HUDs Office of Affordable Housing Preservation (OAHP) has issued a letter on the notification requirements provided to tenants living in Section 236 properties. When the mortgage of a Section 236 property reaches its maturity, the owner may increase the rent upon renewal of the lease. This letter is intended to encourage owners and managers of Section 236 properties to provide an advance notice of the propertys maturity date to their tenants. The advance notice is voluntary, and would assist low-income residents in finding new housing before their lease expires. Tenant notification requirements do apply to the prepayment of Section 236 mortgages.
Also included in this letter is information on the new streamlined Section 236 prepayment and preservation tool. Multifamily Housing has implemented a centralized model for many preservation activities through the OAHP office in HUD Headquarters.
To read learn more about notification choices/responsibilities for tenants and for more information about the streamlined preservation tool, please follow this link to the HUD webpage at NAHMA.org.