If an owner opts out and the contract expires, can HUD enter into a new contract with the owner?

The correct answer is that HUD cannot enter into a new contract with the owner if they choose to opt out and the previous contract has expired. When an owner opts out of a HUD contract, it signifies their intention to terminate their participation in the program. Once the contract expires and the owner has officially chosen to opt out, they are effectively removing themselves from the obligations and provisions associated with that particular HUD contract.

This decision is significant because it means the owner is no longer subject to the regulations and terms that govern HUD contracts, which include guidelines for tenant rental assistance, maintenance standards, and reporting requirements. By opting out, the owner also forfeits various benefits associated with the program, such as guaranteed rental income through federal assistance, which are designed to ensure housing is affordable for low-income tenants.

Given these factors, once an owner has opted out and the contract has expired, HUD does not have the authority to re-enter a contractual agreement with that same owner without their consent and willingness to participate in the program again under any new terms that may be established.