Addressing the Threat of the Zika Virus at Multifamily Projects

In light of the ongoing threat and associated health concerns surrounding the Zika virus, the Office of Asset Management and Portfolio Oversight, with the concurrence of the Office of the General Counsel issued the following guidance:

Multifamily project owners covered by 24 CFR 200.853 are responsible for ensuring that their projects comply with the Physical Conditions Standards set forth in 24 CFR Part 5 Subpart G. With HUD approval, Section 8, Section 202, Section 811, and multifamily insured project owners may use residual receipts and reserve for replacement funds for reasonable expenses associated with routine preventative maintenance. The use of residual receipts may include costs associated with spraying for pests including mosquitos, and costs associated with door and screen repair and replacement. The use of reserve for replacement funds may include similar costs, as long as these costs are for capital repairs or extraordinary maintenance rather than routine maintenance items (for example, replacing all of the doors or window screens in a project as part of replacement program). Multifamily insured project owners may also treat costs expended for these purposes as reasonable operating expenses.

For more information about the Zika virus you may reference the following website: http://syndication.nih.gov/zika.htm.