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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. 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.
RAD
- We are proud to announce that public housing properties converting through RAD have now generated over $10 billion in construction investment for the improvement and replacement of 140,000 units of deeply affordable homes. RAD continues to demonstrate that it is a powerful tool to preserve and improve public housing properties and create better conditions for residents. Read more about it here. (11/12/2020)
- In a new case study from HUD's Office of Policy Development and Research, we explore how the housing authority of Westbrook, Maine was able to utilize RAD to perform a $7M renovataion to the Riverview Terrace and Larrabee Woods properties in order to continue providing affordable housing to low-income seniors. (9/29/2020)
- HUD has published a brief new Notice providing supplemental COVID-19 guidance for PHAs and owners converting properties through RAD. The Notice describes the availability of Operating Fund CARES Act funds for public housing properties that have converted or that will convert in Calendar Year 2020. In addition, complementing FAQs that provide guidance to PHAs and owners on conducting remote resident meetings, this Notice permits PHAs to conduct one-on-one or small group resident meetings, instead of larger group meetings. For more information, access Housing H-2020-09 / Notice PIH-2020-26 here. (9/18/2020)
- The Poverty & Race Research Action Council has published a Guide for Successful Implementation of Rental Assistance Demonstration (RAD) Choice-Mobility. This new publication highlights recommended practices for public housing agencies (PHAs) and project owners of converted public housing properties on the effective implementation of the “Choice-Mobility” option. (9/1/2020)
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)
- 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.
- 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.