Rental assistance stays attached to units through foreclosure
What the document says“``(A) the Secretary shall maintain any rental assistance payments that are attached to any dwelling units in the property; and ``(B) the rental assistance contract may be used to provide further assistance to existing projects under 514, 515, or 516.''.”
The section adds a new paragraph to section 521(d) of the Housing Act of 1949 requiring the Secretary of Agriculture, when managing or disposing of a multifamily property the Department owns or holds a mortgage on and during foreclosure on a property with a rental assistance contract, to keep any rental assistance payments attached to the units, and allowing the contract to help other existing projects under sections 514, 515, or 516.
What the document actually says“``(A) the Secretary shall maintain any rental assistance payments that are attached to any dwelling units in the property; and ``(B) the rental assistance contract may be used to provide further assistance to existing projects under 514, 515, or 516.''.”
The farm agency must keep the rent aid tied to the homes. The contract may also help other projects that already exist.
A foreclosure can wipe out a rent subsidy. Then a tenant loses help through no fault of their own. This keeps the aid with the home.
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