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HUD ISSUES POLICY FOR NOT-FOR-PROFITS' SALE OF MULTIFAMILY PROPERTIES

Tuesday, November 15, 2011 - 8:00AM

The U.S. Department of Housing and Urban Development (HUD) on November 10 issued Notice H 2011-31, which clarifies the conditions under which not-for-profit owners can retain the proceeds from the sale of Federal Housing Administration (FHA)-insured or HUD-held formerly FHA-insured multifamily properties. The notice says that not-for-profits may retain the proceeds from the sale of the property if the new owner will maintain the property’s long-term affordability and the transaction meets certain criteria. Notice H 2011-31 took effect immediately and it applies to all prepayment requests where HUD has not yet granted approval. Questions about the notice can be directed to Susan Wilson, CPA, at 512-340-0420 or [email protected].

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