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Mark-to-Market program

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Mark-to-Market program

As used by the Department of Housing and Urban Development, a HUD program to eliminate higher than market rental rates for low-income housing owned by private developers.There was nothing wrong with this,originally.HUD wanted to encourage developers to build such housing, so it offered to subsidize the rents and pay developers the difference between the income-based rents paid by the tenants and a developer-set unit rent that could be higher than local market conditions. If developers could receive above-market rents and income guaranteed by HUD,anyone would naturally start building lots of low-income housing.Now,however,the properties have been enjoying above-market rents for many years,and HUD wants it to end. The Mark-to-Market program is a staged termination of those incentives, requiring low-income housing facilities to charge market rents,and no higher.



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Financing for two of the properties included the restructuring of their existing mortgages through HUD's mark-to-market program, and the third property included the repurchase and extension of a ground lease that was sold to the city.
Finally, the bill extends the Section 8 mark-to-market program for five years through 2011.
GAO-02-953 September 6, 2002 In 1997, Congress established the mark-to-market program to help preserve the availability and affordability of low-income rental housing while also reducing the cost to the federal government of rental assistance provided to low-income households.
 
 
 
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