1、599 PART 401MULTIFAMILY HOUSING MORTGAGE AND HOUSING AS-SISTANCE RESTRUCTURING PRO-GRAM (MARK-TO-MARKET) Subpart AGeneral Provisions; Eligibility Sec. 401.1 What is the purpose of part 401? 401.2 What special definitions apply to this part? 401.3 Who may waive provisions in this part? 401.99 How doe
2、s an owner request a section 8 contract renewal? 401.100 Which projects are eligible for a Re-structuring Plan under this part? 401.101 Which owners are ineligible to re-quest Restructuring Plans? Subpart BParticipating Administrative En-tity (PAE) and Portfolio Restructuring Agreement (PRA) 401.200
3、 Who may be a PAE? 401.201 How does HUD select PAEs? 401.300 What is a PRA? 401.301 Partnership arrangements. 401.302 PRA administrative requirements. 401.303 PRA indemnity provisions for SHFAs and HAs. 401.304 PRA provisions on PAE compensa-tion. 401.309 PRA term and termination provi-sions; other
4、provisions. 401.310 Conflicts of interest. 401.311 Standards of conduct. 401.312 Confidentiality of information. 401.313 Consequences of PAE violations; fi-nality of HUD determination. 401.314 Environmental review responsibil-ities. Subpart CRestructuring Plan 401.400 Required elements of a Restruc-
5、turing Plan. 401.401 Consolidated Restructuring Plans. 401.402 Cooperation with owner and quali-fied mortgagee in Restructuring Plan de-velopment. 401.403 Rejection of a request for a Restruc-turing Plan because of actions or omis-sions of owner or affiliate or project con-dition. 401.404 Proposed R
6、estructuring Commit-ment. 401.405 Restructuring Commitment review and approval by HUD. 401.406 Execution of Restructuring Commit-ment. 401.407 Closing conducted by PAE. 401.408 Affordability and use restrictions re-quired. 401.410 Standards for determining com-parable market rents. 401.411 Guideline
7、s for determining excep-tion rents. 401.412 Adjustment of rents based on oper-ating cost adjustment factor (OCAF) or budget. 401.420 When must the Restructuring Plan require project-based assistance? 401.421 Rental Assistance Assessment Plan. 401.450 Owner evaluation of physical condi-tion. 401.451
8、PAE Physical Condition Analysis (PCA). 401.452 Property standards for rehabilita-tion. 401.453 Reserves. 401.460 Modification or refinancing of first mortgage. 401.461 HUD-held second mortgage. 401.471 HUD payment of a section 541(b) claim. 401.472 Rehabilitation funding. 401.473 HUD grants for reha
9、bilitation under section 236(s) of NHA. 401.474 Project accounts. 401.480 Sale or transfer of project. 401.481 Subsidy layering limitations on HUD funds. 401.500 Required notices to third parties and meeting with third parties. 401.501 Delivery of notices and recipients of notices. 401.502 Notice re
10、quirement when debt re-structuring will not occur. 401.503 Access to information. Subpart DImplementation of the Restructuring Plan After Closing 401.550 Monitoring and compliance agree-ments. 401.552 Servicing of second mortgage. 401.554 Contract renewal and administra-tion. 401.556 Leasing units t
11、o voucher holders. 401.558 Physical condition standards. 401.560 Property management standards. Subpart ESection 8 Requirements for Restructured Projects 401.595 Contract and regulatory provisions. 401.600 Will a section 8 contract be extended if it would expire while an owners re-quest for a Restru
12、cturing Plan is pend-ing? 401.601 Reserved 401.602 Tenant protections if an expiring contract is not renewed. 401.605 Project-based assistance provisions. 401.606 Tenant-based assistance provisions. Subpart FOwner Dispute of Rejection and Administrative Appeal 401.645 Owner request to review HUD dec
13、i-sion. VerDate Mar2010 10:21 May 10, 2011 Jkt 223078 PO 00000 Frm 00609 Fmt 8010 Sfmt 8010 Y:SGML223078.XXX 223078WReier-Aviles on DSKGBLS3C1PROD with CFRProvided by IHSNot for ResaleNo reproduction or networking permitted without license from IHS-,-,-600 24 CFR Ch. IV (4111 Edition) 401.1 401.650
14、When may the owner request an ad-ministrative appeal? 401.651 Appeal procedures. 401.652 No judicial review. AUTHORITY: 12 U.S.C. 1715z1 and 1735f 19(b); 42 U.S.C. 1437(c)(8), 1437f(t), 1437f note, and 3535(d). SOURCE: 65 FR 15485, Mar. 22, 2000, unless otherwise noted. Subpart AGeneral Provisions;
15、Eligibility 401.1 What is the purpose of part 401? This part contains the regulations implementing the authority in the Multifamily Assisted Housing Reform and Affordability Act of 1997 (MAHRA) for the Mark-to-Market Program. Sec-tion 511(b) of MAHRA details the pur-poses, and section 512(2) details
16、 the scope, of the Program. 401.2 What special definitions apply to this part? (a) MAHRA means the Multifamily Assisted Housing Reform and Afford-ability Act of 1997, title V of Pub. L. 10565, 42 U.S.C. 1437f note. (b) Statutory terms. Terms defined in section 512 of MAHRA are used in this part in a
