HUD Publishes Residual Receipts FAQ

On October 3, HUD published a Frequently Asked Questions (FAQ) document to clarify certain provisions of Housing Notice H 2012-14. This notice established a process whereby HUD may recapture excess residual receipts held for Section 8 properties financed under the “New Regulation” Housing Assistance Payments (HAP) contracts. Recaptured funds from residual receipts accounts will be used to offset the cost of project-based Section 8 HAP contracts. The notice also outlined the obligations of property owners and HUD field staff in administering the new policy.

The FAQ document responds to requests from HUD field staff and industry partners to clarify certain provisions of the notice and address questions that have been submitted to HUD headquarters. HUD advises all interested parties to review the FAQ document as soon as possible. The FAQ document indicates that the first required residual receipt offset will occur with the November 2012 vouchers.

On October 2, NCSHA attended a meeting focused on multifamily housing preservation with other members of the Preservation Working Group and HUD Deputy Assistant Secretary for Multifamily Housing Programs Marie Head. At that meeting, NCSHA expressed concern that Notice H 2012-14 would become effective on October 3, although HUD still had not published the long-anticipated FAQ. DAS Head was surprised to learn about this and directed her staff to release the FAQ immediately.