Unnumbered Letter on Reallocation of Unused Rental Assistance

CARH’S BROADCAST E-MAIL – Regulatory Alert

May 26, 2016

On May 24, 2016, Rural Development (RD) issued an Unnumbered Letter which allows state RD offices to reallocate unused Rental Assistance (RA) within their states without approval from the national office, reversing a policy in place since 2013 that required state offices to return unused RA to the national office to be recaptured. As members know, CARH has consistently encouraged RD to change the policy from 2013, and the new policy announced in the Unnumbered Letter supports CARH’s position.

According to the Unnumbered Letter, unused RA is RA that has not been used in the last six months in Section 515 properties and the last 12 months in Section 514 properties. This change in policy now means state offices will be authorized to transfer unused RA to preservation and other priorities within each state. This policy will be in effect on a trial basis for one year. Before the trial period expires, RD will determine whether to extend it.

Unused RA does not include RA for properties with mortgages that have matured through normal payments or have been terminated by prepayment or foreclosure. RA for such properties will continue to be recaptured by the national office.

If you have any questions, please contact the CARH National Office at carh@carh.org or 703-837-9001.

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