17、ccordance with their statutory meaning. These terms are: comparable properties, expiring contract, expira-tion date, fair market rent, mortgage restructuring and rental assistance suf-ficiency plan, nonprofit organization, qualified mortgagee, portfolio restruc-turing agreement, participating admin-
18、istrative entity, project-based assist-ance, renewal, State, tenant-based as-sistance, and unit of general local gov-ernment. (c) Other terms. As used in this part, the term Affiliate means an affiliate of the owner or an affiliate of the pur-chaser, as such terms are defined in section 516(a) of MA
19、HRA. Applicable Federal rate has the mean-ing given in section 1274(d) of the Inter-nal Revenue Code of 1986, 26 U.S.C. 1274(d). Community-based nonprofit organiza-tion means a nonprofit organization that maintains at least one-third of its governing boards membership for low- income tenants from th
20、e local commu-nity, or for elected representatives of community organizations that rep-resent low-income tenants. Comparable market rents has the meaning given in 401.410(b). Disabled family has the meaning given in 5.403(b) of this title. Elderly family has the meaning given in 5.403(b) of this tit
21、le. Eligible project means a project that meets the requirements for eligibility for a Restructuring Plan in 401.100. HUD means a HUD official author-ized to act under the provisions of MAHRA, and otherwise has the mean-ing given in 5.100 of this title. NHA means the National Housing Act, 12 U.S.C.
22、1702 et seq. OAHP means the Office of Affordable Housing Preservation, and any suc-cessor office. Owner means the owner of a project and any purchaser of the project. PAE means a participating adminis-trative entity as defined in section 512(10) of MAHRA, or HUD when appro-priate in accordance with
23、section 513(b)(4) of MAHRA. PCA means a physical condition as-sessment of a project prepared by a PAE under 401.451. PRA means a portfolio restructuring agreement as defined in section 512(9) of MAHRA. Priority purchaser means a purchaser of a project, meeting qualifications es-tablished by HUD, tha
24、t is: (1) A tenant organization; (2) A tenant-endorsed community- based nonprofit organization or public agency; or (3) A limited partnership with a sole general partner that itself is a priority purchaser under this definition. Rental Assistance Assessment Plan means the plan described in section 5
25、15(c)(2) of MAHRA. Restructured rent means the rent de-termined at the time of restructuring in accordance with section 514(g) of MAHRA. Restructuring Plan or Plan means the Mortgage Restructuring and Rental Assistance Sufficiency Plan described in section 514 of MAHRA. Section 8 means section 8 of
26、the United States Housing Act of 1937, 42 U.S.C. 1437f. VerDate Mar2010 10:21 May 10, 2011 Jkt 223078 PO 00000 Frm 00610 Fmt 8010 Sfmt 8010 Y:SGML223078.XXX 223078WReier-Aviles on DSKGBLS3C1PROD with CFRProvided by IHSNot for ResaleNo reproduction or networking permitted without license from IHS-,-,
27、-601 Housing and Multifamily Housing Assistance Restructuring, HUD 401.100 Section 541(b) claim means a claim paid by HUD under an insurance con-tract under authority of section 541(b) of the National Housing Act, 12 U.S.C. 1735f19(b). Tenant organization of a project means an organization that meet
28、s reg-ularly, whose officers are elected by a majority of heads of households of oc-cupied units in the project, and whose membership is open to all tenants of the project. Unit of local government means the smallest unit of general local govern-ment in which the project is located. Voucher means an
29、y tenant-based as-sistance. (d) Conflicts of interest. Additional definitions applicable to 401.310 through 401.313 appear in 401.310. 65 FR 15485, Mar. 22, 2000, as amended at 65 FR 53900, Sept. 6, 2000; 71 FR 2120, Jan. 12, 2006; 72 FR 66038, Nov. 26, 2007 401.3 Who may waive provisions in this pa
30、rt? The Assistant Secretary for Housing- Federal Housing Commissioner may waive any provision of this part, sub-ject to 5.110 of this title. 68 FR 3363, Jan. 23, 2003 401.99 How does an owner request a section 8 contract renewal? (a) Requesting Restructuring Plan. An owner may request a section 8 co
31、ntract renewal as part of a Restructuring Plan by, at least 3 months before the expiration date of any project-based as-sistance, certifying to HUD that to the best of the owners knowledge: (1) Project rents are above com-parable market rents; and (2) The owner is not suspended or debarred or has be
32、en notified by HUD of any pending suspension or debar-ment or other enforcement action, or, if so, a voluntary sale or transfer of the property is proposed in accordance with 401.480. (b) Eligible but not requesting Restruc-turing Plan. If an owner is eligible for a Restructuring Plan but requests a
33、 re-newal of project-based assistance with-out a Plan, in accordance with the ap-plicable requirements in 402.6 of this chapter, HUD will consider the request in accordance with 402.4(a)(2) of this chapter. (c) Not eligible for Restructuring Plan. Section 402.5 of this chapter addresses renewal of p
