Consulting Services
HUD PROGRAMS & POLICIES UPDATES - Comparison Chart (MUM, Transfer, or Budget)
 download (.pdf)
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| Mark Up to Market, Transfer, or Budget: Comparison of Program Features | |||
| MUM | MUM-T | MUB | |
| Program Name | Mark Up to Market | Mark Up to Market Transfer | Mark Up to Budget |
| Owner Eligibility | Only For-Profit | FP or NP to NP Transfer | Only Non-Profit |
| Property Eligibility (requires an expiring Section 8 contract1) | Owner able to go market
Local rents 100%+ of FMR2 |
Unaffiliated seller/buyer
-- |
--
-- |
| Minimum REAC score | 60 | -- | 30 |
| PCNA plus HUD approval of rehab? | No | No | Yes |
| Section 8 term/appropriation | 5 years / 1 year | 5 or 20 years / 1 year | 5 or 20 years / 1 year |
| Post mark-up rent cap | As-is market | As-improved market | As-improved market |
| Rent cap as percent of FMR | 150% | 150% | 150% |
| Reduce rents by debt service savings? | Yes | Yes | Yes |
| Future rent increases | OCAF | OCAF | OCAF with budget appeal |
| Opportunity to submit updated rent study during 5-year term? | No | Yes | Yes |
| Cash flow dividend cap | Oil ceiling + increase in cash flow from MUM rents | 6% of equity or unlimited | 6% of equity |
| Use Agreement term (or extension of current use) | -- | + 20 years | + 20 years |
| Prepayment lock on current HUD loan? | 5 years [§236 or 221(d)(3) only] | -- | Already exists |
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1For all programs, expiring Section 8 contracts cannot be Mod Rehab or SRO.
2We understand that HUD is considering lowering the MUM ceiling to 100% of FMR, but to the best of our knowledge, no such proposal has been published. |
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