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HUD Publishes Notice Implementing Authority to Make Budget-Based Rent Adjustments for M2M Properties

Thursday, February 29, 2024 - 1:17PM

The U.S. Department of Housing and Urban Development (HUD) today published a housing notice to implement the authority to make budget-based rent adjustments for Section 8 project-based rental assistance housing assistant payment (HAP) contracts at properties subject to a Mark-to-Market (M2M) use agreement. In addition to Housing Notice 2024-05, HUD announced that it is prioritizing budget-based rent adjustments where the need is the greatest, so owners of M2M properties that meet notice eligibility requirements and one of the criteria defined as "Group A Properties" can apply now, with applications received before 11:59 p.m. ET March 28 deemed received simultaneously. The budget-based rent adjustments will increase contract rents, but assisted residents will continue to pay just 30% of their income to rent and utilities.

Novogradac’s Introduction to HUD Multifamily Rental Housing Programs booklet serves as an updated introduction to HUD’s multifamily programs used most by affordable housing developers.

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