The Participating Administrative Entities' (PAEs') play a central role. They are responsible for administering the Mark to Market (M2M) program at the project level and for coordinating processing of the restructuring commitment with FHA underwriting guidelines if a Section 223(a)(7) or other type of FHA insured loan is used to facilitate the restructuring transaction. Their duties include eligibility screening, data collection and due diligence, underwriting, responding to appeals, managing the closing process, and engaging in certain post-closing asset management activities.

PAEs were selected by HUD through a qualifying process, which drew upon state and local housing finance agencies and for-profit and nonprofit entities with experience in multifamily housing finance. PAEs were categorized as "public" or "non public" as described below. Comments, questions and concerns should be discussed with the project’s PAE.

Public Participating Administrative Entities

Public PAEs are comprised of state and local housing finance agencies selected in January 1999 upon completing the qualifying process.

Non Public Participating Administrative Entities

Non public PAEs are nonprofit and for-profit entities under agreement with the Office of Multifamily Housing Programs (MFH) to perform restructuring on eligible properties in the states not within the state and local housing finance agencies' authorized jurisdictions. Eligible Non Public PAEs are under agreement with MFH after a bidding process for eligible M2M property assignments.

* The PAEs are subject to “portfolio restructuring agreements” under Section 513(a) of the Multifamily Assisted Housing Reform and Affordability Act of 1997 (42 USC 1437f Note) (MAHRA)