The Assignment:

FPG’s longtime role as Financial Advisor to the Department of Housing and Urban Development’s (HUD) Mark-to-Market (M2M) program shows our wealth of institutional knowledge, ability to lead a large team of partners, and financial skills. Our staff members have worked on Mark-to-Market since its start in 1998, soon after its authorization in the 1997 Multifamily Assisted Housing Reform and Affordability Act (MAHRA).

M2M maximizes taxpayer dollars on privately owned properties in the Section 8 program, with mortgages held by HUD or insured by the Federal Housing Administration (FHA). The program targets properties with government-supported rent levels above what the private sector would charge in the same market. M2M restructures existing debt on these properties to a level supported by rents reduced to the market rent. Holistic analyses of properties ensure repairs, both short and long term, are identified, funded, and completed. An expense cushion is built in to ensure long-term financial viability as well.

Our contributions:

  • Developed underwriting models
  • Created automated tools to streamline application process
  • Managed up to 65 members on Financial Advisor team
  • Drafted original and extension legislation for program
  • Trained staff, owners, and other entities on all M2M steps
  • Built and maintained the “Resource Desk” online portal
  • Assisted the management team with support
  • Supplied extra capacity for transaction processing
  • Supported HUD on the most complicated transactions
  • Spurred the Green Initiative

Photo: Poppleton Place Apartments, Baltimore, MD. Credit: The Hampstead Companies