LIHPRHA and Section 202 Prepayment Notice FAQ: HUD Notices 2012-08 and 2012-25

On November 28, 2012, HUD published Notice 2012-25.  This Policy for Amended and Restated Use Agreements for Multifamily Projects Subject to the Low-Income Housing Preservation and Resident Homeownership Act of 1990 (LIHPRHA) addresses the guidance with which to preserve properties that are in need of additional repair and modernization to make sure they remain viable for current and future residents.

This Notice clarifies when a LIHPRHA Use Agreement can be amended, the amendments that are allowed, and the conditions that must be met in the proposed preservation transaction to be considered for approval.

It provides a new way for LIHPRHA property owners and purchasers to recapitalize the properties and preserve their long-term viability as affordable rental housing.

Visit the FAQs for the Section 202 Prepayment Notice (Housing Notice 2012-08)