Why Many Groups Don’t File HUD Special Claims (and What It’s Costing Them)
Special Claims are one of HUD’s most overlooked benefits. They can reimburse owners and managers for vacancies, unpaid rent, and damages, yet many properties never file them. The reasons vary depending on who manages the property, but the outcome is the same: money left on the table.
9/8/20252 min read
Large Management Companies
This one surprises a lot of people. You’d think large, sophisticated management firms would have the systems in place to handle Special Claims — but most don’t. Why?
Staff are overloaded: On-site managers and leasing staff already have full plates. Filing claims is complicated, ongoing work, and often falls to the bottom of the list.
Decision-makers are removed from the process: Executives rely on site-level staff to handle claims, but those staff members don’t see the benefit directly and aren’t rewarded for the extra effort.
Compliance departments are stretched thin: Even if a company has a compliance team, they’re focused on audits, MOR prep, and day-to-day regulatory tasks. Special Claims require detailed paperwork and follow-up that often doesn’t fit into their workflow.
Third-party managed properties suffer most: When the company manages but doesn’t own the property, claims are less of a priority — meaning those properties miss out on thousands in potential reimbursements.
Owner-Managed Groups
Owner-managed properties face many of the same hurdles as large management companies — but with even fewer resources.
Limited staff capacity: Smaller owner-operators don’t have large compliance departments or specialized teams.
Knowledge gaps: Filing Special Claims requires a working knowledge of HUD rules, forms, and deadlines. Many owners simply aren’t familiar enough with the process to get started.
Resource constraints: Even if they know claims exist, they don’t have the time, internal structure, or systems to consistently prepare and submit them.
The Common Thread
Whether it’s a large management company or an owner-managed group, the core issue is the same:
Special Claims take time and expertise.
Staff are already stretched thin.
Without a clear incentive or dedicated resources, claims slip through the cracks.
And when that happens, properties lose money they’re entitled to — money that could support operations, improve compliance, and strengthen financial stability.
A Better Way Forward
The solution is to treat Special Claims as a specialized function — not an afterthought. By outsourcing or dedicating the right expertise, properties can recover tens or even hundreds of thousands of dollars annually without burdening on-site staff.
At Affordable Housing Experts, our goal is to take the process off your plate: identifying eligible claims, gathering documentation, preparing submissions, and tracking approvals. We only invoice when claims are approved — fully aligning our success with yours.
👉 Final Thought: Special Claims are too valuable to ignore. Whether you’re a large firm or a smaller owner-managed group, the cost of inaction is the same: lost revenue. Don’t let your properties miss out.
