Suit Challenges HUD Requirement For HAP Contract Amendments For Ownership Transfers

摘要

The owners of nine Iowa Section 8 projects have filed a lawsuit challenging a HUD requirement for ownership transfers that housing assistance payments (HAP) contracts must be amended so that properties are subject to HUD Real Estate Assessment Center (REAC) physical inspections and financial reporting if the contracts didn't originally have this requirement. The contract amendments, which are a condition of HUD approval of the assignment of the HAP contract to the new owners, must also commit the properties to complying with any future changes in REAC regulations. The owners filed suit in the U.S. District Court for the Northern District of Iowa, Western Division, on October 25 after the properties did not receive their October housing assistance payments from the Iowa Finance Authority (IFA), the contract administrator.