6-1. ELIGIBILITY

At the time of contract expiration or termination, a project may renew under Option Four at “exception rents” if:

• The project is exempt from debt-restructuring under section 514(h) of MAHRA: or

• The project does not meet the definition of an “eligible multifamily housing project” under section 512(2) of MAHRA.

• A. The following categories of projects are exempt from debt-restructuring under section 514(h) of MAHRA:

  1. State or Local Government Financing. Projects for which the primary financing or mortgage insurance was provided by a unit of State government or a unit of general local government (or an agency or instrumentality of either) and is insured under the National Housing Act and the implementation of a Mark-to-Market Restructuring Plan would conflict with applicable law or agreements governing such financing.