On May 1, 2025, HUD’s Office of Multifamily Housing sent out the following bulletin:

Multifamily Stakeholders,

Effective immediately, the Office of Multifamily Production has issued a Notice of Immediate Rescission of Administrative Memorandum Subdivisions for Rent rescinding the Administrative Memorandum published May 14, 2021, Clarification of Multifamily Insured Mortgage Project Eligibility – Restrictions on ‘Subdivisions for Rent’. 

Until replacement guidance is finalized, eligibility of subdivisions for rent type projects will be determined on a case-by-case basis pursuant to Departmental requirements.