Note: State and local government financed projects that are not insured under the…

To confirm the exemption, a determination must be made by Recap as to whether implementation of a Mark-to-Market Restructuring Plan conflicts with applicable law, or agreements governing such financing. In these cases, the contract and supporting documentation of the potential conflict must be referred to Recap for review. The owner (or lender) must submit an opinion of counsel in a form acceptable to HUD, along with copies of the relevant financing documents or applicable local or State legal authority.

Upon receipt of the owner’s documentation, Recap will complete its review and notify the AE/CA of its determination generally within 5 business days.

• a. In cases where Recap determines that the project is not (or is no longer) exempt from debt restructuring, the AE/CA will notify the owner that the project may either be processed under B.2. below or the owner may select another renewal option.

Chapter Six – Published March 2023

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