Message From HUD - Impact Of Government Shutdown

January 22, 2018, U.S. Department of Housing and Urban Development - As you are aware, annual funding for the government expired on Friday, January 19, 2018, due to the lack of appropriated funding.  Pending appropriations needed to operate, most FHA Multifamily activities must cease for the duration of the shutdown.  Separate guidance will be issued with respect to Asset Management activities.

Excepted and intermittently available staff will be available for those activities which affect life and safety, and for which binding obligations must be honored under the terms of their contracts.  During the first 30 business days of a shutdown, the following will apply:

•  Closings will be conducted for FHA Multifamily Initial Endorsements on projects with Firm Commitments issued on or prior to January 19, 2018, that have a scheduled closing during the shutdown period, and closings on Final Endorsements that have critical external deadlines.  Contact the Regional Production Division Director by e-mail to confirm scheduled closing dates.

•  MAP Lenders servicing construction loans and administering non-critical repair escrows may, at their and Owners’ and General Contractors’ risk, process interim construction draws.  Contract construction inspections which have been funded will be conducted.  HUD will perform or review construction inspections on a post-review basis when the government re-opens.

•  No change orders will be processed or approved.

• No applications for Multifamily FHA mortgage insurance will be accepted or processed.

We apologize for the disruption in service and look forward to resuming normal operations when government funding resumes. Please contact Dan Sullivan, Deputy Director of MF Production, at daniel.j.sullivan@hud.gov if you have any questions about this memorandum.