On May 14, HUD published Housing Notice 2012-10, entitled “Guidelines for Assumption, Subordination, or Assignment of Mark-to-Market (M2M) Loans in Transfer of Physical Assets (TPA) and Refinance Transactions.” The Notice outlines the application process and review criteria for owners who seek to refinance or sell a property that has been restructured under the Mark-to-Market program. In addition, the Notice makes updates to the program, including:

  • Removes the “three-year policy” for qualified non-profit purchasers to request debt relief;
  • Specifies review criteria for determining the preservation needed for the Office of Affordable Housing Preservation’s approval for debt relief;
  • Adds additional considerations for preservation projects meeting certain criteria, making them easier to qualify for debt relief;
  • Removes the use of Makeup Payments.

Click here for the full text of the Notice.