a

GAO

United States General Accounting Office

Report to the Committee on Financial 

Services, House of Representatives

January 2004 MULTIFAMILY 

HOUSING

More Accessible HUD 

Data Could Help 

Efforts to Preserve 

Housing for 

Low-Income Tenants

GAO-04-20
Nationwide, the HUD mortgages on 2,328 properties—21 percent of the 

11,267 subsidized properties with HUD mortgages—are scheduled to mature 

in the next 10 years, but among states this percentage varies significantly: 

from 7 percent in Alabama, to 53 percent in South Dakota. About threequarters of these mortgages are scheduled to mature in the last 3 years of the 

10-year period. A CD-ROM (GAO-04-210SP) that accompanies this report 

provides property-level data for subsidized properties with mortgages 

scheduled to mature. 

Impacts on tenants depend on tenant protections available under program 

statutes and regulations, as well as on property owners’ decisions about 

their properties. While about 134,000, or 57 percent, of the rental units in the 

2,328 properties are protected by rental assistance contracts, tenants in over 

101,000 units without rental assistance are at risk of paying higher rents after 

mortgage maturity because no requirement exists to protect tenants when 

HUD mortgages mature. Absent specific requirements, property owners’ 

decisions on whether to continue serving low-income tenants after their 

HUD mortgages mature depend on many factors, including neighborhood 

incomes, property conditions, and owners’ missions. Of the 32 properties 

with HUD mortgages that matured during the past 10 years, 16 have rental 

assistance contracts that continue to subsidize at least some units, and 10 of 

the remaining 16 that GAO was able to contact offer rents that are affordable 

to tenants with incomes below 50 percent of area median income. 

HUD does not offer incentives to owners to keep properties affordable upon 

mortgage maturity. While many state and local agencies GAO surveyed offer 

incentives to preserve affordable housing, they have not directed them 

specifically at properties where HUD mortgages mature. Most of the 

agencies do not track HUD mortgage maturity dates for subsidized 

properties. In addition, although HUD’s Web site contains detailed 

property-level data, some state and local agencies perceive that the 

information is not readily available.

State and Local Agencies’ Efforts to Identify and Track Properties that May Leave HUD 

Programs 

No

53%

Mortgage

maturity

Percentage

Source: GAO.

Does your agency identify

and track when properties 

are eligible to leave HUD's 

housing programs?

For which circumstances does your 

agency track when properties are eligible 

to leave HUD's housing programs?

Yes

47%

0 20 40 60 80 100

Opt out 80

Prepayment 48

55

Extended

use expiration 53

The Department of Housing and 

Urban Development (HUD) has 

subsidized the development of over 

23,000 properties by offering 

owners favorable long-term 

mortgage financing or rental 

assistance payments in exchange 

for owners’ commitment to house 

low-income tenants. When owners 

pay off mortgages—the mortgages 

“mature”—the subsidized financing 

ends, raising the possibility of rent 

increases. GAO was asked to 

determine the number of HUD 

mortgages that are scheduled to 

mature in the next 10 years, the 

potential impact on tenants, and 

what HUD and others can do to 

keep these properties affordable. 

To help state and local housing 

agencies track properties with 

maturing mortgages, we 

recommend that the Secretary of 

HUD solicit the views of state and 

local housing agencies to 

determine what information on 

HUD-subsidized properties is 

needed and the most effective 

format to convey this information. 

GAO provided a draft of this report 

to HUD for comment. HUD agreed 

with the report’s conclusions and 

recommendations. 

www.gao.gov/cgi-bin/getrpt?GAO-04-20.

To view the full product, including the scope 

and methodology, click on the link above. 

To view the survey results (GAO-04-211SP), 

click on the following link www.gao.gov/cgibin/getrpt?GAO-04-211SP. To place an order 

for a copy of the CD-ROM (GAO-04-210SP) 

with property-level data, click on the following 

link www.gao.gov/cgi-bin/ordtab.pl.

For more information, contact David G. Wood 

at (202) 512-8678 or WoodD@gao.gov. 

Highlights of GAO-04-20, a report to 

the Committee on Financial Services, 

House of Representatives 

January 2004

MULTIFAMILY HOUSING 

More Accessible HUD Data Could Help 

Efforts to Preserve Housing for LowIncome Tenants 
Page i GAO-04-20 Information on HUD Mortgage Maturity

Contents

Letter 1

Results in Brief 3

Background 5

About One-Fifth of HUD’s Mortgages Are Scheduled to Mature 

through 2013 8

Tenant Impacts Depend on Protections and Property Owners’ 

