 |
 |
| 14.197 MULTIFAMILY ASSISTED HOUSING REFORM AND AFFORDABILITY ACT |
| (Market-to-Market) |
| FEDERAL AGENCY |
| OFFICE OF HOUSING, DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT |
| AUTHORIZATION |
| The Multifamily Assisted Housing Reform and Affordability Act of 1997 (Title V of Pubic Law No. 105-65, October 27, 1997, 111 Stat. 1384ff), as amended by section 531 of the Departments of Veterans Affairs, Housing and Urban Development, and Independent Agencies Appropriations Act of 2000, (Public Law 106-74, October 20, 1999, 113 Stat. 1109ff), as amended by the Mark-to-Market Extension Act of 2001 (Title VI of Public Law No. 107-166, January 10, 2002, 115 Stat. 2177), and as further amended by H.R. 20 (Public Law 110-5) Revised Continuing Appropriations Resolution, 2007 Section 21043, which made changes to Section 579 to extend the statute and allow new referrals until October 1, 2011. The Office of Affordable Housing Preservation (OAHP) administers the Mark-to-Market program (M2M). |
| OBJECTIVES |
| To retain critical affordable housing resources represented by the supply of FHA-insured Section 8 assisted housing and maintain it in good physical and financial condition while, at the same time, reducing the cost of the ongoing Federal subsidy. In carrying out the Program, HUD works with willing participating administrative entities (PAEs), owners and lenders to reduce Section 8 rents and operating expenses to true market levels and also provide for the project's capital improvement needs. |
| TYPES OF ASSISTANCE |
| Direct Payments for Specified Use. |
| USES AND USE RESTRICTIONS |
| Participating owners who undergo a mortgage restructuring must execute a use agreement committing to maintaining affordable housing for 30 years. |
| Applicant Eligibility |
| The project must be subject to a FHA- insured mortgage and supported by project-based Section 8 HAP contracts with rent levels which, in the aggregate, exceed Comparable Market Rents. |
| Beneficiary Eligibility |
| The project owner and individuals/families who are project tenants. |
| Credentials/Documentation |
| Owner will submit a request to enter Mark-to-Market at least 120 days prior to the expiration of the HAP contract and certify the property is eligible to participate. The owner must not have been suspended or disbarred. |
| Preapplication Coordination |
| Owner must submit a letter of intent to the Multifamily Director of the local HUD Field Office. This program is excluded from coverage under E.O. 12372. |
| Application Procedure |
| Owner must submit a letter of intent to the Multifamily Director of the local HUD Field Office at least 120 days prior to HAP expiration. Owner may also submit a letter of intent to the local HUD field office during the term of the Section 8 HAP contract to be considered as an outyear transaction. |
| Award Procedure |
| Not applicable. |
| Deadlines |
| Applications are due 120 days prior to expiration of Section 8 contract as well as during the term of the Section 8 HAP contract. |
| Range of Approval/Disapproval Time |
| Eligibility to participate in the program is determined within 30 business days of OAHP's receipt of submission. Restructuring and refinancing process should take no longer than 12 months. |
| Appeals |
| If the owner is not programmatically eligible there is not an appeal process as this is determined by legislative authority. There are two levels of appeals for a "Restructuring Commitment" or rejection of a Restructuring Plan. An appeal may be submitted in writing (with a copy to the Participating Administrative Entity) to the Portfolio Director of Office of Affordable Housing Preservation, within 30 calendar days of the issuance date of Restructuring Commitment. A second level appeal may be made within 10 days of notice, requesting an administrative review by OAHP Headquarters. |
| Renewals |
| Section 8 contracts will only be issued on an annual basis with terms of up to five years for a rent restructuring (M2M Lite) and up to 20 years for a mortgage restructuring (M2M Full). |
| Formula and Matching Requirements |
| Not applicable. |
| Length and Time Phasing of Assistance |
| Section 8 contracts are issued on an annual basis as long as the property remains eligible. Owners of projects that undergo a mortgage restructuring shall commit to maintain project affordability for 30 years. |
| Reports |
| As required by Section 8 and future program guidelines. |
| Audits |
| Annual audits are required. |
| Records |
| As required by Section 8 and future program guidelines. |
| Account Identification |
| 86-4072-0-3-371. |
| Obligations |
| FY 07 $148,000,000; FY 08 est. $253,000,000; and FY 09 est. $14,000,000. |
| Range and Average of Financial Assistance |
| Partial payment of claims may be made up to the amount of the unpaid principal balance of the FHA insured mortgage. Section 8 contracts will be provided at comparable market rents, or with exception rents in cases where the loss of units would adversely effect the tenants or community because of a lack of affordable housing. |
| PROGRAM ACCOMPLISHMENTS |
| OAHP has completed/closed 3,110 projects representing 264,563 units. The breakdown in Fiscal Years is as follows: 195 projects (15,830) in FY 2007; 260 projects (19,938 units) in FY 2006; 369 projects(33,333 units) in FY 2005; 456 projects (37,520 units) in FY 2004; 408 projects (35,868 units) in FY 2003; 426 projects (37,383 units) in FY 2002; 557 projects (45,717 units)in FY 2001; and 439 projects (38,974 units) in FY 2000 under the M2M Program. In Fiscal Year 2008, OAHP estimates that 110 projects (9,549 units) will be completed/closed under the M2M program. These estimates are based on an OAHP projection of anticipated workload, which is, in part, based on an estimate of market rents for contracts expiring in the future. These projections may be affected by owner decisions, real estate market trends, accuracy of the REMS data base, and future legislative changes relative to M2M eligible properties. |
| REGULATIONS, GUIDELINES, AND LITERATURE |
| Final Rule 24 CFR 401 titled Multifamily Housing Mortgage and Housing Assistance Restructuring Program (Mark-to-Market) Final Regulations are published in the Federal Register, Volume 65, No. 56, dated Wednesday, March 22, 2000, as corrected in the September 6, 2000 Federal Register Volume 65, No. 173 (final rule; correction). |
| Regional or Local Office |
| The Office of Affordable Housing Preservation has two preservation office locations: Chicago Preservation Office: Harry West; Preservation Director, Office of Affordable Housing Preservation; Metcalfe Federal Building, 77 West Jackson Blvd., Room 2301, Chicago, IL 60604. Telephone: (312) 886-4133 Ext. 2371. Washington Preservation Office: Donna Rosen; Preservation Director, Office of Affordable Housing Preservation; The Portals Building, Suite 380, 1280 Maryland Ave., S.W., Washington, DC 20024. Telephone: (202) 260-2746 Ext. 3768. |
| Headquarters Office |
| Theodore Toon, Deputy Assistant Secretary, Office of Affordable Housing Preservation, Suite 6230, Weaver Federal Building, 451 7th St, S.W., Washington, DC 20410. Telephone: (202) 708-0001. E-mail: m2minfo@hud.gov. |
| Web Site Address |
| http://www.hud.gov/offices/hsg/omhar/index.cfm |
| RELATED PROGRAMS |
| 14.135, Mortgage Insurance_Rental and Cooperative Housing for Moderate Income Families and Elderly, Market Interest Rate; 14.138, Mortgage Insurance_Rental Housing for the Elderly; 14.155, Mortgage Insurance for the Purchase or Refinancing of Existing Multifamily Housing Projects; 14.195, Section 8 Housing Assistance Payments Program_Special Allocations. |
| EXAMPLES OF FUNDED PROJECTS |
| Not applicable. |
| CRITERIA FOR SELECTING PROPOSALS |
| Not applicable. |
|
General Services Administration Office of Chief Acquisition Officer Regulatory and Federal Assistance Division (VIR) |
|