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HUD/OH RIN: 2502-AJ48 Publication ID: Fall 2023 
Title: Mark-to-Market Program Rent Adjustments (FR-6122) 

The Mark-to-Market program preserves affordability and availability of affordable rental multifamily properties with federally insured mortgages. 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 rule revises the Mark-to-Market program regulations to clarify that annual adjustment of restructured rents under the program will be based on an operating cost adjustment factor determined by HUD and to further clarify when HUD may approve rent adjustments on a budget basis. The current regulations authorize HUD to approve rent adjustments on a budget basis; however, HUD has never exercised this authority.  Mark-to-Market program renewal contracts 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 rules will bring greater clarity to the Mark-to-Market program and will align the Mark-to-Market regulations with recent legislative changes, specifically the Consolidated Appropriations Act, 2023 (Pub. L.117-328, December 29, 2022), which amended MAHRA section 515 to add a new subsection allowing budget-based rent adjustments for Mark-to-Market projects.

Agency: Department of Housing and Urban Development(HUD)  Priority: Substantive, Nonsignificant 
RIN Status: Previously published in the Unified Agenda Agenda Stage of Rulemaking: Final Rule Stage 
Major: No  Unfunded Mandates: No 
CFR Citation: 24 CFR 401   
Legal Authority: 12 U.S.C. 1715z-1 and 1735f-19(b)    42 U.S.C. 1437(c)(8), 1437f(t)    1437f note and 3535(d)   
Legal Deadline:  None
Action Date FR Cite
NPRM  07/16/2020  85 FR 43165   
NPRM Comment Period End  09/14/2020 
Final Action  04/00/2024 
Regulatory Flexibility Analysis Required: No  Government Levels Affected: None 
Small Entities Affected: No  Federalism: No 
Included in the Regulatory Plan: No 
Public Comment URL:  
RIN Data Printed in the FR: No 
Agency Contact:
William A. Lavy
Director, Program Administration Office
Department of Housing and Urban Development
Office of Housing
451 7th Street SW,
Washington, DC 20410
Phone:202 708-0001