Housing subsidy
contracts are expiring on thousands of privately owned multifamily properties
with federally insured mortgages. Many of these contracts set rents at amounts
higher than those of the local market. As these subsidy contracts expire, the
Mark-to-Market program will reduce rents to market levels and will restructure
existing debt to levels supportable by these rents.
The Office
of Multifamily Housing Assistance Restructuring (OMHAR) was established by the
Multifamily Assisted Housing Reform and Affordability Act of 1997 (MAHRA) to administer
the Mark-to-Market program until sunset on September 30, 2004.
The Department of Housing and Urban Development (HUD) has established
a new office, the Office of Affordable Housing Preservation (OAHP) effective October
1, 2004. The Office of Affordable Housing Preservation was established to assure
the smooth continuation of the Mark to Market program (M2M) utilizing authorities
that continue after the legislative sunset of OMHAR on September 30, 2004. OAHP
will also provide assistance to affordable housing areas in the oversight and
preservation of a wide spectrum of affordable housing programs. OAHP will be charged
with important projects and programs while continuing the success of the M2M program.
OAHP will continue to work with property owners,
Participating Administrative Entities (PAEs), tenants, lenders, and others with
a stake in the future of affordable housing.
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