What is the definition of a "Principal Owner"?

A principal owner is any individual or entity meeting the following thresholds or roles for the applicable business form:
  • Publicly Traded Corporation – 10% or more ownership
  • Private or Closed Corporation – 25% or more ownership
  • Limited Liability Company – All Members
  • Partnerships – All Partners 

For additional information see Handbook 4000.1 I.A.3.c.iv.(A)(1) at https://www.hud.gov/program_offices/administration/hudclips/handbooks/hsgh

All policy information contained in this knowledge base article is based upon the referenced HUD policy document. Any lending or insuring decisions should adhere to the specific information contained in that underlying policy document.


Topic Number: KA-05126