Multifamily Assisted Housing Reform and Affordability Act (14.197)
Program
14.197 Multifamily Assisted Housing Reform and Affordability Act
Federal Agency
OFFICE OF MULTIFAMILY HOUSING ASSISTANCE RESTRUCTURING (OMHAR), 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), and 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).
Program Number
14.197
Last Known Status
Active
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.
Eligibility Requirements
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.
Application and Award Process
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
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 Public Entity) to the Portfolio Director of Office of Multifamily Housing Assistance Restructuring, 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 renewal by OMHAR Headquarters.
Renewals
Section 8 contracts will only be issued on an annual basis with terms of up to five years for a rent restructuring (OMHAR Lite) and up to 20 years for a mortgage restructuring (OMHAR Full).
Assistance Considerations
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.
Post Assistance Requirements
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.
Program Accomplishments
The Office of Multifamily Housing Assistance Restructuring (OMHAR) completed/closed 1,608 projects representing 124,843 units. The breakdown in Fiscal Years is as follows: 500 projects (approximately 41,103 units) in FY 2002; 611 projects (approximately 45,389 units)in FY 2001; and 497 projects (approximately 38,351 units)in FY 2000 under the Mark-to-Market Program (M2M). In fiscal year 2003, OMHAR estimates that rents will be reduced under the M2M on approximately 470 projects (30,660 units). These estimates are based on an OMHAR 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.
Financial Information
Account Identification
86-4072-0-3-371.
Obligations
FY 02 $421,495,764; FY 03 est $478,240,769; and FY 04 est $354,165,117.
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.
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).
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.
Information Contacts
Regional or Local Office
The Office of Multifamily Housing Restructuring has four Regional Office locations: Chicago Production Office: Harry West; Portfolio Director, Office of Multifamily Housing Assistance Restructuring; 200 West Adams, Suite 2610; Chicago, IL 60606. Telephone: (312) 886-4133 ext. 2508. Central Production Office: Donna Rosen, Portfolio Director; Office of Multifamily Housing Assistance Restructuring; The Portals Building, Suite 4400; 1280 Maryland Avenue, SW; Washington, DC 20024. Telephone: (202) 260-2746 ext. 3768. New York Production Office: Richard Daugherty, Portfolio Director; Office of Multifamily Housing Assistance Restructuring; Jacob K. Javits Federal Building, 26 Federal Plaza, Room 32-102, New York, NY 10278. Telephone: (212) 264-0903 ext. 3665. San Francisco Production Office: F. Dennison Shaw, Jr.; Portfolio Director; Office of Multifamily Housing Assistance Restructuring; Phillip Burton Federal Building; 450 Golden Gate Ave., Room 10-4580; San Francisco, CA 94102. Telephone: (415) 436- 8550 ext. 8543.
Headquarters Office
Charles "Hank" Williams, Director, Office of Multifamily Housing Assistance Restructuring, Suite 4000, 1280 Maryland Avenue, SW., Washington, DC 20024. Telephone: (202) 708-0001. E-mail address m2minfo@hud.gov.
Web Site Address
Examples of Funded Projects
Not applicable.
Criteria for Selecting Proposals
Not applicable.
