{"id":11087,"date":"2024-02-29T16:39:14","date_gmt":"2024-02-29T21:39:14","guid":{"rendered":"https:\/\/www.us-hc.com\/?p=11087"},"modified":"2024-02-29T16:40:08","modified_gmt":"2024-02-29T21:40:08","slug":"new-budget-based-rent-adjustment-options-for-m2m-properties","status":"publish","type":"post","link":"https:\/\/www.us-hc.com\/blogs\/new-budget-based-rent-adjustment-options-for-m2m-properties\/","title":{"rendered":"New Budget Based Rent Adjustment Options For M2M Properties"},"content":{"rendered":"<h2>New Budget Based Rent Adjustment Options For M2M Properties<\/h2>\n<p>HUD\u2019s Office of Multifamily Housing Programs published <a href=\"https:\/\/www.hud.gov\/sites\/dfiles\/OCHCO\/documents\/2024-05hsgn.pdf?utm_medium=email&amp;utm_source=govdelivery\">Notice 2024-05<\/a>, which implements new authority to make BBRA for Section 8 PBRA contracts subject to M2M Use Agreements. This notice identifies a \u201cFirst Priority Group\u201d who are invited to apply for these rent adjustments. Any properties who meet the requirements to be considered part of this group are eligible to apply now.<\/p>\n<h3>What Properties are in the First Priority Group?<\/h3>\n<p>Group A properties must in good standing at the time of closing, but include properties with REAC scores below 30 or successive failed REAC Inspections. Additionally, Group A properties include:<\/p>\n<ul>\n<li>Properties with operating cost coverage ratios less than 1.0<\/li>\n<li>The financial statements for a property indicate that the owner has made owner contributions in excess of $3,000 per unit in the most recent year, or more than $1,500 per unit in each of the last three fiscal years.<\/li>\n<li>Properties with mortgage debt that has been acquired by HUD through a payment of claim on a loan insured by FHA.<\/li>\n<li>Properties with an average vacancy rate equal to or exceeding 25% for the most recent 24-month period.<\/li>\n<\/ul>\n<h4>How Can a Property Apply?<\/h4>\n<p>Eligible Post M2M Properties can submit an initial submission through a form located on <a href=\"https:\/\/www.hud.gov\/program_offices\/housing\/mfh\/presrv\/presmfh\/aboutm2m\/postm2m?utm_medium=email&amp;utm_source=govdelivery\">HUD\u2019s Post M2M website<\/a>. Applications will be reviewed on a first come, first serve basis, and with the limited funding available to HUD, owners and managers of eligible properties are encouraged to apply quickly before the March 28, 2024 deadline.<\/p>\n<p>HUD will invite owners that qualify to submit a Final Submission, pending funding availability. The Final Submission will contain all the necessary documentation to confirm eligibility and allows HUD to conduct a complete evaluation of the project to assess the needed BBRA.<\/p>\n<h4>What is Needed to Apply<\/h4>\n<p>Owners submitting applications will be required to submit a new Capital Needs Assessment using the E-Tool, and it must be inclusive of a Green Analysis. The CNA must have been created within 180 days of the final submission. There are a number of other documents required as well, including a rent comparability study (RCS), detailed operating pro formas, and plans for addressing any MOR and financial issues.<\/p>\n<p>For properties struggling to meet operational goals due to rent levels insufficient to cover costs, this is a terrific opportunity. If you need assistance with preparing a Capital Needs Assessment with Green Analysis and E-Tool submission, our asset management department can help you ensure that all of the property\u2019s long-term needs are included to maximize the effectiveness of this rent restructuring.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>New Budget Based Rent Adjustment Options For M2M Properties HUD\u2019s Office of Multifamily Housing Programs published Notice 2024-05, which implements new authority to make BBRA for Section 8 PBRA contracts&#8230;<\/p>\n","protected":false},"author":1,"featured_media":11088,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"om_disable_all_campaigns":false,"inline_featured_image":false,"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"_uf_show_specific_survey":0,"_uf_disable_surveys":false,"_price":"","_stock":"","_tribe_ticket_header":"","_tribe_default_ticket_provider":"","_tribe_ticket_capacity":"0","_ticket_start_date":"","_ticket_end_date":"","_tribe_ticket_show_description":"","_tribe_ticket_show_not_going":false,"_tribe_ticket_use_global_stock":"","_tribe_ticket_global_stock_level":"","_global_stock_mode":"","_global_stock_cap":"","_tribe_rsvp_for_event":"","_tribe_ticket_going_count":"","_tribe_ticket_not_going_count":"","_tribe_tickets_list":"[]","_tribe_ticket_has_attendee_info_fields":false,"footnotes":""},"categories":[6,26],"tags":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v22.5 (Yoast SEO v22.5) - 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