Participating Administrative Entity (PAE) Responsibilities

In the next two years, many of the contracts on Idaho’s HUD-subsidized multifamily housing developments will expire and the property owners’ contract obligation with HUD will terminate. Landlords who elect to renew their contracts can participate in rent and debt restructuring under HUD’s Mark-to-Market Program. This will ensure that the subsidized rents remain in place but don’t exceed the rent of comparable properties in the same market area.

Landlords who choose to "opt out" of those subsidies—rather than renew them—have the option to adjust rents on the apartments, thereby removing those affordable housing units.

IHFA was recently designated as the Participating Administrative Entity for Mark-to-Market in Idaho. The goal of the program is to ensure HUD contract rents are consistent with market rents for similar projects. By restructuring the mortgages, IHFA is able to reduce the long-term, project-based Section 8 Rental Assistance costs and reduce the cost of insurance claims paid by the Federal Housing Administration.

The restructuring program has both social and economic implications for IHFA. Part of IHFA’s mission is to provide and preserve affordable housing for Idahoans. By acting as the PAE for the state, IHFA can ensure that these affordable housing units aren’t lost.

Developers who have FHA-insured mortgages—and are receiving rental subsidy assistance under HUD’s Section 8 program—are eligible to undergo the restructure.