Podcast
Questions and Answers
What is the primary requirement for a property to be classified as a Group A Property?
What is the primary requirement for a property to be classified as a Group A Property?
- The property must have two consecutive REAC scores less than 60.
- The property must have a REAC score less than 30. (correct)
- The property must have owner contributions over $3,000 per unit in the last year.
- The property must have an Operating Cost Coverage Ratio less than 1.0.
What is the primary requirement for a property to be classified as a Group B Property?
What is the primary requirement for a property to be classified as a Group B Property?
- The property must have a REAC score between 30 and 59.
- The property must have a vacancy rate greater than or equal to 25% for 24 months.
- The property must have owner contributions over $1,500 per unit in the last year.
- The property must have a Debt Service Coverage Ratio less than 1.0. (correct)
Which of the following is a requirement for a property to be classified as a Group C Property?
Which of the following is a requirement for a property to be classified as a Group C Property?
- The property must have a REAC score between 30 and 69.
- The property must have a vacancy rate greater than or equal to 15% for 24 months.
- The property must have a substantial open code violation issued by the local government.
- All of the above are requirements for a property to be classified as a Group C Property. (correct)
What is the purpose of the appendix provided in the text?
What is the purpose of the appendix provided in the text?
What is the primary purpose of the Section 8 Renewal Guide mentioned in the text?
What is the primary purpose of the Section 8 Renewal Guide mentioned in the text?
What is the primary requirement for a property to be classified as a Group D Property?
What is the primary requirement for a property to be classified as a Group D Property?
When is an Owner eligible to request a second BBRA for the same Property?
When is an Owner eligible to request a second BBRA for the same Property?
What must an Owner do if they fail to implement the rehabilitation as required in the Closing documents?
What must an Owner do if they fail to implement the rehabilitation as required in the Closing documents?
What is the Owner required to do regarding the affordability and use restrictions?
What is the Owner required to do regarding the affordability and use restrictions?
For an Owner with a HAP Contract for which rent levels were set at the time of its initial renewal under Section 514(g)(1), what must they do during the extended term?
For an Owner with a HAP Contract for which rent levels were set at the time of its initial renewal under Section 514(g)(1), what must they do during the extended term?
For an Owner with a HAP Contract for which rent levels were set at the time of its initial renewal under Section 514(g)(2), what must they do during the extended term?
For an Owner with a HAP Contract for which rent levels were set at the time of its initial renewal under Section 514(g)(2), what must they do during the extended term?
After the affordability and use restrictions have been maintained for what period of time can an Owner with a HAP Contract under Section 514(g)(1) or 514(g)(2) renew the HAP Contract under Section 524 of MAHRA?
After the affordability and use restrictions have been maintained for what period of time can an Owner with a HAP Contract under Section 514(g)(1) or 514(g)(2) renew the HAP Contract under Section 524 of MAHRA?
What is the purpose of the Mark-to-Market program according to the text?
What is the purpose of the Mark-to-Market program according to the text?
What is the main purpose of the Multifamily Assisted Housing Reform and Affordability Act of 1997 (MAHRA)?
What is the main purpose of the Multifamily Assisted Housing Reform and Affordability Act of 1997 (MAHRA)?
Which entities are involved in processing budget-based rent adjustments for Mark-to-Market properties according to the text?
Which entities are involved in processing budget-based rent adjustments for Mark-to-Market properties according to the text?
What type of housing assistance payment (HAP) contracts are subject to budget-based rent adjustments?
What type of housing assistance payment (HAP) contracts are subject to budget-based rent adjustments?
What is one of the key features of the Mark-to-Market program?
What is one of the key features of the Mark-to-Market program?
Why was the M2M program established according to the text?
Why was the M2M program established according to the text?
Study Notes
HAP Contracts and M2M Use Agreement
- HAP Contracts must be coterminous with the M2M Use Agreement.
- For renewal requirements and contract forms, refer to Chapter 5 of the Section 8 Renewal Guide.
Group Status Definitions
- Group A Properties: Must meet one of the following criteria
- REAC score < 30
- 2 consecutive REAC scores < 60
- Operating Cost Coverage Ratio < 1.0
- Owner Contributions of over $3,000 per unit in the last year or a 3-year record of Owner Contributions over $1,500 per unit per year
- Property is with the Multifamily Property Disposition Center
- Vacancy Rate >= 25% for 24-months
- Group B Properties: Must meet two of the following criteria
- REAC score is 30-59
- Debt Service Coverage Ratio < 1.0
- Owner Contributions of over $1,500 per unit in the last year or a 3-year record of Owner Contributions over $750 per unit per year
- 25% > Vacancy Rate >= 15% for 24-months
- Substantial open code violation issued by the local government
- Pass-through due to disaster
- 20% of residents displaced due to disaster
- Property identified by HUD staff as severely damaged due to disaster and repairs are in progress
- Group C Properties: Must meet three of the above criteria
Budget-Based Rent Adjustments (BBRAs)
- An Owner may not request a second BBRA for the same Property unless at least three months have passed since HUD published a notice permitting all eligible properties to request a BBRA.
- A second BBRA request must comply with any prioritization in effect at that time.
Rehabilitation and Affordability
- The scope of work identified in the Closing documents must be completed.
- In the event the Owner fails to implement the rehabilitation as required in the Closing documents, HUD may take such action against the Owner as allowed by law.
- The Owner agrees to extend the affordability and use restrictions required under Section 514(e)(6) of MAHRA for an additional twenty years.
HAP Contract Renewal
- An Owner with a HAP Contract for which rent levels were set at the time of its initial renewal under Section 514(g)(1) may renew the HAP Contract under Section 524 of MAHRA for and during such extended term.
- An Owner with a HAP Contract for which rent levels were set at the time of its initial renewal under Section 514(g)(2) shall renew the HAP Contract under Section 524 of MAHRA for and during such extended term.
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Description
Test your knowledge on HUD housing rehabilitation guidelines including rules for requesting a second BBRA and completing the scope of work in closing documents.
