3-6. OPTION ONE-B DISCRETIONARY MUTM ELIGIBILITY

Under Section 524(a)(4)(C) of MAHRA, the Secretary may mark rents up to market for projects that are not eligible for MUTM under Section 524(a)(4)(A), Option One-A, but that meet criteria listed in Section 3-2 and subsections A. and B. below. These projects are eligible for a Section 8 contract renewal under Option One-B.

• A. To further preserve the affordable housing stock, the Secretary has the authority under Section 524(a)(4)(C) of MAHRA to mark rents up to market for projects that meet certain criteria. Since enactment of Section 524(a)(4)(C), HUD’s practice has been and continues to be to mark rents to market for eligible projects that meet only one of the three criteria identified in Section 3-6.B. However, if HUD determines that there is or may be a shortage of section 8 appropriations available for any fiscal year, HUD may use the discretion that Section 524(a)(4)(C) provides to mark rents up to market based on the number of criteria identified in Section 3-6.B. that the project meets.