Mark to market: crisis & opportunity
Article Abstract:
The mark-to-market program can have negative consequences for property owners, lenders and investors. Otherwise known as portfolio re-engineering, mark-to-market requires reduction of above-market rents to true market levels on properties insured by the Federal Housing Administration that get Sec. 8 project-bases assistance. The remainder of the available debt service on these properties is re-organized into a new mortgage, with the Dept. of Housing and Urban Development shouldering some of the financial duties resulting from this process. However, a plan dealing with expiring Sec. 8 contracts in a timely manner is not yet in place, which may force lenders and owners to mark to market on their own. This may then compel owners to disinvest their properties and lenders to claim invented defaults. Increased administrative burdens and higher tax burdens for owners may also result from mark-to-market activities. Guidance for action is given.
Publication Name: Journal of Housing and Community Development
Subject: Sociology and social work
ISSN: 0272-7374
Year: 1996
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HUD's new vision
Article Abstract:
The draft of the Dept. of Housing and Urban Development's (HUD) second reorganization document, 'Blueprint II,' contains proposals that builds on the consolidation initiatives of Congress. In this draft document, the HUD recommends the empowerment of communities, the redesign of all federal affordable housing and the provision of national support for home ownership. The department plans to empower communities by employing such means as tapping the experiences of comprehensive planning for the Empowerment Zones and HOME/Community Development Block Grants. It also wants to empower families by enabling them to make prudent decisions through counseling for jobs and training. The HUD likewise intends to erase the belief of the public and of Congress that housing is an unsuccessful program.
Publication Name: Journal of Housing and Community Development
Subject: Sociology and social work
ISSN: 0272-7374
Year: 1996
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Comment about this article or add new information about this topic:
Mark-to-Market: crisis and opportunity
Article Abstract:
Mark-to-Market is a proposal by the Dept. of Housing and Urban Development (HUD) that involves the reduction of rents from above-market to true-market levels on properties that are insured under various Federal Housing Authority insurance programs and are entitled to Sec. 8 project-based assistance. The available debt service that remains are transformed into a new mortgage. Some of the financial consequences of this process of 'marking to market' would be assumed by the HUD. The department is convinced that setting rents at true market levels and reducing project debt at a supportable level would enable properties to compete in a marketplace where properties are not subsidized and non-project based.
Publication Name: Journal of Housing and Community Development
Subject: Sociology and social work
ISSN: 0272-7374
Year: 1996
User Contributions:
Comment about this article or add new information about this topic:
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