Rural Development Raises the Threshold for Requiring Multiple Bids on Reserve for Replacement Work Orders

CARH’s BROADCAST EMAIL—Regulatory Alert

December 16, 2024

On December 13, 2024, Rural Development (RD) published Procedural Notice (PN) 632 announcing changes to Chapter 4, Section 4.13 of the MFH Asset Management Handbook (HB-2-3560), which revises the “Withdrawal Approval Process” by changing the threshold for requiring multiple bids on reserve for replacement work orders from $5,000 to $10,000 for properties with 24 units or less, or $25,000 for properties with 25 units or more. This PN will address obstacles previously facing rural housing developers in communities where there may be only one qualified contractor to perform the work needed to rehabilitate projects.

CARH members who attended the annual meeting earlier this year may recall this was a recommendation made by the CARH Management Committee and subsequently advocated by CARH’s national office to RD senior leadership. Please contact the CARH National Office at carh@carh.org or 703-837-9001 should you have questions or concerns.

For other news and information affecting the affordable rural housing industry, please visit the Newsroom on CARH’s website, www.carh.org.