HUD Housing Programs: Tenants’ Rights (The Green Book): 12.3.5.1 Introduction
An owner’s default on the loan and mortgage can threaten HUD-subsidized units by precipitating a foreclosure by HUD and a termination of the property’s use and affordability restrictions. Even where HUD acquires title at the foreclosure sale and seeks to re-sell the property, continued use of the property as affordable housing can be jeopardized.