Is HUD approval required when the dwelling or improvements are to be moved to another location?

Except in the emergency situations described in Handbook 4000.1 Section III.A.1.j.iv.(B), Emergency Relocation Not Requiring HUD Approval, the Mortgagee must obtain HUD approval prior to relocation. The Mortgagee must submit to the National Servicing Center (NSC) via the Extensions and Variances Automated Requests System (EVARS):
  • the Mortgagee’s request for a change in improvement location; and
  • supporting documentation, including architectural exhibits, a copy of the permit, and a description of materials.
HUD will analyze the request and notify the Mortgagee of the approval or denial of the request.
 
The Mortgagee must ensure that relocations are performed as follows:
  • the Mortgagee obtains a good and valid first lien on the new lot;
  • the lien of the insured Mortgage has been extended to cover the new lot and the old lot has or has not been released from the lien, as appropriate;
  • all damages to the Structure before, during, or after the relocation are repaired without cost to HUD; and
  • the new lot is in an area known to be reasonably free from natural hazards or, if in a Special Flood Hazard Area (SFHA), the community participates in the National Flood Insurance Program (NFIP) and the Property will be insured against floods.
The Mortgagee must retain a copy of HUD’s approval or denial in the servicing file. After the move has been completed and the appropriate substitute documents have been recorded, the Mortgagee must forward to HUD any documentation regarding the changes in the nature of the lien and retain copies in the servicing file.

Additional questions may be directed to the HUD National Servicing Center at (877) 622-8525.

For policy information see Handbook 4000.1 III.A.1.j.iv.(A) 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-05243