The Return of HUD Management Occupancy Reviews During COVID-19

The pandemic has shaken up every industry, bringing forth many changes enforced on a local level. Regarding the real estate industry, the government attempted to assist renters in financial hardship with rent forgiveness for a period. This update brought forth a major change in regulation, especially for rental properties under the HUD.  

The role of a property manager is to maintain operations under current compliance with the HUD and other federal regulations. Even though we've seen a shift into favouring work-from-home, there are some processes that must continue in-person. For example, the Management and Occupancy Reviews (MOR) is conducted to ensure property management companies are operating legally.

 

Essentially, a HUD specialist will perform a comprehensive review of your paperwork, tenant files, screening processes and more. This includes an on-site audit to examine the behaviour of your staff. In order to prepare for this important review, property managers can opt for a HUD compliance training program to ensure the both the technical and day-to-day, tasks are performed well under compliance.

 

In the face of the pandemic and its after effects, adaptability is at the heart of what it means to be a property manager. E3 Housing Solutions offers housing training webinars that specialize in specific rules and regulations to deliver insight into the current landscape of real estate under HUD compliance.

 

What are Management and Occupancy Reviews?

Management and occupancy reviews are  performed by a professional with the HUD They inspect, audit, and ensure that property managers and owners are managing the property in compliance with the HUD alongside other federal rules and regulations.

 

With the prevailing pandemic, MORs are resumed, although the pace and scale of the reviews handled by the PBCAs remain at their discretion. Excluding  unit inspections, MORs must include an onsite review of the rental management company. To gain a better understanding as to what to prepare as a property manager, we've compiled some tips.

 

Here is a timeline of the MOR process:  

1. Prior to the MOR, a scheduling letter is sent to the property owners or managers at least 30 days in advance which usually states all the important documents to be provided to the PBCA to navigate for the review for the MOR.

2. Then there is an onsite review of the random sampling of resident files.

3. After all the compliance reviews and inspections, a report is sent to the owner or property manager within a month of the MOR indicating the results of the inspection and rating of the review.

HUD management occupancy during the pandemic

The new Q/A extends flexibility previously granted by the HUD for onsite MORs. Previously, the HUD allowed for the PBCAs and HUD staff to conduct onsite MORs without entering the residents until December 31st, the new Q/A extended this flexibility until May 31, 2021.

 

To simply put, HUD has directed PBCAs to continue their work plans regarding the completion of MORs for operators of project-based section 8 and other related developments. The MOR should include the physical inspection of the property itself without entering into the property and the tenant occupancy files which must be done onsite.

 

This situation demands for professional management. As running a rental property becomes more complex than ever, the expertise of property manager’s in operations to manage the property and regulatory changes have increased exponentially. While PBCAs will continue with their work, travel restrictions might get them delayed to inspect all the properties.

 

Successfully handling transitions after major legislative updates due to the pandemic is made possible with specialized housing training webinars. To prepare themselves as well as comply with the HUD compliance rules and regulations , property managers can join online training programs or webinars to get hold of the processes that have become more cumbersome during COVID-19.