Decisions 15

Tools and Incentives Are Available to Help Keep Properties 

Affordable, but Are Not Specifically Designed to Deal with HUD 

Mortgage Maturity 22

Conclusions 27

Recommendations for Executive Action 27

Agency Comments and Our Evaluation 28

Appendixes

Appendix I: Scope and Methodology 29

Appendix II: Questions from December 10, 2002, Letter from the House 

Committee on Financial Services 33

Appendix III: Comments from the Department of Housing and Urban 

Development 40

Appendix IV: GAO Contacts and Staff Acknowledgments 43

GAO Contacts 43

Staff Acknowledgments 43

Tables Table 1: Subsidized Properties with HUD Mortgages by Program 

Scheduled to Mature through 2013 9

Table 2: Subsidized Properties with HUD Mortgages Scheduled to 

Mature through 2013, by Rental Assistance Program 16

Table 3: Data for 16 Properties with Matured HUD Mortgages and 

without Project-Based Rental Assistance Contracts 21

Figures Figure 1: Universe of Subsidized Properties, 2003 4

Figure 2: HUD Mortgages Scheduled to Mature Annually through 

2013 9

Figure 3: Subsidized Properties with HUD Mortgages Scheduled to 

Mature through 2013, by State 11

Figure 4: Percentage of HUD-Subsidized Mortgages within Each 

State Scheduled to Mature through 2013 12
Contents

Page ii GAO-04-20 Information on HUD Mortgage Maturity

Figure 5: Expiring Rental Assistance Contracts, 2003 through 

2013 13

Figure 6: Properties with Mortgages Scheduled to Mature and/or 

Expiring Long-Term Rental Assistance Contracts, 2003 

through 2013 14

Figure 7: Assisted Units in Properties with Mortgages Scheduled to 

Mature and/or Expiring Long-Term Rental Assistance 

Contracts, 2003 through 2013 15

Figure 8: HUD Mortgages Scheduled to Mature on Properties 

without Rental Assistance 18

Figure 9: State and Local Agencies’ Efforts to Identify and Track 

Properties That May Leave HUD Programs 26

Abbreviations

BMIR below-market interest rate

CDBG Community Development Block Grant

COSCDA Council of State Community Development Agencies

FHA Federal Housing Administration

HUD Department of Housing and Urban Development

NALHFA National Association of Local Housing Finance Agencies

NCDA National Community Development Association

NCSHA National Council of State Housing Agencies

OMHAR Office of Multifamily Housing and Restructuring

RAP Rental Assistance Payment program

REAC Real Estate Assessment Center

REMS Real Estate Management System

TRACS Tenant Rental Assistance Certification System

This is a work of the U.S. government and is not subject to copyright protection in the 

United States. It may be reproduced and distributed in its entirety without further 

permission from GAO. However, because this work may contain copyrighted images or 

other material, permission from the copyright holder may be necessary if you wish to 

reproduce this material separately.
Page 1 GAO-04-20 Information on HUD Mortgage Maturity

United States General Accounting Office

Washington, D.C. 20548

A

January 23, 2004 Letr

The Honorable Michael G. Oxley

Chairman

The Honorable Barney Frank

Ranking Minority Member

Committee on Financial Services

House of Representatives

Since the 1950s, the Department of Housing and Urban Development 

(HUD) has subsidized about 1.7 million rental units in over 23,000 privately 

owned properties that are generally affordable to low-income tenants—

those with incomes 80 percent or less of area median income. HUD 

supported the development of affordable housing by offering property 

owners favorable mortgage financing, long-term rental assistance 

contracts, or both in exchange for owners’ commitment to house lowincome tenants for at least 20 years and, in some cases, up to 40 years. 

However, many of these commitment periods will be completed in the next 

10 years. Properties subsidized under these HUD programs represent a 

significant source of housing that is currently affordable to low-income 

households.

HUD programs that provide mortgage financing in subsidized properties to 

private developers are known by the section of the act that authorized 

them.1

 We consider a property subsidized if HUD provided favorable 

financing (below-market interest rate mortgages), rental assistance, or 

both. They include the following programs:

• Section 202 Elderly and Disabled Housing Direct Loan, which 

provided below-market interest rates on up to 40-year mortgages to 

developers of rental housing for low-income elderly and persons with 

disabilities from 1959 to 1991.2

 Congress changed Section 202 to a grant 

program in 1990;

1

We refer to mortgages made under these programs simply as “HUD mortgages.”

2

The start year for the mortgage financing programs reflects the year of authorization and 

not necessarily the year when the programs became operational.
Page 2 GAO-04-20 Information on HUD Mortgage Maturity

• Section 221(d)(3) Below-Market Interest Rate (BMIR), which provided 

subsidized financing on private 40-year mortgages to developers of 

rental housing from 1961 to 1968;

• Section 236, which provided monthly subsidies to effectively reduce 

interest rates on private 40-year mortgages for rental housing from 1968 

to 1973;

• Sections 221(d)(3) and 221(d)(4), which insured private mortgages to 

developers of rental housing from 1961; and

• Section 231, which insured private mortgages to developers of rental 

housing for the elderly from 1959.

