 2015.

The first proposed MOR schedule was published in the Federal Register today. This proposed schedule ties the project’s annual MOR rating to HUD’s new risk-based asset management model to determine the frequency of MORs.

To view the proposed rule on streamlining MORs, please click here

To view the proposed MOR schedule, please click here

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