Federal Multifamily Program Opt Out Information
This log is a list of developments for which owners have given Minnesota Housing notice of their intent to terminate participation in a federally assisted rental housing program
Minnesota Statutes section 504B.255 requires owners of federally assisted rental housing to give tenants a one-year written notice if (a) a federal Section 8 contract will expire, (b) the landlord will exercise the option to terminate or not to renew a federal Section 8 contract, (c) the landlord will prepay a mortgage and the prepayment will result in the termination of any federal use restrictions that apply to the housing, or (d) the landlord will terminate a housing subsidy program.
Minnesota Statutes section 471.9997 requires that at least 12 months before termination of participation in a federally assisted rental housing program, the owner of the housing must submit a statement describing the impact of the termination on the residents of the housing to the governing body of the local unit of government in which the housing is located. The owner must provide copies of the impact statement to each resident of the housing, Minnesota Housing and the Metropolitan Council, if applicable.
With respect to Section 236 loans, see Forest Park II v. Hadley et al (Case No. 04-2599) (8th Cir., May 24, 2005), a case involving prepayment of a Section 236 mortgage after the end of the twenty-year prepayment prohibition, holding that Minn. Stat. sections 471.9997 and 504B.255 are preempted.
Federally assisted rental housing programs include, but are not limited to, Section 8, Section 236, Section 202, and Section 515 (Rural Housing).
To find out more about federally assisted rental housing, visit the HUD website at www.hud.gov/ or Rural Housing Service's website at www.rurdev.usda.gov/rhs/
For further information regarding this Opt Out Information, please contact Steve O'Brien at 651.297.4065.