On August 15, 2022, HUD’s Office of Housing sent the following information:

Dear Multifamily Owners and Operators,

The Office of Multifamily Housing recently published Housing Notice 2022-04/Mortgagee Letter 2022-12, introducing its new policy for delegating the process for approving borrowers’ requests for disbursement of funds from Reserve for Replacement (RfR) accounts to lenders. The Policy provides two options available to lenders in review of borrower distribution request, Full Delegation and Partial DelegationFull Delegation enables lenders to take full responsibility for review and approving borrowers’ request for disbursements. Partial Delegation would enable lenders to review and recommend requests for approval by HUD. 

HUD is currently limiting this delegation to certain properties in its portfolio as outlined in the Section IV of the HN/ML. While this policy is effective immediately, lenders will need to seek and obtain approval prior to conducting delegated reviews of HUD-9250 RfR disbursement requests. The process for obtaining approval is outlined in Section III of the HN/ML.

If you have any questions regarding any aspect of this program, please reach out to Michael Bruggman at michael.bruggman@hud.gov.

Click here for Housing Notice 2022-04

Click here for Mortgagee Letter 2022-12