National Alliance of HUD Tenants

A multi-cultural, tenant-controlled alliance of tenant organizations in privately-owned, multifamily HUD-assisted housing. Hundreds of tenant associations representing thousands of tenants in every region of the country are already involved, with affiliated coalitions in 32 states, working together to:

Preserve affordable housing * Protect tenant's rights * Promote tenant ownership and control

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NAHT Conference M2M Workshop
An introductory workshop for tenants.
© 2003 Coalition for Economic Survival
Advocates Restructuring Guide Comprehensive, In depth booklet produced by the National Housing Law Project. Great for Tenant Leaders, organizers, advocates and attorneys who need more in-depth information about the Mark-to-Market program.
© 2003 National Housing Law Project.

In October, 1997, Congress passed a new law designed to reduce the government's costs for multifamily assisted housing. Many assisted projects recieve rents from HUD that are higher than the building's units would earn on the open market. The new bill created a program called "mark-to-market" (M2M) that cuts the amount of money these projects will receive from HUD while reducing the loan obligations owed by the projects owners. This page contains some basic information about the Mark-to-Market program and how it works.

WHAT IS MARK-TO-MARKET?
Mark-to-Market (M2M) is a program designed to do an important job: help assisted housing projects-- like the one tenants live in--work for everyone. This page will explain the M@M process, and how tenants can participate. But before getting down to the details, please keep this in mind: Tenants will not lose their assisted housing because of M2M. It will help preserve decent affordable housing for you and other for years to come. In some cases, the residents of the property may be provided with a voucher that permits them to stay in their current home or move to another affordable property. HUD, through the Office of Multifamily Housing Assistance Restructuring (OMHAR), will administer M2M the a Participating Administrative Entity (PAE). The PAE may be a state or local housing finance agency or other entity selected by HUD and will be responsible for including tenants in the M2M process and negotiating the M2M process with the owners. You have the right to know whether the owner of your property is planning to participate in the M2M process. This page explains M2M and how you can take part in it. You and other tenants can make a difference in what happens to your housing!!
HOW CAN M2M HELP EVERYONE?	WHY IS M2M NEEDED?
M2M works for tenants by... Ensuring that tenants can continue to rent housing at affordable rents. Repairing the properties as needed so they continue to offer a decent place to live. Making sure property managers are able to their job by keeping properties clean and in good condition, maintaining good relations with tenants, and doing what they can to make sure the buildings are safe places to live. Guaranteeing the property will continue to provide affordable housing for the next 30 years.	The rent many residents of affordable housing pay meets only part of the actual cost of operating the housing in which they live. HUD makes up the difference b y paying a Section 8 subsidy to the owner. To increase the supply of affordable housing, HUD agreed to provide subsidies and insure mortgages for multifamily housing, and in return the owners agreed to rent to lower income households. Over the years, however, HUD subsidies at some assisted properties have risen to levels above the competitive market rents for the area. To reduce the high cost of providing subsidies while ensuring the continued success of the properties, HUD developed the M2M program.

A property owner must decide to enter the program at least three months before the property's Section 8 contract expires. HUD will then determine whether the property is eligible for M2M. The Participating Administrative Entity (PAE) or owner will inform tenants of the owner's decision and HUD's eligibility determination.

If the property is eligible, the owner works with the PAE and the lender to develop a new financial plan so that the property's finances will allow lower Section 8 subsidies. The PAE will give tenants the opportunity to review a full restructuring plan before it is submitted to HUD.
After the plan is put into place, HUD or the PAE monitors the property to make sure the plan is implemented. Tenants can help enforce the plan.
As part of M2M, HUD will asses the condition of the buildings, the management, and many other things to make sure the housing will be safe, decent, and affordable.

Participating Administrative Entities (PAE's) are required by OMHAR to release most of the restructuring plan and supporting materials that are submitted by owners to the PAE's for review and tenant input. This is a Sample redacted plan prepared by OMHAR and released to NAHT. If you have any problems acquiring a copy of the plan for your development, please contact your nearest NAHT affiliate.