Frequently, properties that benefited from HUD mortgages were coupled 

with long-term rental assistance provided under various programs, such as 

project-based Section 8, Rent Supplement, and Rental Assistance Payment 

(RAP) programs. (The project-based Section 8 program also provides 

rental assistance to owners of properties that were not financed with HUD 

mortgages.) Rental subsidy was also provided through the Section 8 

Moderate Rehabilitation program, which is administered by local housing 

authorities and tied to rehabilitated units. Rental assistance programs 

basically pay property owners a portion of the monthly rents for units 

occupied by assisted low-income tenants. Subsidized financing, rental 

assistance, or a combination of both allows property owners the 

opportunity to earn financial returns while limiting the rents paid by lowincome tenants to a fixed percentage of their household incomes. 

Both mortgages and rental assistance contracts are for set periods of time, 

and subject to specific program provisions, properties become eligible to 

leave HUD programs when mortgages mature or when HUD or owners 

elect not to renew expiring rental assistance contracts. HUD mortgages 

subsidized under Section 202, Section 221(d)(3) BMIR, and Section 236 

restrict how much rent an owner can charge. These restrictions are 

generally effective until the mortgage is paid off. Mortgages financed under 

Section 221(d)(3), Section 221(d)(4), and Section 231 do not have similar 

requirements. In addition, certain properties are eligible to leave HUD 

programs by paying off the mortgage prior to the maturity date. 

As agreed with your offices, this report provides information on (1) the 

numbers and selected characteristics of HUD-subsidized rental properties 

scheduled to reach mortgage maturity over the next 10 years; (2) the 
Page 3 GAO-04-20 Information on HUD Mortgage Maturity

potential impact on tenants when mortgages reach maturity; and (3) the 

tools and incentives that HUD, the states, and localities offer owners to 

keep HUD properties affordable when mortgages mature. The 10 questions 

contained in your December 10, 2002, letter and summary answers are 

presented in appendix II. 

To address these objectives, we analyzed HUD databases, including the 

Real Estate Management System (as of April 2003), to identify the 

characteristics of those properties with mortgages that have already 

reached maturity as well as those scheduled to reach maturity by 

December 31, 2013.3

 We also interviewed HUD and housing industry 

officials and reviewed literature on the preservation of low-income 

housing. Because nationwide data on tools and incentives that can be used 

to preserve affordable housing do not exist, we used a Web-based 

questionnaire to survey 327 state and local housing and community 

development agencies to determine what tools and incentives they use to 

keep HUD-subsidized properties affordable to low-income tenants and 

which of the tools and incentives they believed to be effective. We received 

226 usable responses, for a response rate of 69 percent. We reviewed 

statutes and regulations, interviewed HUD officials, and obtained relevant 

documents to identify tenants’ protections when mortgages mature in 

subsidized properties. Additional details on our scope and methodology, 

including information on our survey design and participants, are discussed 

in appendix I. We performed our work from January through November 

2003 in accordance with generally accepted government auditing 

standards. 

Results in Brief Nationwide, 21 percent (2,328) of the 11,267 subsidized properties with 

HUD mortgages are scheduled to reach mortgage maturity through 2013 

(see fig.1), but among states this percentage varies significantly: from 7 

percent in Alabama, to 53 percent in South Dakota. Nearly all of these 2,328 

properties were financed under the Section 236, Section 221(d)(3) BMIR, 

and Section 221(d)(3) programs, and about three-quarters of these 

mortgages are scheduled to mature in the last 3 years of the 10-year period.

3

To have 10 full years of data, our analysis covered the period from April 15, 2003, through 

December 31, 2013. 
Page 4 GAO-04-20 Information on HUD Mortgage Maturity

Figure 1: Universe of Subsidized Properties, 2003

Impacts on tenants depend in part on tenant protections available under 

program statutes and regulations, as well as on owners’ decisions about 

their properties. No statutory requirement exists to protect tenants from 

increases in rent when HUD mortgages mature, absent the existence of 

rental assistance contracts or other subsidies. Without tenant protection 

requirements, tenants in over 101,000 units under the Section 202, Section 

221(d)(3) BMIR, and Section 236 programs that do not receive rental 

assistance may have to pay higher rents or move to other housing when the 

HUD mortgages on these properties mature and rent restrictions are lifted. 

Further, owners are not required to notify tenants when a property’s 

mortgage is about to mature. In contrast, owners are required to notify 

tenants by up to 1 year in advance of their intent to prepay mortgages or 

opt out of the rental assistance contracts. Property owners’ decisions on 

whether they continue to serve low-income tenants after their HUD 

mortgages mature depend on many factors, such as neighborhood incomes, 

0

5

10

15

20

25

Subsidized

properties with

HUD mortgages

scheduled 

to mature

through 2013

Subsidized

properties

with HUD

mortgages

All

subsidized

properties

Units in

subsidized

properties with

HUD mortgages

scheduled 

to mature

through 2013

Units in

subsidized

properties

with HUD

mortgages

Units in all

subsidized

properties

0.0

0.5

1.0

1.5

2.0

Properties (in thousands) Units (in millions)

23.051

1.715

11.267

2.328

0.914

0.237

Source: GAO analysis of HUD data.

