OPG 5.5 Susidy Layering Certification - Non-Standard M2M Transac

OMB No. 2502-0533
(Exp, 09/30/2014)

Mark-to-Market
Form 5.5
Subsidy Layering Certification - Non-Standard M2M Transaction
Project Name: _________________________________________
The Restructuring Plan for the above referenced project was completed in accordance with the
program standards contained in the M2M Operating Procedures Guide (OPG). Because the Plan
involves significant additional sources of government assistance not contained in a standard M2M
transaction such as tax credits and housing bonds, the Restructuring Plan warrants additional
review to determine that the various financial assistance elements of the Plan meets HUD’s
subsidy layering requirements. The Restructuring Plan includes the following elements of financial
assistance:
A new first mortgage provided by: Specify source: ___________________
Reuse of Interest Reduction Payments available from the existing S236 mortgage.
A Partial Payment of Claim
An extension of the existing project based Section 8 assistance.
Low Income Housing Tax Credits
Historic Tax Credits
HOME funds
Other Assistance: Specify nature and amount: ______________________________
The multiple sources of financial assistance contained in the restructuring plan (the Sources) have
been carefully reviewed against the project’s hard and soft costs (the Uses). No overlaps of
Sources and Uses were found. The public housing finance agency awarding the tax credits is
required to perform a subsidy layering review, as is the local or state government agency providing
HOME funds. In completing its subsidy layering analysis the (PAE) has consulted with these
government agencies and has determined that the levels of financial assistance and the specific
project uses meet the provider’s published requirements and has also determined that their
conclusions on subsidy layering issues are consistent with the conclusions certified below.
Pursuant to the subsidy layering review requirements contained in 24CFR401.481, the (PAE) has
performed a subsidy layering review and has determined that the government assistance involved
in the non standard debt restructuring referenced above is not more than is necessary to permit the
project to house tenants with an income mix comparable to the income mix of the project before the
Restructuring Plan is implemented. The (PAE), therefore, certifies that the Restructuring Plan
developed for the project meets HUD’s subsidy layering requirements.

Name of Official:

_________________________

Title: _________________

Signature of Official:

_________________________

Date: _________________

January 2005

Public reporting burden for this collection of information is estimated to average 0.5 hour per
response, including the time for reviewing instructions, searching existing data sources,
gathering and maintaining the data needed, and completing and reviewing the collection of
information. This information is required to obtain benefits. The office of Multifamily Housing,
Office of Affordable Housing Preservation 451 7th Street SW, Room 6216 6230 Washington,
DC 20410. HUD may not collect this information, and you are not required to complete this
form, unless it displays a currently valid OMB control number. Title V of the Departments of
Veterans Affairs and Housing and Urban Development and Independent Agencies
Appropriations Act of 1988 (P.L.106 65, 111 Stat. 1384) authorizes the FHA Multifamily
Housing Mortgage and Housing Assistance Restructuring Program. HUD implemented a
statutory permanent program directed at FHA-insured multifamily projects that have projectbased Section 8contracts with above- market rents. The information collection is used to
determine criteria eligibility of FHA-insured multifamily properties for participation in the Mark
to Market program and the terms on which participation should occur. The purpose of the
program is to preserve low-income rental housing affordability while reducing the long-term
costs of Federal rental assistance. While no assurances of confidentiality are pledged to
respondents, HUD generally discloses this data only in response to a Freedom of Information
request.