Rockport Mortgage Corporation (RMC) has built its reputation on superior service in the completion of financial transactions for its customers and partners. To further enhance the value RMC creates for its clients through financing services, RMC provides strategic consulting services to develop, implement and close all aspects of HUD-assisted preservation transactions. Through RMC's Consulting Services, clients have an edge in navigating the complexities involved in recapitalizing older HUD assisted and insured Multifamily properties. These services have proven to provide significant financial and strategic benefits to property owners.

The vast majority of HUD's privately-owned affordable housing stock was built between the late 1960s and early 1980s under the following FHA insurance and mortgage subsidy programs:

• Section 221(d)(3) Below-Market Interest Rate Program
• Section 221(d)(3) Market Rate Program
• Section 236 Interest Reduction Payments Program
• Section 221(d)(4) Market Rate Program
• Section 202 Elderly Housing Direct Loan Program

HUD frequently provided owners of these properties with additional project-based assistance to ensure the affordability of these apartments to very-low and low- income households in the form of:

• Rent Supplement Assistance
• New Construction/Substantial Rehabilitation Section 8 Rental Assistance
• Loan Management Set-Aside Section 8 Assistance

Given the age of these properties and expiring subsidies, recapitalization is needed to address capital improvement needs of the property and financial concerns of their owners.

Properties developed under HUD-assisted and insured programs were very effective in meeting the affordable housing needs of millions of households, however most now need to be recapitalized due to both the declining physical condition of the properties and serious financial concerns of owners. These properties are anywhere from 25-35 years old, resulting in the need for a capital infusion to complete some level of rehabilitation. In the case of for-profit owners, most tax benefits derived from the properties have been exhausted and cash distribution limits that were established at mortgage inception are insufficient to meet the needs of today's investors. Fortunately, HUD recognizes the need to preserve this dwindling affordable housing stock and continues to develop programs to address the needs of properties and their owners.