In order to reduce overpayments to property owners, HUD is requiring landlords to reduce rents down to comparable market rates upon the expiration of all project-based subsidy contracts.  Mark to Market (M2M) is the provision property owners receive, enabling them to remain operational by restructuring their mortgage loan financing, while renewing subsidy and use agreements with HUD for another 20 years.  M2M has been a great benefit for both the owners and HUD because it preserves affordable units and reduces HUD payments on project-based subsidy.

Prior to 2007, the NC Housing Coalition administered the Outreach Training and Assistance Grant (OTAG) program under a HUD grant.  At present, HUD has stopped funding the OTAG program, although this may change.  Our work involved meeting with residents to inform them of the importance of their role and participation in the restructuring process.  Tenants were summoned to voice their opinion on the physical condition of their property and the quality of management.  Those comments were then included in planning major capital improvements on the property, which has a long term effect on the tenant’s well-being as well as the property’s value.  This holds property managers accountable and ensures that the developments are positive places for the surrounding neighborhoods through good maintenance and management.

The Coalition’s OTAG staff worked on the ground-level doorknocking apartments to distribute meeting announcements/reminders, holding resident meetings to educate tenants and site managers on M2M and assists in communicating tenant comments to the Participating Administrative Entity (PAE) assigned by HUD to underwrite the restructuring plan.

Another focus of OTAG centered on organizing residents and providing resources to address the immediate needs and areas of concern expressed by tenants.  OTAG staff scheduled and met with residents to regularly to deal with solution to ongoing problems at their apartment community.

Above: Tenants at the 2006 NAHT Conference in Washington DC

Above: Tenant Meeting at Lynnhaven