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Section 8 and M2M

The Section 8 Renewal Policy Guide Book provides information on contract renewals, including those that initiate participation in the Mark-to-Market (M2M) Program. For more information on Section 8 visit the web page and to access the M2M contract renewal forms listed below, visit HUDClips:

  • Basic Renewal Contract for One-Year Term (Form HUD-9636). The Basic Renewal Contract is used for all short-term renewals, excluding those that receive short-term renewals using the Recap Interim Renewal Contracts listed below. The Basic Renewal Contract is also used for Recap Lites that have completed their rent restructurings. It should NOT be used for Mark-Up-to-Market (Option One) renewals.
  • Full Mark-to-Market Renewal Contract (Form HUD-9642). This contract should be used by owners who previously entered one of the two Interim Contracts discussed above and who have reached agreement with HUD on the terms of the debt restructuring.
  • Watch List Renewal Contract (Form HUD-9643). An Recap contract for owners who: (i) previously entered into one of the two Interim Contracts; (ii) chose not to restructure or Recap discontinued the restructuring process; and (iii) agree that they may need to change their mind and opt back into the M2M program. In this scenario, the Owner retains eligibility under the Mark-to-Market Program but they must make an election to opt back into the program at a later date. Through the execution of an Interim Full Renewal/Re-Entry contract, HUD and the Owner agree to simultaneously terminate the Watch List Contract and agree to proceed in good faith to work out the terms of and complete a Debt Restructuring.
  • Interim Full Mark-to-Market Contract (Form HUD-9640). An interim/short-term Recap renewal contract that should be used when owners are referred to Recap for debt restructurings . Owners can make their own initial determinations that they probably will agree to restructure the debt (Option Three) or the PM/CA believe their rents are above market and can refer the project for debt restructuring. For owners initially were referred to Recap for debt restructuring but who decide before the process is completed not to follow through with the restructure.- or for projects that Recap has discontinued the restructuring process. The Renewal/Re-Entry contract continues the property's eligibility for debt restructuring in the event the owner decides to return to Recap to complete the process.
  • Interim-Lite Renewal Contract (Form HUD-9641). An interim short-term Recap renewal contract. This contract is used when owners are referred to Recap for rent restructurings. Owners can make their own initial determination that they probably will agree to restructure rents but not the debt. (Option Three) or the PM/CA believe their rents are above market and can refer the project for rent restructuring.
  • Mod Rehab Contract (Form HUD-9644). All Full closings of previously Mod Rehab projects should use this contract, unless it is an Out Year (OY ) deal. This HAP contract is significantly different from the regular M2M full renewal HAPs, in that instead of modifying certain provisions of the original (Mod Rehab) HAP contract, these projects will have an entirely new HAP contract executed at closing. For OY deals, the original HAP will remain in place and an OY Recapture Agreement will be signed. At maturity of the OY contract, this contract will then be used.
Resources Relative to Mark-to-Market