24 C.F.R. § 200.218
§ 200.218 Triggering Events. (24 CFR Part 200)
Operative Text
(a) Each of the following is a Triggering Event that may subject a Controlling Participant to Previous Participation review under § 200.220: (1) An application for FHA mortgage insurance; (2) An application for funds provided by HUD pursuant to a program administered by HUD's Office of Housing, such as but not limited to supplemental loans; (3) A request to change any Controlling Participant for which HUD consent is required with respect to a Covered Project; or (4) A request for consent to an assignment of a housing assistance payment contract under section 8 of the United States Housing Act of 1937 or of another contract pursuant to which a Controlling Participant will receive funds in connection with a Covered Project. (b) The Commissioner may also require a review of a potential owner's Previous Participation in connection with a loan sale or other form of property disposition, including foreclosure sale. Notwithstanding anything contained in the regulations in this subpart to the contrary, any such review shall be in accordance with the terms, conditions, provisions and other requirements set forth by the Commissioner in connection with such loan sale or property disposition which may differ, in whole or in part, from the regulations in this subpart.
Under 24 CFR Part 200 § 200.218, certain actions — such as applying for FHA mortgage insurance, seeking HUD housing funds, requesting a change in controlling ownership of a covered project, or seeking consent to assign a housing assistance payment contract — are designated as "Triggering Events" that can initiate a review of a participant's prior involvement in HUD programs. When one of these events occurs, HUD may examine the track record of the individuals or entities in a controlling role before proceeding. Additionally, HUD retains authority to require similar background reviews in connection with loan sales or property dispositions, including foreclosures, and those reviews may follow different procedures than the standard rules in this subpart.
Plain English — not legal advice.
Property owners and managers involved with HUD-assisted or FHA-insured projects should be aware that § 200.218 identifies specific actions that automatically open the door to a Previous Participation review. Compliant operators generally maintain accurate and current records of all controlling participants, since any application for FHA insurance, request for HUD funds, ownership change requiring HUD consent, or assignment of a Section 8 housing assistance payment contract can trigger scrutiny of those individuals' histories. When a loan sale or property disposition is involved, operators typically confirm with HUD what review procedures apply, as the Commissioner has authority under § 200.218(b) to impose requirements that differ from the standard subpart rules.
General guidance for property managers — not legal advice for your specific situation. Consult an attorney for advice on your case.
For tenants living in properties covered by HUD programs, § 200.218 is relevant because it governs when HUD examines the backgrounds of the people who control those properties — a process that can affect ownership changes, contract assignments, and continued access to housing assistance. If a Section 8 housing assistance payment contract assignment is being sought for a property where you reside, that action is a Triggering Event under § 200.218(a)(4), meaning HUD review is part of the process before any such transfer is approved. Tenants who have concerns about ownership changes or contract assignments at their property may find it useful to contact a local tenant-rights organization or HUD's regional office to better understand how the review process under § 200.218 might affect their housing situation.
General guidance for tenants — not legal advice for your specific situation. Consult a tenant-rights organization or attorney for advice on your case.
Generated September 4, 2026 — auto-generated, not yet human-reviewed. See /transparency for methodology.
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