Change of Business Relationship

What is APPS approval?

HUD's Active Partners Performance System (APPS) approval with a DUNS/UEI number is required for any change in ownership or management agent for HUD Risk Share, 202, Section 8 Project- based, RAD PBRA, Multifamily Housing properties insured under Sections 223(a)(7), 223(f), 221(d)(3), 221(d)(4), 220, 231, 236, and 241 (See Federal Register 10/14/2016) where 20% or more of the units are assisted. This HUD approval was formally known as 2530 Previous Participation Clearance approval. (You also have the option to file a manually completed Form HUD 2530 with the local HUD field office).

Please contact your HUD Account Executive for changes to your bank or account number for the following programs:

• Section 236 Contracts – Where MassHousing is not the contract administrator for the 236 IRP
• RAD Project-Based Rental Assistance (PBRA) where MassHousing is not the contract administrator

What is an IRS Form W- 9?

This form identifies the owner/agent's Tax ID Number (TIN). The MassHousing Treasury Department uses the TIN on the IRS Form W-9 for reporting purposes.

What is a Treasury Form 1199A?

The Treasury Form 1199A designates the bank and account number for HAP payments to the Owner/Agent. (Note: Owner/Agents must include the Tax ID Number (TIN) in Box C on the 1199A Form).

What is an Assignment and Assumption Agreement?

When there is a sale or transfer to another ownership entity, the new entity will execute an Assignment and Assumption Agreement that transfers the rights and responsibilities of the old owner/borrower to the new ownership entity.

What is a Contract Administrator?

The Contract Administrator (CA), MassHousing, acts on behalf of HUD or EOHLC to disburse subsidy funds in accordance with the regulations established by the granting institution.

What is a HUD Firm Commitment Letter?

In some instances, a new owner may present a firm commitment letter from a HUD official indicating that the transfer of physical assets (TPA) has been approved, pending the completion of specified action. This may be used as an alternative to an APPS approval.

What is a Unique Entity Identifier (UEI) number and how is it obtained?

On January 26, 2023, HUD's Office of Multifamily Housing Programs published Notice H2023-01: "Unique Entity Identifier Replaces Dun & Bradstreet Data Universal Numbering System for Identification of Federal Awards". The Notice provides background on the federal government's transition from the Dun & Bradstreet Data Universal Number System (DUNS Number) to the Unique Entity Identifier (UEI).

HUD cannot obligate funds to an owner entity or grantee that has not registered its "unique entity identifier" with the federal government's System for Award Management (SAM.gov). On April 4, 2022, the unique entity identifier changed from the DUNS Number to the UEI. In addition to listing the types of HUD owner entities and grantees to which this requirement applies, the Notice identifies resources available to assist with the transition and addresses current and future TRACS implications.

We strongly recommend that you read the full Notice on HUDCLIPS.

What is a Management Agreement?

It is an agreement between the owner and agent stipulating the terms and conditions under which the agent will operate the property on behalf of the owner. MassHousing is a party to the agreement only when there is MassHousing debt.

What is an Affirmative Fair Housing Marketing Plan?

An Affirmative Fair Housing Marketing Plan (AFHMP) is a tool used by public agencies (i.e., MassHousing) to identify the demographic groups that have the greatest need for the housing provided and are least likely to apply to the subject property. The primary purpose of the AFHMP is to promote a condition in which individuals of similar income levels in the same housing market area have available to them a like range of choices in housing, regardless of the individual's race, color, religion, sex, national origin, familial status, or disability.

What is Limited English Proficiency?

Executive Order 13166 requires federal, state and local agencies that receive federal funding to ensure that people with Limited English Proficiency (LEP) have meaningful access to their programs and services. In compliance with U.S. Department of Justice and HUD directives, MassHousing began implementing its LEP Program effective September 1, 2013. LEP compliance applies to both MassHousing itself and to MassHousing-financed developments. Owners/agents must conduct a self-assessment and develop a Language Access Program (LAP). Once complete, MassHousing is requesting that owners/agents provide a LAP certification to the Quality Assurance Department within the Rental Management Division.