Collection Procedures for Delinquent Section 201 Flexible Subsidy Loans

Housing Notice H 2013-02 has been published.  The Notice provides new procedures for collecting delinquent Section 201 loan payments, commonly referred to as Flexible Subsidy Loans, and describes the actions that must be taken to bring all delinquent Section 201 loans current. There are a small number of flexible subsidy capital loans that are delinquent and this notice provides the procedures for curing the delinquencies. You can find the Notice and attachments on HUDCLIPS at the link below:  http://portal.hud.gov/hudportal/documents/huddoc?id=13-02hsgn.pdf

The notice which provides guidance on the deferral of flexible subsidy operating loans, H 2011-5, is still in force. The procedures are applicable where loans are to be refinanced. You can read that notice here: http://portal.hud.gov/hudportal/documents/huddoc?id=11-05hsgn.pdf