Subsidized properties Units in subsidized properties
Page 5 GAO-04-20 Information on HUD Mortgage Maturity

the condition of their properties, and owners’ missions. During the past 10 

years, HUD-insured mortgages at 32 properties reached mortgage maturity, 

and the majority of these properties are still serving low-income tenants. 

HUD does not offer any tool or incentive to keep properties affordable after 

HUD mortgages mature, although it does offer incentives to keep 

properties affordable under certain other circumstances, such as the 

expiration of rental assistance contracts or prepayment of HUD mortgages. 

According to officials from the four national housing and community 

development organizations we contacted, because few HUD mortgages 

have matured to date, their member state and local agencies have not 

experienced the need to develop programs to deal with mortgage maturity 

specifically.4

 However, they noted that their member agencies could offer 

tools and incentives, such as loans and grants, to keep properties 

affordable after mortgage maturity. Yet, over 50 percent of the state and 

local agencies that responded to our survey reported that they have no 

system in place to identify and track properties that may leave HUD’s 

programs, and about three-quarters of them did not track the maturity 

dates of HUD mortgages.5

This report contains recommendations to the Secretary of HUD intended to 

help state and local housing agencies gain access to useful information on 

HUD-subsidized properties, including mortgage maturity dates.

Background Prior to the early 1970s, the federal government provided affordable 

multifamily housing to low- and moderate-income households by 

subsidizing the production of either privately owned housing or 

government-owned public housing. Under the production programs, the 

subsidy is tied to the unit (project-based), and tenants benefit from reduced 

rents while living in the subsidized unit. These programs include Section 

4

The organizations include the National Council of State Housing Agencies (NCSHA), which 

represents state housing finance agencies; the Council of State Community Development 

Agencies (COSCDA), which represents state housing and community development 

agencies; the National Community Development Association (NCDA), which represents 

local communities that administer federally supported programs such as Community 

Development Block Grant (CDBG) and HOME; and the National Association of Local 

Housing Finance Agencies (NALHFA), which represents local housing finance agencies. 

5

Additional details on the results of our survey are available on the Internet at

www.gao.gov/cgi-bin/getrpt? GAO-04-211SP.
Page 6 GAO-04-20 Information on HUD Mortgage Maturity

202, Section 221(d)(3) BMIR, and Section 236. A portion of the units in 

properties developed under these production programs received rental 

assistance under programs such as Rent Supplement, Rental Assistance 

Payments (RAP), and project-based Section 8 in order to reach lowerincome tenants.6

In the early 1970s, questions were raised about the production programs’ 

effectiveness: many moderate-income tenants benefited from federal 

assistance, while lower-income families did not; federal costs of producing 

housing exceeded the private-sector costs to produce the same services; 

and allegations of waste surfaced.7

 Interest in a more cost-effective 

approach led Congress to explore options for using existing housing to 

shelter low-income tenants. The Housing and Community Development Act 

of 1974, a major overhaul of housing laws, included both approaches—a 

project-based new construction and substantial rehabilitation program and 

a tenant-based rent certificate program for use in existing housing 

(currently named the Housing Choice Voucher program)—all referred to as 

Section 8 housing. Project-based and tenant-based Section 8 assistance is 

targeted to tenants with incomes no greater than 80 percent of area median 

income, and tenants generally pay rent equal to 30 percent of adjusted 

household income. 

Beginning in the late 1980s, owners of some subsidized properties began to 

be eligible to leave HUD programs by prepaying their mortgages or opting 

out of their project-based Section 8 rental assistance contracts. Once these 

owners removed their properties from HUD programs, they were no longer 

obligated to maintain low rents or accept rental assistance payments. In 

response, in 1996, among other things, Congress created a special type of 

voucher, known as an enhanced voucher, to protect tenants from rent 

increases in these properties. Enhanced vouchers differ from regular 

tenant-based housing vouchers in two ways. Enhanced vouchers may 

provide a greater subsidy (that is, be used to rent more expensive units) 

and give tenants a right to remain in their unit after conversion to market 

rent, thus creating an obligation for the owner to accept the voucher. So 

long as the rent remains reasonable, the tenant’s portion of the rent should 

6

HUD has converted most of the original Rent Supplement and RAP contracts to the projectbased Section 8 program.

7

For example, see U.S. Department of Housing and Urban Development, Housing in the 

Seventies: A Report of the National Housing Policy Review (Washington, D.C.: 1974).
Page 7 GAO-04-20 Information on HUD Mortgage Maturity

not increase.8 If the tenant elects to move, the voucher becomes a “regular” 

housing voucher and is subject to the program’s standard rent limits.

Not all property owners repay mortgages as originally scheduled. For 

example, an owner may refinance the mortgage to pay for improvements to 

the property. Other owners may experience financial difficulties and 

default on their mortgages. From January 1993 through December 2002, for 

example, HUD data show that the agency terminated the insurance on 231 

mortgages. About 14 percent were due to mortgages that matured; other 

reasons included owners’ prepayment of the mortgage (37 percent) and 

foreclosure (22 percent).

Funds provided by other federal programs can be used by states and 

localities to subsidize housing for low-income tenants. The CDBG program, 

authorized by the Housing and Community Development Act of 1974, 

distributes grants to local and state governments for community 

development activities. Rehabilitation and other housing activities now 

consistently represent the largest single use of CDBG funds. Other funds 

for housing production have been made available through the HOME 

program, authorized by the Cranston-Gonzalez National Affordable 

Housing Act of 1990, which awards block grants to state and local 

governments primarily for the development of affordable housing. Under 

the Low-Income Housing Tax Credit Program, authorized by the Tax 

Reform Act of 1986, state housing finance agencies provide tax incentives 

to private investors to develop housing affordable to low-income tenants.

In addition to using their HOME and CDBG allocations as well as tax 

credits, some states and localities have established housing trust funds and 

other financial mechanisms, which have helped organizations acquire 

subsidized properties that may leave HUD’s programs. Further, the states 

and localities may use other tools and incentives, such as offering property 

tax relief, to encourage owners to keep serving low-income tenants.

8

There are instances where tenants could encounter problems with the issuance and use of 

enhanced vouchers. These include (1) tenants having to pay a higher security deposit, (2) 

tenants undergoing a rescreening for voucher eligibility under new selection criteria—

thereby disqualifying some tenants who previously received project-based subsidies, and (3) 

owners electing not to rent the unit. 
Page 8 GAO-04-20 Information on HUD Mortgage Maturity

About One-Fifth of 

HUD’s Mortgages Are 

Scheduled to Mature 

through 2013

Nationwide, 21 percent (2,328) of the 11,267 subsidized properties with 

HUD mortgages are scheduled to mature through 2013. The percentage 

varies significantly by state: from 7 percent in Alabama, to 53 percent in 

South Dakota. Nearly all of these 2,328 properties were financed under the 

Section 236, Section 221(d)(3) BMIR, and Section 221(d)(3) programs, and 

about three-quarters of these mortgages are scheduled to mature in the last 

3 years of the 10-year period. The remaining 79 percent of HUD’s 

outstanding mortgages in subsidized properties are scheduled to mature 

after 2013. 

Scheduled Mortgage 

Maturities through 2013 

Vary by Year and Program

Of the 11,267 subsidized properties (containing 914,441 units) with HUD 

mortgages, 21 percent (2,328 properties) have mortgages that are 

scheduled to mature through 2013. The remaining 79 percent of these 

mortgages are scheduled to reach maturity outside of the 10-year period. 

Additionally, the bulk of these mortgages (about 75 percent) are scheduled 

to mature in the latter 3 years of the 10-year period (see fig. 2). This 

concentration in the latter part of the 10-year period is attributable to the 

40-year Section 221(d)(3) BMIR and Section 236 mortgages that HUD 

helped finance in the late 1960s and 1970s, respectively.
Page 9 GAO-04-20 Information on HUD Mortgage Maturity

Figure 2: HUD Mortgages Scheduled to Mature Annually through 2013

As table 1 shows, about 57 percent of the properties with mortgages 

scheduled to mature in the 10-year period were financed under Section 236, 

22 percent under Section 221(d)(3) BMIR, and 19 percent under Section 

221(d)(3). Section 202, Section 221(d)(4), and Section 231 accounted for 

only 3 percent of these properties.

Table 1: Subsidized Properties with HUD Mortgages by Program Scheduled to 

Mature through 2013 

Financing program

Number of 

properties

Percentage 

of properties

Total 

units

Units assisted with 

project-based 

Section 8a

HUD subsidized mortgage

Section 236 1,333 57% 139,769 78,139 

Insured 1,333 57% 139,769 78,139 

Noninsuredb 0 0% 0 0

Section 221(d)(3) BMIR 502 22% 56,573 18,810 

Section 202 41 2% 3,208 871 

0

100

200

300

400

500

600

700

800

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

Number of mortgages

Source: GAO analysis of HUD data.
Page 10 GAO-04-20 Information on HUD Mortgage Maturity

Source: GAO analysis of HUD data.

a

Also included are units that receive RAP or Rent Supplement. Project-based Section 8, however, is 

the dominant form of rental assistance across all financing programs. The Section 8 Moderate 

Rehabilitation program is not included in this table because HUD’s multifamily database does not track 

this program.

b

No mortgage was scheduled to mature in this period.

c

Less than 1 percent.

d

Since properties with noninsured rent supplement do not carry a HUD mortgage, HUD does not track 

mortgage-level data on these properties.

Number of Mortgages 

Scheduled to Mature 

through 2013 Also Varies by 

State

The number of mortgages scheduled to mature through 2013 varies greatly 

by state (see fig. 3). Although the average is 46 per state (including the 

District of Columbia), the number ranges from a high of 273 maturing 

mortgages in California, to 3 in Vermont.

HUD unsubsidized mortgage

Section 221(d)(3) 431 19% 35,263 34,711 

Section 221(d)(4) 14 c 1,239 1,146 

Section 231 7 c 598 410 

Noninsured rent 

supplement

d d d d

Total 2,328 100% 236,650 134,087 

(Continued From Previous Page)

Financing program

Number of 

properties

Percentage 

of properties

Total 

units

Units assisted with 

project-based 

Section 8a
Page 11 GAO-04-20 Information on HUD Mortgage Maturity

Figure 3: Subsidized Properties with HUD Mortgages Scheduled to Mature through 2013, by State

Note: The map shown here includes 2,311 of the 2,328 properties in our analysis—excluded are 

properties in territories of the United States, such as Puerto Rico and Guam.

Further, while 21 percent of HUD mortgages on subsidized properties 

nationwide are scheduled to mature through 2013, individual states have 

significantly different shares of these mortgages. Figure 4 shows the 

proportion of each state’s inventory of properties with HUD mortgages 

scheduled to mature in the 10-year period. The percentage varies 

significantly by state: from 7 percent in Alabama, to 53 percent in South 

Dakota. The CD-ROM that accompanies this report provides detailed 

property-level data that allows the users to perform similar analyses to 

track mortgage maturity by state or other location (congressional district 

or metropolitan area), as well as by other variables such as property 

category or rental assistance program. 

16

5

18 36

273

21

58 

(Conn.)

4 (Del.)

8 (District

of Columbia)

99

77

17

14

39 132

39

43 61

40

9

43 (Md.)

40

(Mass.)

154

47

26

43

15

26

8

7

35 (N.J.)

17

73

46

8

129

26

47

51

17 (R.I.)

35

29

55

118

5

3

53

87

11

40

8

Source: GAO analysis of HUD data.
Page 12 GAO-04-20 Information on HUD Mortgage Maturity

Figure 4: Percentage of HUD-Subsidized Mortgages within Each State Scheduled to Mature through 2013

More HUD Mortgages Are 

Scheduled to Mature after 

2013

Over 8,900 properties, containing almost 680,000 units, have outstanding 

HUD mortgages scheduled to mature after 2013. Most of these mortgages 

were financed under the Section 202, Section 221(d)(4), and Section 236 

programs. About 85 percent of the 680,000 units receive rental assistance. 

Many of these rental assistance contracts will be expiring through 2013. 

Specifically, 8,166 properties with HUD mortgages have rental assistance 

contracts expiring through 2013, affecting about 530,000 assisted units. 

Thus, while mortgages are not scheduled to mature during the period, these 

properties have tenants who could potentially face rent increases.

According to HUD data, in the next 10 years, rental assistance contract 

expiration will affect a total of 18,048 properties—10,382 with HUD 

7.1%

33.3%

18.6% 16.6%

25.1%

12.3%

29% 

(Conn.)

19% 

(Del.)

11.3% (District

of Columbia)

26.5%

26.3%

27.4%

34.1%

11.3% 36.7%

22.4%

21.6% 18.8%

25.3%

11.4%

16.8% 

(Md.)

12.9%

(Mass.)

38.7%

18.9%

25.7%

13.6%

24.2%

13.4%

20%

13.2% (N.H.)

16.6% 

(N.J.)

23.6%

10.2%

8.3%

25.8%

16.7%

19.5%

35.3%

12.2%

23.6%

(R.I.)

18.4%

52.7%

18.6%

27.6%

7.5%

13.6% (Vt.)

24.1%

38%

9.9%

14.7%

20%

Source: GAO analysis of HUD data.
Page 13 GAO-04-20 Information on HUD Mortgage Maturity

mortgages and another 7,666 without HUD mortgages—containing almost 

1.1 million assisted units. Most of these long-term contracts are set to 

expire in the near future—before the end of 2007 (see fig. 5). 

Figure 5: Expiring Rental Assistance Contracts, 2003 through 2013

Note: The data only reflect long-term contract expirations and not expected annual renewals of these 

contracts.

When long-term rental assistance contracts expire, HUD may renew them. 

Currently, HUD generally renews expiring long-term contracts on an annual 

basis but may go as long as 5 years, and in some cases, 20 years. According 

to HUD, during the late 1990s, about 90 percent of the property owners 

renewed their contracts, thereby continuing to provide affordable housing. 

A 2001 publication by AARP reported that if past trends continue, 85 to 90 

percent of contracts will be renewed.9

 The extent to which the trend 

continues will depend on the availability of program funding and housing 

market conditions. 

9

AARP Public Policy Institute, Section 8 Project-Based Rental Assistance: The Potential 

Loss of Affordable Federally Subsidized Housing Stock (Washington, D.C.: February 2001). 

Number of units

Source: GAO analysis of HUD data.

0

50,000

100,000

150,000

200,000

250,000

300,000

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
Page 14 GAO-04-20 Information on HUD Mortgage Maturity

As shown in figure 6, mortgage maturity and rental assistance contract 

expiration will affect a total of 18,553 properties through 2013:

• 505 properties will be affected by maturing mortgages only (480 of these 

are not covered by rental assistance contracts, and the remaining 25 

have rental assistance contracts that expire outside of our 10-year 

window).

• 1,823 properties will be affected by both events (because they have 

rental assistance contracts set to expire and HUD mortgages scheduled 

to mature by 2013).

• 16,225 properties will be affected by expiring rental assistance contracts 

only (8,166 of these have HUD mortgages, but the mortgages are not 

scheduled to mature until after 2013).

Figure 6: Properties with Mortgages Scheduled to Mature and/or Expiring LongTerm Rental Assistance Contracts, 2003 through 2013

Note: The 18,553 properties represent about 81 percent of the 23,051 HUD-subsidized properties.

There are about 1.1 million assisted units in those properties with 

mortgages maturing or rental assistance expiring in the 10-year period. 

These units make up nearly 81 percent of all assisted units in HUD’s 

inventory. As figure 7 shows, about 48,000 units are in properties with 

maturing mortgages only, about 951,400 assisted units are in properties that 

505 Maturing

HUD mortgage

only 505

Maturing HUD 

mortgage and

expiring rental

assistance 1,823

Expiring rental 

assistance only 16,225

Source: GAO analysis of HUD data.

18,553

2,328

(with mortgage

maturity)

18,048

(with expiring

rental 

assistance)

1,823

16,225
Page 15 GAO-04-20 Information on HUD Mortgage Maturity

have expiring rental assistance only, and about 132,600 assisted units (out 

of the approximate 188,600 total units) are in properties with both 

mortgages maturing and rental assistance expiring in the 10-year period. 

Figure 7: Assisted Units in Properties with Mortgages Scheduled to Mature and/or 

Expiring Long-Term Rental Assistance Contracts, 2003 through 2013

Note: 48,045 units with maturing HUD mortgages only are not assisted.

Tenant Impacts 

Depend on Protections 

and Property Owners’ 

Decisions

Over the next 10 years, low-income tenants in over 101,000 units may have 

to pay higher rents or move to more affordable housing when HUDsubsidized mortgages reach maturity. This is because no statutory 

requirement exists to protect tenants from increases in rent when HUD 

mortgages mature and rent restrictions are lifted. Over the next 10 years, 

480 subsidized properties that do not have rental assistance contracts are 

scheduled to reach mortgage maturity. Unassisted tenants in some of these 

properties are at risk of not being able to afford their units if rents are 

raised. The remaining 1,848 subsidized properties with HUD mortgages 

scheduled to mature through 2013 have rental assistance contracts, and the 

protections against rent increases offered under the rental assistance 

programs will apply. However, not all units in these properties are covered 

by the rental assistance contracts, thus limiting the number of tenants 

protected. A number of factors may affect owners’ decisions regarding the 

continued affordability of their properties after mortgages mature, 

including neighborhood incomes, physical condition of the property, and 

48,045 Maturing

HUD mortgage

only 48,045

Maturing HUD 

mortgage and

expiring rental

assistance 132,574

Expiring rental 

assistance

only 951,401

Source: GAO analysis of HUD data.

1,132,020

180,619 

(with mortgage

maturity)

1,083,975

(with expiring

rental 

assistance)

132,574

951,401
Page 16 GAO-04-20 Information on HUD Mortgage Maturity

owners’ missions. While experience with mortgage maturity has been 

limited, 16 of the 32 subsidized properties that reached mortgage maturity 

in the past 10 years are still serving low-income tenants through projectbased Section 8 rental assistance contracts. Additionally, at least 10 of the 

remaining properties that reached mortgage maturity over the past 10 years 

are still serving low-income tenants.

HUD Does Not Offer 

Protection for Unassisted 

Tenants in Properties with 

Maturing Mortgages 

There is no statutory requirement for HUD to offer tenants special 

protections, such as enhanced vouchers, when a HUD mortgage matures. 

However, tenants who receive rental assistance in properties with maturing 

mortgages would be eligible for enhanced vouchers under rental assistance 

programs such as project-based Section 8.

Of the 2,328 subsidized properties with mortgages scheduled to mature 

through 2013, 480—containing 45,011 units—do not have rental assistance 

contracts (see table 2). While the remaining 1,848 properties are subsidized 

with rental assistance, not all units within the properties are covered. 

According to HUD data, about 30 percent of the units in these properties 

are not covered—a total of 57,552 units with tenants who do not receive 

rental assistance. Altogether then, the tenants in a total of 102,563 units are 

not protected under the rental assistance programs. Of these, 101,730 units 

under Section 202, Section 221(d)(3) BMIR, and Section 236 could face 

higher rents after mortgage maturity when the rent restrictions under these 

programs are lifted.

