Extended Processing Times for HAP Contract Assignments
The U.S. Department of Housing & Urban Development’s (“HUD”) San Francisco Multifamily Hub (the “Hub”) is anticipating extended processing times for all requests for consent to assignment of Section 8 Housing Assistance Payment Contracts (“HAP Contracts”). Moving forward all such requests must be submitted at least 120 days prior to the proposed closing date. This will affect all projects located within the jurisdiction of the Hub, which includes Northern California, Arizona, Hawaii and Nevada.
Owners and developers contemplating the sale or acquisition of a project assisted by a HAP Contract and within the jurisdiction of the Hub will need to provide for sufficient time to obtain HUD’s consent within the purchase agreement. Additionally, developers should begin preparing the request for consent to assignment in anticipation of the execution of a purchase agreement, so said request can be submitted to the Hub immediately thereafter.
For more information, please contact Edward J. Campbell at (415) 262-5138.