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The Mark-to-Market program preserves affordability and availability of low income rental multifamily properties with federally insured program. The purpose of the Mark-to-Market program is to reduce rents to market levels by restructuring existing debt to levels supportable by these rents. This proposed rule would revise the Mark-to-Market program regulations to clarify that all annual adjustment of restructured rents under the program will be based on an operating cost adjustment factor determined by HUD. The current regulations authorize HUD to approve rent adjustments on a budget basis; however, HUD has never exercised this authority. This policy is reflected in all Mark-to-Market program renewal contracts, which specify that contract rents will be adjusted annually by an operating cost factor and that no other rent adjustments will be made during the term of the contract. The proposed rule will bring greater clarity to the Mark-to-Market program by conforming the regulations to longstanding HUD practice and the terms of the renewal contracts.