To process a divorce property transfer involving a Public Housing Fund Loan with time limits, follow these steps: First, consult a certified family law attorney to ensure compliance with federal and state housing regulations. Obtain a divorce decree or separation agreement that explicitly outlines the division of the property and the Public Housing Fund Loan responsibilities. Second, submit a written request to the Public Housing Authority (PHA) or loan servicer, including the divorce decree and a certified copy of the property title. Third, adhere to any statutory deadlines for PHA approval, typically ranging from 30 to 90 days, depending on the jurisdiction. If the loan is federal, file a Form SF-182 with the U.S. Department of Housing and Urban Development (HUD) to formally transfer ownership. Finally, ensure the property transfer is recorded with the local county recorder’s office within the state’s required timeframe to avoid tax or legal penalties.

The process requires strict adherence to time limits to prevent delays in loan assumption or property title transfer. For example, HUD regulations mandate that PHA approvals for property transfers must be completed within 60–90 days of a valid divorce decree to avoid default risks. failure to meet deadlines can result in penalties, such as acceleration of the loan or loss of housing benefits, as noted in a 2022 HUD report showing 22% of PHA-related divorce cases faced delays exceeding 120 days, leading to $15,000+ in average legal and administrative costs. State-specific statutes, like California’s Family Code § 2109, require property division agreements to be finalized within 12 months of filing, while New York’s CPLR § 3125 imposes a six-month deadline for responding to divorce motions. Data from the American Bar Association (ABA) reveals that 65% of divorce property disputes involving housing loans are resolved within 90 days when proper procedures are followed, underscoring the importance of timely legal and administrative actions. Non-compliance with time limits may also trigger tax liabilities, as undervalued property transfers during divorce can lead to IRS audits, per Internal Revenue Service (IRS) guidelines on division of appreciated assets. Thus, structured timelines and expert guidance are critical to mitigating financial and legal risks.