On Jul. 17, HUD updated terminology re housing finance/State agency.
HUD has proposed to revise provisions in 24 CFR 883 for Housing Assistance Payments contracts that initially issued and administered by a State Housing Finance Agency.
Proposed Changes
Clarifies the meaning of Housing Finance Agency (HFA) and State Agency (Agency).
Applies when HUD either assumes contract administration responsibilities or assigns contract administration responsibilities to a Performance-Based Contract Administrator.
24 CFR 883 terms will apply when annual contributions contract (ACC) between HUD and HFA is in effect, when ACC expires, terms would be defined per 24 CFR 880.201.
Proposed change would eliminate the confusion that results when a renewed 24 CFR 883 HAP Contract is administered by HUD or a PBCA, rather than the former HFA.
Would also clarify how reserve accounts may be transferred following assumption of contract administration duties by a new party, in line with HUD policy and practice.
Proposes to amend 24 CFR 883.306 and add new 24 CFR 883.702 to clarify that project owners are required to request the withdrawal of funds from residual receipts.
Also, protect owners are required to request reserve for replacement accounts administered by HFAs when ACC between HUD and the HFA is terminated or expires.
Request for Comments
Comments on proposed terminology changes will be effective as of Sep. 16, 2024.
Dec. 2024 HUD Reg Final Rule
On Dec. 4, 2024, HUD issued final rule on housing assistance payments contracts.
Final rule adopted proposed rule without change; becomes effective on Jan. 3, 2025.
