The Office of Multifamily Housing has recently issued a draft Bifurcation Notice for Public Comment to address complexities associated with Section 8 PBRA HAP contract bifurcations, in which single HAP contracts are divided into two or more HAP contracts following HUD approval. This Notice explains the standards and conditions a project owner must meet to obtain HUD approval to bifurcate a project-based Section 8 HAP contract. It also describes the steps involved in bifurcating a HAP contract following HUD approval. Throughout this Notice, HUD uses the term “bifurcate” to describe the division of a contract, even if the contract will be divided into more than two contracts.

Members should note that deadline for submitting input is April 24, 2023, and all comments should be emailed to to AssetManagementPolicy@hud.gov.