Before the Fourth of July recess, the House Appropriations Committee passed the 2023 THUD budget bill. Included in this bill is a provision that allows properties that have gone through a Mark to Market mortgage restructuring to adjust their rents to the lower of comparable market or budget-based rents. This will allow a property owner to address physical needs as well as health and safety deficiencies. In exchange for this increase, the owner agrees to extend the affordability and use restrictions for an additional 20 years.
Passing the House Appropriations Committee is just the first step. The full House is expected to vote later in July. After the Fourth of July recess, the Senate Appropriations Committee will convene and begin drafting their budget.
This change would help many M2M properties with necessary recapitalizations.