CARH’S BROADCAST E-MAIL – Regulatory Update

November 16, 2018

For the past few months, CARH’s Management Committee has been monitoring and working with Rural Development (RD) on their rent incentive pilot that was being tested in Florida, New York, North Carolina, and Ohio. Feedback on the pilot was positive, with both borrowers and RD staff commenting that they found the program beneficial.

RD has issued an Unnumbered Letter (UL) dated October 26, 2018, and published today, that provides guidance to state offices in the development of rent incentive options in situations where multi-family owners or management agents can be allowed to address a potential vacancy problem immediately or as part of a Servicing Work Out Plan in situations where multi-family properties are experiencing high vacancies.

According to the UL, this servicing tool is temporary in nature to help in determining a long-term strategy for managing the property. CARH will continue to work closely with RD on development of any long-term strategy.

If you have any questions, please contact the CARH national office at carh@carh.org or 703-837-9001.