Updated FAQ Published Regarding Transfer of Budget Authority Under Section 8 (bb)(1)

In an effort to preserve affordable housing nationwide, HUD now offers an alternative option to owners of Project-Based Section 8 properties wishing to exit the program. This option preserves the inventory of available units by allowing the owner to transfer all or a portion of any remaining budget authority of his/her project-based Section 8 Housing Assistance Payments (HAP) Contract to one or more contracts under Section 8(bb)(1) of the United States Housing Act of 1937.  The Contract Administrator/HUD Office and the owners on both sides of the transaction must mutually agree.

On March 14, 2016 the Office of Multifamily Housing issued updated responses to a number of questions pertaining to these Section 8 (bb)(1) transactions. These responses are in addition to those originally released on February 18, 2016.

As the Office of Multifamily Housing formulates additional responses to questions submitted, the Department will continue to issue updates to this document.   For more information on how the policies impact your particular project, please contact your CA or your Account Executive in your regional office.  General policy questions can still be sent to 8bbor214questions@hud.gov.