Change of Business Relationship
When a development experiences a change in ownership, management agent, development name, bank, bank account or ABA routing number, a "Change of Business Relationship" (COBR) request must be submitted to MassHousing. Submission of a cover letter, a site specific COBR checklist, and supporting documentation is required to process the COBR request.
Following this COBR process ensures
- All regulatory requirements for the requested change are met
- MassHousing Divisions update their records simultaneously
- Financial obligations such as subsidy payments and loan servicing transactions are accurate
- External databases are updated as required
This process applies to any development where MassHousing is the lender and/or MassHousing is the Contract Administrator for HUD Risk Share, Workforce Housing, MAP, Section 811, Section 8 Project-Based Assistance Programs, and Mixed Financing.
To ensure timely processing, the appropriate checklist and required documents must be sent directly to COBR@masshousing.com. This email inbox is monitored by Quality Assurance staff. If you have any questions regarding this process, please email LRandolph@masshousing.com or call 617.854.1167.
Please note that we will process your request when all the required documents have been received.
Change of Business Relationship Checklists
To begin, select the appropriate checklist for the specific subsidy profile of your property. The instructions are attached to each checklist. If you are unsure of the subsidy type for your development, please contact your MassHousing Asset Manager.
Each checklist will require one or more of the following documents:
Frequently Asked Questions
What is APPS approval?
HUD's Active Partners Performance System (APPS) approval with a DUNS number is required for any change in ownership or management agent for HUD Risk Share, 202, Section 8 Project- based, RAD PBRA, Multifamily Housing properties insured under Sections 223(a)(7), 223(f), 221(d)(3), 221(d)(4), 220, 231, 236, and 241 (See Federal Register 10/14/2016) where 20% or more of the units are assisted. This HUD approval was formally known as 2530 Previous Participation Clearance approval. (You also have the option to file a manually completed Form HUD 2530 with the local HUD field office).
Please contact your HUD Account Executive for changes to your bank or account number for the following programs:
- Section 236 Contracts – Where MassHousing is not the contract administrator for the 236 IRP
- RAD Project-Based Rental Assistance (PBRA) where MassHousing is not the contract administrator
What is an IRS Form W- 9?
This form identifies the owner/agent's Tax ID Number (TIN). The MassHousing Treasury Department uses the TIN on the IRS Form W-9 for reporting purposes.
What is a Treasury Form 1199A
The Treasury Form 1199A designates the bank and account number for HAP payments to the Owner/Agent. (Note: Owner/Agents must include the Tax ID Number (TIN) in Box C on the 1199A Form)
What is an Assignment and Assumption Agreement?
When there is a sale or transfer to another ownership entity, the new entity will execute an Assignment and Assumption Agreement that transfers the rights and responsibilities of the old owner/borrower to the new ownership entity.
What is a Contract Administrator?
The Contract Administrator (CA), MassHousing, acts on behalf of HUD or DHCD to disburse subsidy funds in accordance with the regulations established by the granting institution.
What is a HUD Firm Commitment Letter?
In some instances, a new owner may present a firm commitment letter from a HUD official indicating that the transfer of physical assets (TPA) has been approved, pending the completion of specified action. This may be used as an alternative to an APPS approval.
What is a Management Agreement?
It is an agreement between the owner and agent stipulating the terms and conditions under which the agent will operate the property on behalf of the owner. MassHousing is a party to the agreement only when there is MassHousing debt.
What is an Affirmative Fair Housing Marketing Plans?
An Affirmative Fair Housing Marketing Plan (AFHMP) is a tool used by public agencies (i.e., MassHousing) to identify the demographic groups that have the greatest need for the housing provided and are least likely to apply to the subject property. The primary purpose of the AFHMP is to promote a condition in which individuals of similar income levels in the same housing market area have available to them a like range of choices in housing, regardless of the individual's race, color, religion, sex, national origin, familial status, or disability.
What is Limited English Proficiency?
Executive Order 13166 requires federal, state and local agencies that receive federal funding to ensure that people with Limited English Proficiency (LEP) have meaningful access to their programs and services. In compliance with U.S. Department of Justice and HUD directives, MassHousing began implementing its LEP Program effective September 1, 2013. LEP compliance applies to both MassHousing itself and to MassHousing-financed developments. Owners/agents must conduct a self-assessment and develop a Language Access Program (LAP). Once complete, MassHousing is requesting that owners/agents provide a LAP certification to the Quality Assurance Department within the Rental Management Division.