HUD has published a new draft Notice addressing project-based Section 8 Housing Assistance Payment (HAP) contract bifurcations. Contract bifurcations occur when a single assistance contract between HUD and a housing provider is divided into two or more HAP contracts, with HUD approval.

HUD stated that its intention is to establish clear standards for HUD approval of bifurcation requests, to propose a set of steps for processing requests, and to reduce administrative burden on housing stakeholders and HUD.

HUD is seeking feedback on the Notice by April 24, 2023 to AssetManagementPolicy@hud.gov.