AUG 20, 1996
 
                                   PRESERVATION LETTER NO. 10A
 
MEMORANDUM FOR:  All Housing Directors; Multifamily Housing
                 Directors; Production Chiefs; Asset Management
                 Chiefs; and Preservation Coordinators
 
         /S/
FROM:  Nicolas P. Retsinas, Assistant Secretary for Housing -
         Federal Housing Commissioner, H
 
SUBJECT:  The Revised Processing Time Line for the Preservation
            Program
 
     On July 1, 1996, the Department issued Preservation Letter
No. 6, which contained Section V, Time Line and Temporary
Moratorium.  The purpose of the time line was to advise HUD staff
and program participants on the dates for actions for the
Preservation Program for the remainder of Fiscal Year 1996.
After issuance of Preservation Letter No. 6, the program ran out
of funding.  Accordingly, the revised funding/program time line
is as follows:
 
     A.  For the remainder of Fiscal Year 1996.
 
         1.  Funds have been set aside for tenant protections,
             (i.e., vouchers and certificates).
 
         2.  Continue to process the pipeline of preservation
             eligible projects.
 
     B.  On August 16, 1996, the Department will stop accepting
         new notices of intent.
 
     C.  On October 1, 1996, the Department will suspend further
         processing of preservation applications which do not
         have approved plans of action.
 
HMDE1:08/19/96:PREZ LTR. NO. 10 NOW READS PRESERVATION LETTER NO.
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    MULHOLLAND  MAYFIELD    CHEATHAM    GREER   BOHLING  SMITH