34、roject-based assistance for a Restructuring Plan. An owner of such a project may also request renewal under 402.4 of this chapter. 65 FR 15485, Mar. 22, 2000, as amended at 65 FR 53900, Sept. 6, 2000 401.100 Which projects are eligible for a Restructuring Plan under this part? (a) What are the requi
35、rements for eligi-bility? To be eligible for a Restruc-turing Plan under this part, a project must: (1) Have a mortgage insured or held by HUD; (2) Be covered in whole or in part by a contract for project-based assistance under (i) The new construction or substan-tial rehabilitation program under se
36、c-tion 8(b)(2) of the U.S. Housing Act of 1937 as in effect before October 1, 1983; (ii) The property disposition program under section 8(b) of the U.S. Housing Act of 1937; (iii) The moderate rehabilitation pro-gram under section 8(e)(2) of the United States Housing Act of 1937; (iv) The loan manag
37、ement assistance program under section 8 of the United States Housing Act of 1937; (v) Section 23 of the United States Housing Act of 1937 as in effect before January 1, 1975; (vi) The rent supplement program under section 101 of the Housing and Urban Development Act of 1965; (vii) Section 8 of the
38、United States Housing Act of 1937, following conver-sion from assistance under Section 101 of the Housing and Urban Development Act of 1965; or (viii) Section 8 of the U.S. Housing Act of 1937 as renewed under section 524 of MAHRA; (3) Have current gross potential rent for the project-based assisted
39、 units that exceeds the gross potential rent for the project-based assisted units using comparable market rents; (4) Have a first mortgage that has not previously been restructured under this part or under HUDs Portfolio Re-engineering demonstration authority as defined in 402.2(c) of this chapter;
40、VerDate Mar2010 10:21 May 10, 2011 Jkt 223078 PO 00000 Frm 00611 Fmt 8010 Sfmt 8010 Y:SGML223078.XXX 223078WReier-Aviles on DSKGBLS3C1PROD with CFRProvided by IHSNot for ResaleNo reproduction or networking permitted without license from IHS-,-,-602 24 CFR Ch. IV (4111 Edition) 401.101 (5) Not be a p
41、roject that is described in section 514(h) of MAHRA; and (6) Otherwise meet the definition of eligible multifamily housing project in section 512(2) of MAHRA or meet the following three criteria: (i) The project is assisted pursuant to a contract for Section 8 assistance re-newed under section 524 o
42、f MAHRA; (ii) It has an owner that consents for the project to be treated as eligible; and (iii) At the time of its initial renewal under section 524, it met the require-ments of section 512(2)(A), (B), and (C) of MAHRA. (b) When is eligibility determined? Eli-gibility for a Restructuring Plan under
43、 paragraph (a) of this section is deter-mined by the status of a project on the earlier of the termination or expiration date of the project-based assistance contract, which includes a contract re-newed under section 524 of MAHRA, or the date of the owners request to HUD for a Restructuring Plan. El
44、igibility is not affected by a subsequent change in status, such as contract extension under 401.600 or part 402 of this chap-ter. 71 FR 2121, Jan. 12, 2006 401.101 Which owners are ineligible to request Restructuring Plans? (a) Mandatory rejection. The request of an owner of an eligible project wil
45、l not be considered for a Restructuring Plan if the owner is debarred or sus-pended under 2 CFR part 2424. (b) Discretion to reject. HUD may also decide not to accept a request for a Re-structuring Plan if: (1) An affiliate is debarred or sus-pended under 2 CFR part 2424; or (2) HUD notifies the own
46、er that HUD is engaged in a pending suspension, de-barment or other enforcement action against an owner or affiliate, and the grounds for the pending action are in-cluded in 401.403(b)(2)(ii). (c) Exception for sale. This section does not apply if a sale or transfer of the property is proposed in ac
47、cordance with 401.480. (d) Notice to tenants. The PAE or HUD will give notice to tenants of a rejec-tion in accordance with 401.500(f)(2), 401.501, and 401.502. 65 FR 15485, Mar. 22, 2000, as amended at 72 FR 66038, Nov. 26, 2007; 72 FR 73496, Dec. 27, 2007 Subpart BParticipating Adminis-trative Ent
48、ity (PAE) and Port-folio Restructuring Agreement (PRA) 401.200 Who may be a PAE? A PAE must qualify under the defini-tion in section 512(10) of MAHRA. It must not have any outstanding viola-tions of civil rights laws, determined in accordance with criteria in use by HUD. If the PAE is a private enti
49、ty, whether nonprofit or for-profit, it must enter into a partnership with a public purpose entity, which may include HUD. A PAE may delegate responsibil-ities only as agreed in the PRA. 401.201 How does HUD select PAEs? (a) Selection of PAE. HUD will select qualified PAEs in accordance with the criteria established in 513(b) of MAHRA and criteria established by HUD. The selection method is within HUDs dis-cretio
