Note: This HUDBlast applies to the following programs:

Section 8, Section 202/8, Section 202 PAC, Section 202 PRAC, Section 811 PRAC. 

A Special Claim For Vacancy Loss after rent-up is compensation to the property owner for the loss of rental income for a vacant unit that was previously occupied by an assisted resident. Owner/agents qualify for special claim funds when the unit remains vacant for reasons beyond the owner/agent’s control. 

On July 6, 2020, the Department of Housing & Urban Development (HUD) issued a memorandum to the Multifamily Housing Industry - Processing of Special Claims for Vacancy During the COVID-19 Pandemic. This memorandum provides instructions for the processing of Special Claims for Vacancy Loss for properties affected by COVID-19 during the period of March 27, 2020 through September 30, 2020. 

HUD’s Office of Multifamily Housing (MFH) has temporarily modified the start date for Special Claims for Vacancy Loss to accommodate for delays in filling vacant units as a result of the COVID-19 National Emergency. 

During this time, when occupancy was prevented due to the impact of the COVID-19 pandemic, MFH will accept Special Claims for Vacancy Loss for 60 days starting from the prior resident’s Move-out Date as opposed to the Make-ready Date. In addition, certain documentation submission requirements are amended for owner/agents processing Vacancy Claims relating to COVID-19. 

The claim must be received by HUD/CA within 180 days from the date the unit was vacated by a former tenant.  

In the event a property owner has submitted a Special Claim for Vacancy Loss prior to the issuance of this memorandum, and the Special Claim(s) has been processed for payment, the owner may submit a supplemental Special Claim for Vacancy Loss for the gap period from the prior tenant’s move-out date to the unit’s Make-ready date. The gap period of days added to the days claimed on the prior claim submission must not exceed 60 days. 

For Section 8 PBRA RAD owner/agents filing Special Claims for Vacancy Loss During Rent-up, the Special Claim request must be received by the HUD Account Executive within 180 days from the date the unit was ready for occupancy or the PBRA RAD Contract Effective Date - whichever is later. Owner/agents are encouraged to file claims as soon as is feasible. 

Owner/agents submitting Special Claims should review the memorandum for special instructions. 

The Special Claims Guide can be found on HUDClips at https://www.hud.gov/program_offices/administration/hudclips/guidebooks/HSG-06-01.