**Sample**

## Mark-to-Market Form 10.7(b)

**Notification to Owner of Failure of Appeal; Transmittal of Form for
Re-election under Housing Notice H 99-36**

From: OAHP Preservation Office

To: Owner

Transmission: Overnight Hard Copy

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

*(date)*

Project Name:
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

FHA Number:
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

Section 8 HAP Contract Number:
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

REMS ID Number:
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

Dear Owner:

Approved Market Rents

1BR \$ \_\_\_\_\_\_\_\_\_

2BR \$ \_\_\_\_\_\_\_\_\_

3BR \$ \_\_\_\_\_\_\_\_\_

4BR \$\_\_\_\_\_\_\_\_\_

\[Insert other unit sizes if necessary\]

We have reviewed your appeal of the determination that the subject
property cannot be approved as a Lite transaction and/or your appeal of
the market rents. **Our review confirms that the property does not meet
the criteria for approval as a Lite and/or we have concluded that the
market rents listed above are appropriate for processing.**

We strongly recommend that you change your election under H 99-36 (or
prior notices) to request processing of this transaction as a Full Debt
Restructuring. We have attached an additional copy of the election form
for your convenience. You should make the election within **five
business days of receipt of this letter**.

If you choose to elect Full Debt Restructuring, you should execute a
copy of the enclosed election form and send it to the following HUD
office with a copy to the PAE:

> HUD Project Manager
>
> Address
>
> Address

The HUD Project Manager will extend your current contract for a total of
12 months so long as you are cooperating with the restructuring process.

**If you do not choose to change your election within five business
days**, the PAE will provide you with a revised Section 8 HAP Contract
that reflects the OAHP-approved market rents. **Your current Section 8
HAP Contract will expire at the end of the first full month after you
receive that Notice.**

If you execute the new Section 8 HAP Contract, HUD may elect to renew
the contract at the market rents determined but reserves the right to
issue tenant-based assistance (vouchers) to the tenants in the property
in the face of immediate questions of viability. If the contract is
renewed, you will be placed on a special watch list going forward. As a
result, special inspections or monthly submissions of financial
statements may be required. In any case, HUD's execution of the contract
is conditioned upon the availability of funds.

**If you do not execute the Section 8 HAP Contract, HUD will be unable
to honor your requisitions and will have no choice but to assume that
you intend to opt out of the Program. In order to begin procedures to
provide Section 8 tenant-based assistance to the tenants of this
property, you will be given a short-term renewal at market rents in
order to comply with the one-year Notice requirements to tenants or to
provide sufficient time to process tenant-based vouchers. If your
decision is to opt out, we strongly urge you to contact your HUD Project
Manager immediately.**

If you have any questions about this transaction, please do not hesitate
to contact \[insert OAHP contact name\] at \[insert phone\].

Sincerely,

OAHP Preservation Office

cc: HUD Project Manager

Section 8 Contract Administrator

PAE

Enclosed: H 99-36 Election Form