HUD Multifamily Launches New Section 8(bb) Preservation Tool Webpage
HUD announced a new webpage for the Section 8(bb) Preservation Tool, which allows for the transfer of Section 8 project-based rental assistance (PBRA) budget authority from one multifamily project (Project A) to another multifamily project (Project B). Under Section 8(bb), if a PBRA Housing Assistance Payments (HAP) contract is terminated or expires and isn’t renewed, HUD is authorized to transfer any remaining budget authority to either a new or an existing PBRA HAP contract to provide assistance to eligible families, including those receiving project-based assistance at the time of the contract termination, under terms and conditions prescribed by HUD.
To execute an 8(bb) transfer, HUD’s current policy is that the owner of the transferring property (Owner A) must identify the property to which the budget authority will be transferred. The owner of the project to which the budget authority is transferred (Owner B) must agree to accept the budget authority. Owner A’s request to transfer the budget authority under Section 8(bb) will be reviewed by HUD.
The Office of Multifamily Housing is compiling a centralized list of properties whose owners have submitted letters of interest indicating a desire for their project to be considered as a potential recipient of Section 8 Project Based Rental Assistance (PBRA) through the Section 8(bb) authority.
This webpage makes the list available to owners who are interested in transferring their PBRA budget authority. This information may also be considered by HUD in instances where an 8(bb) transfer is being pursued in the context of a HUD enforcement action. It’s important to note that participation in a Section 8(bb) transaction isn’t limited to the properties on webpage’s list.
To be placed on this list, HUD invites owners of multifamily properties to submit letters of interest. Owners are encouraged to review the eligibility requirements in Notice H 2015-03 before submitting their letters of interest. Letters of interest must be submitted by email to an address that depends on the state where the properties are located. HUD is accepting letters of interest on an ongoing basis with no termination date. For what information to include in the letter of interest and the regional email addresses for the letters, go to https://www.hud.gov/program_offices/housing/mfh/8bb.