24 C.F.R. § 200.220
§ 200.220 Previous Participation review. (24 CFR Part 200)
Operative Text
(a) Scope of review. (1) Upon the occurrence of a Triggering Event, as provided in § 200.218, the Commissioner shall review the Previous Participation of the relevant Controlling Participants in considering whether to approve the participation of the Controlling Participants in connection with the Triggering Event in accordance with the definition of Risk in § 200.212. (2) The Commissioner will not review Previous Participation for interests acquired by inheritance or by court decree. (3) In connection with the submittal of an application for any Triggering Event, applicants shall identify the Controlling Participants and, to the extent requested by HUD, make available to HUD the Controlling Participant's Previous Participation in Covered Projects. (b) Results of review. (1) Based upon the review under paragraph (a) of this section, the Commissioner will approve, disapprove, limit, or otherwise condition the continued participation of the Controlling Participant in the Triggering Event, in accordance with paragraphs (c) and (d) of this section. (2) The Commissioner shall provide notice of the determination to the Controlling Participant including the reasons for disapproval or limitation. The Commissioner may provide notice of the determination to other parties as well, such the FHA-approved lender in the transaction. (c) Basis for disapproval. (1) The Commissioner must disapprove a Controlling Participant if the Commissioner determines that the Controlling Participant is suspended, debarred or subject to other restriction pursuant to 2 CFR part 180 or 2 CFR part 2424; (2) The Commissioner may disapprove a Controlling Participant if the Commissioner determines: (i) The Controlling Participant is materially restricted, including voluntarily, from doing business with HUD (other than the restrictions listed in paragraph (c)(1) of this section) or any other governmental department or agency if the Commissioner determines that such restriction demonstrates a significant risk to proceeding with the Triggering Event; or (ii) The Controlling Participant's record of Previous Participation reveals significant risk to proceeding with the Triggering Event. (d) Alternatives to disapproval. In lieu of disapproval, the Commissioner may: (1) Condition or limit the Controlling Participant's participation; (2) Temporarily withhold issuing a determination in order to gather more necessary information; or (3) Require the Controlling Participant to remedy or mitigate outstanding violations of HUD requirements to the Commissioner's satisfaction in order to participate in the Triggering Event.
Under 24 CFR Part 200 § 200.220, when a Triggering Event occurs—such as a new application for FHA-insured financing or a transfer of ownership—HUD's Commissioner is required to examine the past performance history of the Controlling Participants involved. Based on that review, the Commissioner can approve, disapprove, limit, or attach conditions to a participant's involvement, with mandatory disapproval required when a participant is suspended or debarred under federal regulations. Interests acquired through inheritance or court decree are carved out from this review process, and instead of outright disapproval, the Commissioner has the flexibility to require remediation, impose conditions, or temporarily pause a determination to gather more information.
Plain English — not legal advice.
Property owners and managers involved in HUD-covered transactions should be aware that § 200.220 requires them to identify all Controlling Participants and make their Previous Participation records available to HUD upon request when a Triggering Event is submitted. Operators who maintain clean compliance histories, promptly address outstanding HUD violations, and ensure that no Controlling Participant is subject to suspension, debarment, or material restrictions from government business are generally better positioned during the Commissioner's review. When a determination is issued—whether an approval, disapproval, or conditional approval—the Commissioner is required to provide written notice explaining the reasons, and that notice may also be shared with the FHA-approved lender involved in the transaction.
General guidance for property managers — not legal advice for your specific situation. Consult an attorney for advice on your case.
While § 200.220 primarily governs the relationship between HUD and property owners or developers, tenants living in HUD-covered or FHA-insured housing have an indirect interest in this provision because it is designed to screen out participants with problematic track records before they gain control of federally assisted properties. If a tenant has concerns about a change in ownership or management of their building that may involve a Triggering Event, they may wish to contact HUD directly or reach out to a local tenant-rights organization to understand how the Previous Participation review process could affect their housing. Tenants can also consult HUD's publicly available resources or a housing counselor approved under HUD programs to learn more about how § 200.220 fits into the broader oversight framework for federally assisted housing.
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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