In accordance with the previous requirements, the user agreement was only renewed until the original expiry date. The down payment and refinancing are now a long-term custody instrument. The notice contains procedures for the advance payment of all direct loans under Section 202, those that require the agreement of the Secretary and those that do not, procedures for those who decide to enter into a long-term (20-year) user contract, and procedures for those who have Contracts under Section 8 who request further extensions and derogations of the mark from the contract. It replaces all the prior guidelines on down payment and refinancing. Section V of the Communication deals with the requirements for approval of the advance payment of debt 202 if the agreement of the DHH is required. A major change is the requirement that a long-term user agreement, which extends affordability 20 years after the initial term of the mortgage, be signed and registered between the sponsor and HUD. This section also requires the owner to respond to comments and provide those responses to the request in advance. HuD HQ`s Office of Asset Management will give them confirmation of the advance. If the project owner voluntarily meets the requirements set out in points V and VII of the Notice of Contract and has entered into a long-term use contract, the project will not be subject to contract marking after refinancing with insurance from the Federal Housing Administration (FHA). If this is not the case, the project of a brand could be launched. In the previous requirements, the proceeds could only be spent on the current tenants of the property. For other projects benefiting from the proceeds of refinancing, a user agreement must be concluded for a minimum period of ten years beyond the closing date of the refinancing. Section VII also describes the various monitoring measures that huD will implement to control revenue and the reports and documents that the owner must provide.

Under the previous requirements, each hud office set or did not set its own service savings requirements and required long-term reporting of these savings. Approval of the advance request is interpreted as authorizing all proposed uses of the product, including social services such as group meals or service coordinators, which do not represent more than 15% of the cost of the help desk, unless the secretary waives the restriction of better serving the elderly. The request for renunciation should be part of the package of advances. Finally, the proceeds can be used to reduce the rents of uninsed residents of the project, which is refinanced, as residents cannot increase their rents due to refinancing. At the time, real estate retained its status as exceptional tenants and was not subject to the market. The product can also be used for rehabilitation, modernization, upgrading, including reconfiguration of the unit; Construction of a culture or other establishment in or next to the project. With HUD authorization, the owner can pool revenues from multiple refinancings within the same geographic area to build the complements or other facilities. Section VI discusses the requirements for advances that do not require HUD approval.

Between 1977 and 1982, the mortgage letter contained a language allowing the prepayment of mortgage loans with only 30 days` notice to the hud-hub and notification to the project occupants in accordance with Section XI of the Notice. The use of revenue shall comply with the requirements set out in Section VII. Section XIII of the Communication describes how HUD will handle the request, including the requirement that a HUD multifamily HUB assess the request within 30 days of receiving the complete package according to certain steps. The HUB then submits its recommendations to the HUD HQ Office of Asset Management for review. Evidence of a substantial renovation may be satisfied by filing an assessment of the capital needs of the project or by submitting architectural plans and specifications that may have been established for the financing of the project, including tax credits. . . .