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Section 8(bb) (1) Program




 Section 8(bb) (1) Program Overview

Sets policies and procedures for transferring remaining budget authority of a project-based Section 8 Housing Assistance Payments (HAP) Contract to one or more contracts under Section 8(bb)(1) of the United States Housing Act of 1937.


Section 8(bb) (1) requires HUD to transfer any remaining budget authority to another contract (either a new or an existing Section 8 HAP contract).


A key preservation tool under Section 8(bb) (1) allows Section 8 Contract budget authority to continue assisting eligible families.


The program provides HUDís terms and conditions for approval of a Section 8(bb) (1) transfer where the owner and the contract administrator mutually agree to terminate the contract early.


 Conditions for Approval:

Transferring Owner and Contract Administrator must mutually agree to terminate the contract early and transfer all or part of the budget authority.


Receiving property must have satisfactory MOR and REAC scores or have a HUD-approved plan in place to correct any deficiencies.


The receiving property must be in a neighborhood with less than 30 percent concentrated poverty.


The receiving property must meet environmental review requirements and FHEO site and neighborhood standards.


Tenant notification and mandatory tenant meeting at the transferring property.


Top Highlights of the Section 8(bb) (1)

Owners can use the approval letter as a conditional commitment for new construction or substantial and moderate rehabilitation.

The budget authority cannot be transferred until the units it will assist exist (e.g. a certificate of occupancy has been issued).

New standards for the location of Project B that help facilitate the transfer of budget authority to neighborhoods that are improving or improved.

Clarifies that budget authority can be transferred to properties without an existing Section 8 contract.


Tenant Protection Vouchers (TPV) are available for those tenants that do not wish to relocate with the budget authority.

Greater flexibility on HUD REAC Physical Inspection scores, HUD On-Site Management & Occupancy Review (MOR) scores, etc. to allow for recapitalization deals.


Clarified tenant notification requirements and the expectations of Owners A and Owner B and the Multifamily field staff. 

The Section 8 (bb) (1) Program provides a policy that was long awaited, issuance of a policy will increase the volume of 8(bb) transactions completed and preserve more Section 8 budget authority.

If you need my services for submission of a request for participate in the Section 8 (bb) (1) transfer program let me know. 


Alvin L. Sutherlin

Housing Consultant

Post Office Box 162

Mount Rainier, Maryland 20712-0162

Voice Number: 301-277-3465


Overnight Mail:

4104-29th Street

Mount Rainier, Maryland 20712-1820