The government shutdown has now lasted nearly three weeks and is approaching what will be the longest shutdown of the federal government in U.S. history. Reports today have confirmed that federal contracts for more than 1,000 government-funded properties have expired, with 500 more contracts set to expire in January, and 550 in February. According to a HUD spokesperson, the Department has told landlords that they “can use their reserves, where available, to cover any shortfalls,” and “Historically, HUD has reimbursed owners following a shutdown.”
In a letter dated January 4th, HUD outlined how rental assistance property owners and Federal Housing Administration multifamily lenders will be impacted for the first 30 days of the shutdown. HUD also issued a contingency plan outlining how each program will operate under a shutdown and which types of actions HUD can take.
This week the U.S. House will vote on a spending bill to fund HUD and reopen the department. This spending bill is nearly identical to a bill that passed the U.S. Senate last August on a 92-6 vote and comes a week after the Senate declined to consider an omnibus proposal which included funding for HUD.