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Transferring Budget Authority of a Project-Based Section 8 HAP Contract under Section 8(bb)(1)

HUD recently issued the following Notice which sets forth the Department’s policies and procedures for transferring all or a portion of any remaining budget authority of a project-based Section 8 Housing Assistance Payments (HAP) Contract to one or more contracts under Section 8(bb)(1) of the United States Housing Act of 1937 where the existing HAP contract is terminated by mutual agreement.

Section 8(bb) provides the Department with a tool for preserving Section 8 budget authority. Under Section 8(bb), if a project-based Section 8 contract is terminated or expires and is not renewed, HUD is required to transfer any remaining budget authority to another contract (either a new or an existing Section 8 HAP contract) to provide assistance to eligible families, including eligible families receiving project-based assistance at the time of contract termination, under the terms and conditions prescribed by HUD.

To view this Notice, please click here

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