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Office of Recapitalization
Recap Preservation Mission

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. The following programs are being implemented by Recap:

Mark-to-Market (M2M): 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.

Rental Assistance Demonstration (RAD): 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. For more information visit the RAD web page.

Section 236 Preservation: This program serves as a centralized processing model for the majority of Section 236 preservation activity through Recap. Section 236 property owners and purchasers will no longer submit applications to the Multifamily Hub or Program Center. This modification of HUD’s current Section 236 transaction procedures 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.

Pre-1974 Section 202 Direct Loan Preservation: HUD is pleased to announce that with the publication of two Housing Notices published this year (described below) there are now 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. HUD has also developed a 2-page flyer, “Key Concepts for Preservation of Pre-1974 Section 202 Direct Loan Properties,†to assist owners with understanding the preservation options. HUD is also developing a webinar on this topic, which will be announced at a future date. For more information visit the Pre-1974 Section 202 Direct Loan Preservation (formerly SPRAC) web page. Note: The SPRAC program has completed. For historial information email us at sprac@hud.gov.

What's New at Recap?

RAD

  • HUD has published, "RAD Resident Rights in Public Housing" for resident of public housing properties, participating in RAD. This brochure was created to replace the "RAD Facts Sheets" and provides greater detail on each of the resident rights and protections that HUD requires as a public housing property converts through RAD. For more information visit our "How Does RAD Impact Me?" web page. (8/14/2020)
  • Updates available for the Closed Transactions under 2nd Component and Potential RAD Mod Rehab Projects lists. For more information visit our RAD 2 web page. (7/22/2020)
  • HUD has published a case study on the Winder Housing Authority (GA), an early RAD adopter which converted it’s entire Public Housing portfolio to project-based Section 8 subsidies. Through this RAD transformation, the Housing Authority was able to increase its cash flow and create the funding to establish the Wimberly Center, a collaborative base of operations for several major community programs conducted by nonprofits and government agencies. The center serves as a community hub delivering education, food security, child enrichment, job training, and other community development services to an estimated 8,000 people annually and up to 150 children daily. Read more about Winder, GA here. (7/8/2020)
  • Multifamily RAD Q&A for COVID-19 is now available. (5/21/2020)

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. (8/14/2020)

 

More Information
  • 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. 
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