During a review of a client’s portfolio, First Capital identified several projects that appeared eligible for Rent Increases under HUD’s Mark Up to Market Program. As an incentive to owners to keep their projects as affordable housing, HUD allows owners to increase their Section 8 rents to rents of comparable unassisted projects under its Mark Up to Market Program. First Capital has used this program extensively to preserve affordable housing and increase an owner’s return. In these transactions, First Capital will obtain a Rent Comparability Study; prepare the Mark Up to Market Rent Increase Application, and close the transaction. In some cases the mortgages are also refinanced, or the project is divested at an increased value.
