Maturing Section 236 Mortgage? HUD Reminds Owners of Preservation Resources and Notification Requirements
The U.S. Department of Housing and Urban Development (HUD) is actively working with industry partners to preserve the affordability and long-term viability of multifamily housing. A January 7 message from the agency offers links to
some useful resources and includes reminders as Section 236 mortgage maturation approaches.
The message came with a 2-page letter encouraging Section 236 owner/agents to consider voluntarily providing notice to tenants with in the final year of the property's mortgage maturity date.
While not required, it recommends timely communication with residents to inform them of plans to preserve the property as affordable, or to raise rents at the end, so they can be informed and know how to begin to explore options.
It also reminds owners of tenant notification requirements in the event of prepayment of Section 236 mortgages, and provides the following links to a number of resources available online to help with preservation of the property:
Questions may be submitted to HUD at 236Preservation@hud.gov.
Though not articulated in the new letter, owners are encouraged to pursue preservation through a range of options to include RAD, Tenant Protection Vouchers and more. Resources for these are also on the Office of Affordable Housing Preservation resource page.