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Section 515/8 Housing Notice & Chicago HUB

HUD announced that owners of properties with a Section 515 Rural Rental Housing loan from USDA and a Section 515/8 HAP contract from HUD who are required to submit annual financial statements (AFS) to HUD will no longer be required to do so. Furthermore, going forward, owners who purchase a property with a Section 515 Rural Rental Housing loan and a Section 515/8 HAP contract will now execute a revised “Assignment, Assumption and Amendment Agreement of Section 8 Housing Assistance Payments Contract,” which omits the language requiring the purchaser to begin submitting AFS to the Department upon assumption of the 515/8 HAP contract. This guidance supersedes previous guidance issued by the Office of Asset Management in memoranda dated June 22, 2004 and January 6, 2005.1 In an effort to reduce the financial burden of submitting multiple AFS, both HUD and USDA have agreed that current owners and those who purchase such properties in the future will now be required to submit annual financial statements only to USDA.

Please see Housing Notice H2013-16, “Exemption of Annual Financial Statement Submission for HUD-Assisted Properties with Section 515 Rural Rental Housing Mortgage Financing”  for additional information.

Also, DAS Marie D. Head announced that “…effective today, Daniel Joseph Burke will begin serving as the Chicago Hub Director.  Mr. Burke brings a wealth of multifamily housing experience to the Hub – most recently he served as the State Housing Coordinator for Long Term Care Reform for the State of Illinois.”

 

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