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Budget Based Rent Adjustments (BBRA) for Mark-to-Market (M2M) Properties

 

Budget Based Rent Adjustments (BBRA) for Mark-to-Market (M2M) Properties

 

 
Overview

 

BBRAs are available for existing M2M properties that lack sufficient project income to operate and maintain the property on a sustainable basis for the long-term. BBRAs are to increase housing assistance payment contract (HAP) rents to levels that can support property expenses, including debt service coverage and deposits into a reserve for replacements. Properties will be prioritized based on its condition and the relationship between the property’s contract rents and the Fair Market Rent, due to limited funding.
 
Highlights

 

 
Apply Now

 

Initial Submission are now being accepted in the Multifamily Preservation Desk for properties that meet Group A criteria and notice eligibility requirements only. Requests will be reviewed on a first-come-first-served basis, but applications received within 28 calendar days after the publication of the notice (before 11:59 PM EST on March 28, 2024,) shall be deemed received simultaneously. Please submit any questions to bbra@hud.gov.

Apply for a BBRA

 

 

 

Group A Properties (must meet one (1) of the following criteria):

  • REAC score < 30
  • 2 consecutive REAC scores < 60
  • Operating Cost Coverage Ratio < 1.0
  • Owner Contributions of over $3,000 in the last year or a 3-year record of Owner Contributions over $1,500 per year
  • Property is with the Multifamily Property Disposition Center
  • Vacancy Rate >= 25% for 24-months