WaPo: Facing Shutdown Evictions, HUD Asks Landlords To Dig Into Reserves

PORTLAND, ME - NOVEMBER 29: A courtyard seen through an apartment window at the opening ceremony for The Motherhouse at Stevens Square, an old Sisters of Mercy convent turned into senior housing, on Thursday, Novembe... PORTLAND, ME - NOVEMBER 29: A courtyard seen through an apartment window at the opening ceremony for The Motherhouse at Stevens Square, an old Sisters of Mercy convent turned into senior housing, on Thursday, November 29, 2018. The building has a total of 88 studio, 1-bedroom and 2-bedroom apartments, for Portland residents 55 years and older. (Staff photo by Brianna Soukup/Portland Press Herald via Getty Images) MORE LESS

The Department of Housing and Urban Development sent letters to hundreds of landlords in a “last-minute” effort to prevent evictions due to President Donald Trump’s partial government shutdown, the Washington Post reported Sunday.

According to the Post, the Jan. 4 memo to 1,500 landlords urged them to draw on reserve cash to prevent evictions, now that departmental spending has dried up.

“Many agency officials,” the Post reported, “didn’t realize” that a HUD program covering thousands of tenants expired on Jan. 1.

The HUD memo obtained by the Post carries the subject “Impact of Government Shutdown on Multifamily FHA Mortgage Insurance Applications and Production Activities” and reads in part:

“Owners of properties with FHA insured mortgages or 202/811 Capital Advances may submit requests for releases from their reserve for replacement accounts to cover funding shortfalls caused by non-payment of monthly rental subsidy.”

Sections 202 and 811 cover capital advances and rent subsidies to expand housing opportunities for the elderly and individuals with disabilities, respectively.

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