HUD Regulatory Compliance
Keeping up with all the operational regulations that HUD issues can be daunting. But we are here to help. LeadingAge staff tracks and analyzes HUD websites, notices and guidance to help you understand compliance requirements. Following are the most recent notices or policies statements straight from HUD.
We've featured some articles below, but be sure to check out all of our senior housing content.
On August 7, 2015, HUD issued the long-awaited Section 8 Renewal Policy Guidebook. Many of the changes impact how Section 8 contracts are administered, how rents are raised, and the rules around the use of the Rent Comparability Study (RCS). Here we expand on our earlier analysis of the major changes and impacts on non-profit member options and opportunities.
In August and September, many HUD offices issued announcements warning that owners who make or take distributions from project funds in violation of their business agreements with HUD may be subject to both civil and criminal penalties, as well as administrative sanctions, such as debarment from participating in federal programs.
The HUD Office of Inspector General (OIG) has released a report titled, Owner Advances and Distributions in Multifamily Housing Programs, dated Sept 17, 2014, which found that HUD did not always enforce the requirements of the regulatory agreements and HUD handbooks pertaining to owner advances and distributions.
On Oct. 13, the U.S. Department of Housing and Urban Development (HUD) published the Operational Cost Adjustment Factors that will go into effect nationwide for eligible multifamily housing projects having an anniversary date on or after on Feb. 11, 2016. The national average this year is 2.8% (up from 2.1% last year), with highs of 3.4% in Illinois and New mexico, and lows of 1.4% in Alaska and Vermont.
On Sept. 30, the U.S. Department of Housing and Urban Development (HUD) issued a second memorandum requiring residual receipts in excess of $250 per unit in all PRACs to be returned to HUD to offset future program appropriations, but expanded exceptions to include funding necessary to support service coordination at the property.