HUD Posts Notice for Transferring HAP Contract Budget Authority
On Oct. 9, HUD issued a notice outlining policies and procedures for transferring remaining budget authority of a project-based Section 8 Housing Assistance Payments (HAP) contract under Section 8(bb)(1) of the U.S. Housing Act of 1937.
This notice sets forth HUD's policies and procedures for transferring all or a portion of any remaining budget authority of a project-based Section 8 HAP contract to one or more contracts where the existing HAP contract is terminated by mutual agreement.
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 d assistance at the time of contract termination, under the terms and conditions prescribed by HUD.
The budget authority can be transferred to one or more projects where the existing HAP contract is terminated or expires and is not renewed. In order to transfer the remaining budget authority, the contract administrator and the owner of the project from which the budget authority will be transferred must mutually agree to the termination and transfer of funds. The owner of the project receiving the transferred budget authority must also agree to accept the transfer.
The project from which HUD transfers budget authority may continue to exist as a multifamily housing project after the transfer, or it may cease to exist. The budget authority may be transferred to one or more projects.
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