515/8 Properties Now Exempt from FASSUB Reporting

As of May 23, 2013 owners of properties with a USDA Section 515 Rural Rental Housing loan and a HUD Section 515/8 New Construction Housing Assistance Payments (515/8 HAP) contract are no longer required to  submit annual financial statements (AFS) to HUD – even if they’ve had to in the past.

Owners who buy a site with a 515 loan and a 515/8 HAP contract, as described above, will execute a revised “Assignment, Assumption and Amendment Agreement of Section 8 Housing Assistance Payments Contract,” which does not require FASSUB submissions when the HAP contract is assumed.  In an effort to reduce the burden of submitting more than one Audited Financial Statement, both HUD and USDA have agreed that current and future owners will now be required to submit these statements only to USDA.

See Housing Notice H 2013-16, Exemption of Annual Financial Statement Submission for HUD-Assisted Properties with Section 515 Rural Rental Housing Mortgage Financing on HUDCLIPS at: