**Texas Tenants' Union**

**4228 Main Street, Dallas, TX 75226**

**Phone: 214-823-3846, Phone & Fax: 214-823-2999**

[**ttu@ont.com**](mailto:ttu@ont.com)

May 15, 2006

Regulations Division

Office of General Counsel

Department of Housing & Urban Development

451 Seventh Street, S.W., Room 10276

Washington, DC 20410-0500

Re: Docket No. FR-4751-P-01; HUD 2006-0003, Implementation of
Mark-to-Market Program Revisions

To Whom It May Concern:

I am writing on behalf of the Texas Tenants' Union, a non-profit
organization that provides information and organizing assistance to
renters in Texas, including more than 100 properties involved in HUD's
Mark-to-Market program. The comments below relate to the tenant
endorsement procedure for priority purchaser status and the forgiveness
of debt for priority purchasers.

401.480 (e)\
(1) Required Meeting is good.  The regulations should clarify that the
prospective purchaser must have a representative present at the meeting
to disclose who they are (including names of directors), the name and
location of other properties they own, their experience (if any) with
HUD assisted housing, their plan to improve the property, any changes in
on-site manager or management company, any changes in utility billing,
and to answer any tenant questions.  This information should be in
writing and made available to any tenants who were unable to attend the
meeting. Any claims or promises made to tenants to obtain their
endorsement should become a binding provision in the restructuring
commitment and be made enforceable by tenants.  The meeting should be
held at a time and location convenient to the majority of the tenants,
and should be conducted by the PAE or other neutral third party.\
\
(1) (ii)  Endorsement Vote Meeting - Instead of a second tenant meeting
to endorse, the regulations should require endorsement to be in writing
by more than 50% of the occupied tenant households.  There should be at
least a three week period between the informational meeting and the
endorsement.\
\
(2) Notice must be given to tenants, tenant organization, and posted. 
The regulations should specify that posting must be in 3 conspicuous
places on the property, and provided in appropriate languages.  The
regulations should also require notice to be given to parties listed in
401.501 (local government, PHA, OTAG, other appropriate neighborhood
representatives, and other affected parties).  Tenant organization
should include any organization based on the property as well as any
non-profit tenant organizing group working with the residents. 

Timing of notice \-- If the informational meeting is not part of the 2nd
PAE-convened tenant comment meeting, there is no guidance on how much
notice must be given.  The regulations should require notice no less
than 3 days and no more than 10 days prior to the meeting.\
\
(3) (4) (5) and (6)  Proxy voting should not be allowed.

In addition, Appendix C of the Operating Procedures Guide includes
requirements for independence. These should be included in the
regulations.

Lastly, the incentives for transfer to priority purchasers should not be
limited to a three year period. Currently, Appendix C of the Operating
Procedures Guide and the standard Restructuring Commitment form allow
the forgiveness of second and third debt to qualified purchasers only if
the property transfers within three years of restructuring. We are
working with tenants at a property that completed M2M in 2001 where new
ownership is desirable, and this incentive would be useful.

Thank you for your consideration of these comments.

Sincerely,

Sandy Rollins

Executive Director