Transfer of Ownership

Section 8 Transfer of Ownership

Selling/Buying Properties with HPD Rental Subsidy

If you plan to sell a building with assisted units, including any transfer of ownership between entities, you must notify HPD at least 30 days in advance of the anticipated closing date, or when a contract for sale has been executed. Proper notice to HPD should include the anticipated date of sale as well as the purchaser’s name and contact information. Upon notification, HPD will review and reconcile payments with the seller, who will be required to satisfy any debts or payments due prior to the date of sale. Payments will be withheld based on closing date of the transaction. You must notify HPD if the anticipated sale date changes. 

After the sale is completed, HPD will approve the assignment of a HAP contract at the buyer’s written request. In order to avoid payment disruption and ensure full payment of HAP, this request should be received within 30 days of the sale along with the following documents:

  1. City of New York Substitute Form W-9
  2. Current IRS issued tax ID number documentation
  3. Copy of the property deed
  4. Completed Request for Assignment of HAP Contract to the Owner Services Unit 

If the request and accompanying documents are submitted within 30 days of the sale, HPD will pay up to 60 days in retroactive payments to the date of sale, provided that no rental subsidy payments were made to the seller after the date of sale. If the request package is incomplete, HPD will request additional information with a 30 day deadline for a response. If a response is not received by the deadline, HPD will make the rental subsidy payments prospective from the date that all required documentation is supplied to HPD. 

If HPD is not notified of the sale 30 days in advance and has therefore issued HAP payments to the seller, HPD will not issue additional payments for this time period to the buyer. The two parties will have to independently reconcile HAP paid to the seller.