About Mark-to-Market

Mark-to-Market

Post Mark-to-Market

A component of the M2M program, Post M2M addresses the processing of owner requests to refinance or to sell a property that has received the benefits of a debt restructuring under M2M or M2M Program’s predecessor program, the Portfolio Reengineering Demonstration Program (Demo Program). This also applies to applications for either debt assumption or forgiveness for a non-profit qualified by HUD for such benefits (QNP). These procedures require coordination between the Office of Recapitalization (Recap) and other staff within Multifamily Housing (typically Field Office staff). All inquiries and requests related to Post Mark-to-Market (Assumption Subordination and Qualified Non Profit) transactions, which have been traditionally mailed and/or emailed should be submitted electronically to PostM2M@hud.gov. Post M2M Processing documentation is also available:

NEW! Guidelines for Certain HUD Approvals Regarding Properties Encumbered by HUD-Held Markto-Market Program Debt and Portfolio Reengineering Demonstration Program Debt (Note: This Notice supercedes Notice H 2012-10 and Appendix C of the Mark-toMarket Operating Procedures Guide) (06/30/2021)
Draft M2M Waiver Request Applicant Checklist
M2M Waiver Request Application (Microsoft Excel: Use Microsoft Edge or Internet Explorer to View/Open the File)

Diagram: Post Mark-to-Market scenarios when Recap gets involved, Colors are orange, yellow, blue, green and gray with white writing. — Diagram: Post Mark-to-Market scenarios when Recap gets involved.

The Mark-to-Market (M2M) 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.

Owner/Project Eligibility

In order to participate in the M2M program, owners/projects are required to meet the eligibility criteria in the diagram below.

Regulation, Legislation and Notices

Multifamily Assisted Housing Reform and Affordability Acts of 1997 (aka "MAHRA") was included in the Departments of Veterans Affairs, HUD and Independent Agencies Appropriations Acts, 1998. MAHRA was enacted to reduce the cost of federal housing assistance, enhance HUD's administration of such assistance, and to ensure the continued affordability of units in certain multifamily housing projects. Project owners with rents greater than market may request to participate in the Mark- to- Market program authorized by MAHRA. Contracts are renewed at existing rent levels temporarily while the mortgage is being restructured.
The Final Rule implements the legislation that created a Mark-to-Market program through which Section 8 rents for multifamily projects with HUD-insured or HUD-held mortgages will be reduced.

M2M Resources

Operating Procedures Guide (OPG), M2M Guidelines and Processing Tools
The Mark-to-Market System
Mark-to-Market Green Initiative
Environmental Guidance and Lead Based Paint for M2M Properties
Multifamily Section 8 Contracts Renewals
Clarification of Recap's Waiver Policy

M2M Reports

The M2M Transactions 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. (Latest Update March 15, 2022: PDF | Excel). This report is updated quarterly. For additional questions contact Recap's Systems Support Manager. | Note: Use Microsoft Edge or Internet Explorer to View/Open the Excel File

M2M Interest Group Information