Office of Recapitalization
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The "Office of Recap" is responsible for the preservation and recapitalization of federally assisted affordable housing and oversees and processes financial transactions to ensure the long-term physical and financial viability of affordable rental housing. In conducting the business of preservation of affordable housing, Recap is also responsible for ensuring compliance with relevant laws and statutes.
Recap has evolved over the years. It was originally, the "Office of Multifamily Housing Assistance Restructuring" (OMHAR), established in 1997, to administer the Mark-to-Market progam under Multifamily Assisted Housing Reform and Affordability Act of 1997 (MAHRA). It then expanded as result of the growing need for preserving affordable housing and became the Office of Affordable Housing Preservation (OAHP) in 2004 until it's transition into the Office of Recapitalization under the Office of Multifamily.
Currently, the following programs are administered by the Office of Recap to preserve and recapitalize affordable housing:
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Mark-to-Market (M2M)
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Rental Assistance Demonstration (RAD)
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Section 236 Preservation
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Pre-1974 Section 202 Direct Loan Preservation
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| This program preserves affordability and availability of low income rental multifamily properties with federally insured program. The purpose of M2M is to reduce rents to market levels by restructuring existing debt to levels supportable by these rents. The Green Initiative is also available through this program to assist owners in rehabilitating their properties in the most sustainable way feasible. For more information visit the Mark-to-Market web page. | This program allows proven financing tools to be applied to at-risk public and assisted housing. RAD is a central part of the Department's rental housing preservation strategy, which works to preserve the nation's stock of deeply affordable rental housing, promote efficiency within and among HUD programs, and build strong, stable communities. RAD provides service for Public Housing, Rent Supp, RAP, Mod Rehab, Mod Rehab SRO, and PRAC properties. For more information visit the RAD web page. | This program serves as a centralized processing model for the majority of Section 236 preservation activity through Recap where owners and purchasers will no longer submit applications to the Multifamily Program Centers. This procedure modification is designed to streamline how Section 236 prepayment applications and related requests are processed, and to assign dedicated staff to oversee the complex work involved in these transactions. For more information visit the 236 Preservation web page. | Ths program provides two comprehensive options for owners of properties with pre-1974 Section 202 Direct Loans to preserve the affordability of these properties by entering into long-term rental assistance contracts. For more information visit the Pre-1974 Section 202 Direct Loan Preservation web page (formerly SPRAC). Note: The SPRAC program has completed. For historial information email us at sprac@hud.gov. |
Recap Highlights
RAD
- The list of Closed Transactions under 2nd Component and the Potential RAD Mod Rehab Projects has been updated. Visit our RAD for Mod Rehab, Rent Supp and RAP web page for more details. (3/3/2021) Note: Use Microsoft Edge or Internet Explorer to View/Open the Excel File
- Executive Director Q&A: Lavonia Housing Authority, Lavonia, GA. Lavonia Housing Authority is a small, rural agency in Georgia that converted its 180-unit family property through RAD to a Section 8 Project Based Rental Assistance Contract in 2014. We sat down with Executive Director Rick Whitworth to learn why he chose to participate in RAD, how RAD has impacted his agency, and his advice for other housing authorities. Visit our Newsletter web page for more details. (2/22/2021)
- The 2020 RAD Rents are available. The table includes HUD's calculations of RAD Contract Rents for each public housing property based on 2020 Appropriation levels. These rents will form the basis of the conversion rents for properties awarded CHAPS or with amended CHAPs on or after January 1, 2021. For more information visit our Statutes, Notices, Regulations & Tools web page. (12/15/2020) Note: Use Microsoft Edge or Internet Explorer to View/Open the Excel File
Mark-to-Market
- The M2M Transactions Report has been updated and available in PDF and Excel). This report provides a list of all the properties in the Mark-to-Market portfolio, it's ownership information and the last milestone of the property's program in the program. For more information on the M2M program visit our web page. (01/21/2021) Note: Use Microsoft Edge or Internet Explorer to View/Open the Excel File
More Information
- Want to know more on the Office of Recap and Pre-1974 Section 202 Loan Preservation? Read the brochure, “Key Concepts for Preservation of Pre-1974 Section 202 Direct Loan Properties,” which assist owners with understanding the preservation options. For additional information visit our web page.
- Multifamily Housing Preservation pages are now available on HUD Exchange.
- All inquiries and requests related to Post Mark-to-Market (Assumption Subordination and Qualified Non Profit) transactions should be submitted electronically to PostM2M@hud.gov.
Not Sure Who to Contact?
- For RAD Public Housing email rad@hud.gov.
- For RAD Multifamily Housing email rad2@hud.gov.
- For Section 236 Preservation email 236Preservation@hud.gov.
- For Pre 1974 Section 202 Direct Loan Preservation email Pre1974Section202@hud.gov.
- For Mark-to-Market email m2minfo@hud.gov.
- Post Mark-to-Market email PostM2M@hud.gov.
- The Office of Recapitalization Staff Directory is also available.