HUD recently published a draft notice, ‘‘Guidelines for Certain HUD Approvals Regarding Properties Encumbered by HUD-Held Mark-to-Market Program Debt and Portfolio Reengineering Demonstration Program Debt,’’ for public feedback. The draft notice, posted on the Multifamily Housing Drafting Table, will replace Housing Notice 2012-10, “Guidelines for Assumption, Subordination, or Assignment of Mark-to-Market (M2M) Loans in Transfer of Physical Assets (TPA) and Refinance Transactions” in its entirety and provide new instructions for the acquisition and/or refinancing of projects after they have been through a Mark-to-Market Program debt restructuring or a Portfolio Reengineering Demonstration Program restructuring and are encumbered by HUD-held debt. In addition, Section 3 of the draft notice would replace Appendix C of the Mark-to-Market Operating Procedures Guide regarding transfers of assets to qualified nonprofits. Section 4 covers matured and outstanding Mark-to-Market or Demonstration Program debt, and Section 5 provides supplemental guidance that may also be relied upon by owners of projects with satisfied Mark-to-Market subordinate debt obligations that remain encumbered by a Mark-to-Market Use Agreement and continue to benefit from a Full Mark-to-Market Renewal Contract.
NAHMA is encouraging members to directly send comments electronically to postM2M@hud.gov and to please courtesy copy NAHMA staff. The deadline for submitting comments to HUD is September 28, 2020. If members can have their comments submitted before 2pm(EST), on Sept. 28, NAHMA can submit a consolidated industry response, based on members feedback.
The Guidelines for Certain HUD Approvals Regarding Properties Encumbered by HUD-Held Mark-to-Market Program Debt and Portfolio Reengineering Demonstration Program Debt draft notice is available here.