 Dear Multifamily Housing Partners,
The U.S. Department of Housing and Urban Development today published the Management and Occupancy Review (MOR) Rule and Notice in the Federal Register, effective in 90 days on 9/26/2022. The Notice follows a 2015 publication of a proposed MOR schedule and adopts a final schedule that reflects changes made in response to public comments.
The Rule and Notice apply to properties covered under project-based Section 8 Housing Assistance Payments (HAP) Contracts for the following programs: New Construction (24 CFR Part 880), Substantial Rehabilitation (24 CFR Part 881), New Construction or Substantial Rehabilitation financed by State Housing Agencies (24 CFR Part 883), New Construction financed under Section 515 of the Housing Act of 1949 (24 CFR Part 884), Loan Management Set Aside Program (24 CFR Part 886, subpart A), Disposition of HUD-Owned Projects (24 CFR Part 886, subpart C), and Section 202/8 (24 CFR Part 891, subpart E).
HUD conducts MORs to ensure that owners/property management comply with the Department’s rules and regulations. The MOR Rule establishes a frequency for the completion of MORs based upon a project’s previous MOR score and the project’s rating under HUD’s risk-based asset management model. HUD believes that moving to a risk-based MOR schedule will enhance the Department’s oversight of the Section 8 HAP program to improve overall program effectiveness and advance HUD’s mission to create strong, sustainable, inclusive communities and quality affordable homes for all.
As of the effective date of this Final Rule, Contract Administrators will establish MOR schedules as laid out in the table below, subject to variation on a case-by-case basis:
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Previous MOR:
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Unsatisfactory
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Below Average
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Satisfactory
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Above Average
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Superior
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Next MOR must be conducted within…
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Risk Classification: Troubled
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12 months of previous MOR
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12 months of previous MOR
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12 months of previous MOR
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12 months of previous MOR
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12 months of previous MOR
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Risk Classification: Potentially Troubled
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12 months of previous MOR
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12 months of previous MOR
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12 months of previous MOR
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12 months of previous MOR
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12 months of previous MOR
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Risk Classification:
Not Troubled
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12 months of previous MOR
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12 months of previous MOR
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24 months of previous MOR
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36 months of previous MOR
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36 months of previous MOR
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Please note that MORs are different than the physical inspections conducted by HUD’s Real Estate Assessment Center (REAC). The MOR Rule and Notice do not affect REAC’s inspections of Section 8 HAP properties.
We thank you for your interest and participation in HUD’s Multifamily rental assistance programs. If you have any questions about the MOR Rule or Notice, please email MOR_Questions@hud.gov.
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