Government Shutdown Could Disrupt Key Multifamily Programs

From the National Apartment Association’s AIMS Update:

In anticipation of the shutdown, the U.S. Department of Housing and Urban Development (HUD) recently published its Contingency Plan for Possible Lapse in Appropriations, which details the agency’s plan to manage through the crisis.  According to that plan, FHA will continue to endorse loans during the shutdown, it just can’t fund them.  Any impact then will be from a longer shutdown.

HUD’s department-wide strategy also offered guidance on other HUD programs.  The Department says that most housing programs, including the Section 8 program, will continue to make payments through October using past appropriations, although there will be few HUD personnel available to run the operations.  It is also unclear what will happen after October. 

HUD will also use advanced appropriations to make payments for project-based contracts in October.  It will not, however, process any contract renewals or waiver requests during the shutdown. 

Read the full plan here.