Updated Asset Management and Project Servicing Handbook in the Works

October 17, 2024

HUD intends to publish the complete, updated handbook in 2026.

 

 

HUD Handbook 4350.1, titled Multifamily Asset Management and Project Servicing, serves as a guide for managing and servicing multifamily housing properties that receive assistance from HUD. HUD recently announced the start of its process to update the Handbook and launched a request for public feedback to improve the implementation and operational efficiency of multifamily projects for its internal asset management team, property owners, and management.

HUD intends to publish the complete, updated handbook in 2026.

 

 

HUD Handbook 4350.1, titled Multifamily Asset Management and Project Servicing, serves as a guide for managing and servicing multifamily housing properties that receive assistance from HUD. HUD recently announced the start of its process to update the Handbook and launched a request for public feedback to improve the implementation and operational efficiency of multifamily projects for its internal asset management team, property owners, and management.

“We understand the unique challenges of managing HUD-assisted multifamily properties and we welcome the input of all our program participants into this update of our guidance,” Deputy Assist Secretary of Multifamily Housing Programs Ethan Handelman said in a statement.

The process marks the beginning of the first set of comprehensive updates to the Handbook since 1992. HUD says the Handbook will incorporate hundreds of policy documents in one location with enhanced digital features enabling quick access to information in a user-friendly format. And HUD intends to publish the complete, updated Handbook in 2026.

The Handbook is primarily used by field office loan management multifamily staff in carrying out their asset management and loan servicing responsibilities in monitoring and assisting owners and managing agents in maintaining projects in good physical and financial condition.

Bifurcating Section 8 Contracts

The first chapter, titled Bifurcating Section 8 Contracts, is available on the Multifamily Housing Policy Drafting Table here. Interested stakeholders can submit comments through Nov. 18, 2024. Additional chapters will be released on a rolling basis.

The chapter specifically relates to Project-Based Rental Assistance (PBRA) Housing Assistance Payments (HAP) contracts. This proposed policy outlines the standards and conditions owners must meet for HUD approval to bifurcate their HAP contracts. Bifurcation refers to dividing a single HAP contract into two or more contracts. Property owners may pursue this option for various reasons, such as managing multiple properties more effectively, accommodating tax credit allocations, or addressing issues with a portion of a project, such as a disaster-affected area. The bifurcation policy applies to all project-based Section 8 programs administered by HUD’s Office of Multifamily Housing.

This draft Section 8 contract bifurcation policy intends to make the bifurcation process more transparent and accessible for property owners. It also aims to maintain HUD’s commitment to civil rights compliance, asset management, and long-term housing preservation.

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