Table 2: Subsidized Properties with HUD Mortgages Scheduled to Mature through 

2013, by Rental Assistance Program

Number of properties

Rental assistance programa

Financing program None

Projectbased 

Section 8

Rent 

Supplement Otherb Total

HUD subsidized mortgage

Section 236 166 1,123 40 4 1,333 

Insured 166 1,123 40 4 1,333 

Noninsuredc 0 0 0 0 0

Section 221(d)(3) BMIR 294 206 2 0 502 

Section 202 20 14 5 2 41 
Page 17 GAO-04-20 Information on HUD Mortgage Maturity

Source: GAO analysis of HUD data.

Note: Percentages may not add due to rounding.

a

The Section 8 Moderate Rehabilitation program is not included in this table because HUD’s 

multifamily database does not track this program.

b

Includes contracts for service coordinators. 

c

No mortgage was scheduled to mature in this period.

d

Since properties with noninsured rent supplement do not carry a HUD mortgage, HUD does not track 

mortgage-level data on these properties.

These unassisted tenants are mostly housed in properties financed under 

Section 221(d)(3) BMIR and Section 236 (see fig. 8). According to a HUD 

study, tenants in properties with mortgages under these programs have an 

average household income somewhat greater than that for tenants who 

receive rental assistance; thus, they may be somewhat more able to afford 

higher rents.10 Properties financed under the Section 221(d)(3) BMIR 

program allow tenants with incomes of up to 95 percent of area median 

income; in comparison, project-based Section 8 does not serve tenants 

earning more than 80 percent of area median income. 

HUD unsubsidized mortgage

Section 221(d)(3) 0 403 28 0 431 

Section 221(d)(4) 0 14 0 0 14 

Section 231 0 6 1 0 7 

Noninsured rent 

supplement

d d d d d

Total 480 1,766 76 6 2,328 

Percent of total 21% 76% 3% <1% 100%

10In a 1998 HUD study, tenants in Section 221(d)(3) BMIR units without rental assistance had 

an average household income that was 83 percent greater than that for tenants in Section 

221(d)(3) BMIR units with rental assistance. Households in Section 236 units without rental 

assistance had an average household income that was 30 percent greater than that for 

tenants in Section 236 units with rental assistance.

(Continued From Previous Page)

Number of properties

Rental assistance programa

Financing program None

Projectbased 

Section 8

Rent 

Supplement Otherb Total
Page 18 GAO-04-20 Information on HUD Mortgage Maturity

Figure 8: HUD Mortgages Scheduled to Mature on Properties without Rental 

Assistance

Note: Total of 480 subsidized properties. 

Tenants in units covered by a rental assistance program—there are 134,087 

units in the properties with HUD mortgages scheduled to mature through 

2013—will continue to benefit from affordable rents, regardless of when 

the mortgage matures, as long as the rental assistance contract is in force. 

If a rental assistance contract expires prior to mortgage maturity and the 

owner opts not to renew it, assisted tenants would be eligible for enhanced 

vouchers. 

Tenants could potentially be affected by the length of time given to them to 

adjust to rent increases as well as by the amount of the increase. Property 

owners are not required to notify tenants when they pay off their mortgage 

at mortgage maturity. In contrast, property owners electing to prepay their 

mortgage or opt out of their Section 8 contract are required to notify 

tenants. For example, when owners opt out of the Section 8 project-based 

program, they are required to notify tenants 1 year in advance of the 

contract expiration. In cases where owners prepay their mortgages under 

the Section 236 or Section 221(d)(3) BMIR programs, tenants must be given 

notice at least 150, but not more than 270, days prior to prepayment. Some 

locations have established even more stringent notification requirements.

5% Other

Section 236

Section 221(d)(3) BMIR

Source: GAO analysis of HUD data.

35%

60%
Page 19 GAO-04-20 Information on HUD Mortgage Maturity

A Number of Factors 

Influence an Owner’s 

Decision to Keep a Property 

Affordable upon Mortgage 

Maturity

Many factors can influence an owner’s decision to keep a property in the 

affordable inventory or convert to market rate rents upon mortgage 

maturity. For a profit-motivated owner, the decision may be influenced by 

the condition of the property and the income levels in the surrounding 

neighborhood. If the surrounding neighborhood has gentrified and if the 

property can be upgraded at a reasonable cost, it may be more profitable to 

turn the building into condominiums or rental units for higher income 

tenants. If repair costs are substantial or if high-income residents are not 

present in the surrounding area, it may be more profitable to leave the 

property in the affordable inventory. Tools and incentives offered by state 

and local agencies may also influence this decision. In addition, because 

most of these owners have had the right to prepay their mortgages and opt 

out of their Section 8 contracts for a number of years, the economic factors 

that drive a decision to convert to market rate are not unique to mortgage 

maturity.

HUD data show that nonprofit organizations own about 38 percent of the 

properties with mortgages scheduled to mature in the next 10 years.11 For a 

nonprofit owner, the decision would likely be motivated by cash flow 

considerations since, in theory, these owners are not primarily motivated 

by economic returns. Since mortgage maturity results in an improvement in 

property cash flow, reaching mortgage maturity by itself would not 

necessarily trigger removal from the affordable inventory. For example, at 

1 of the 16 properties (nonprofit ownership) whose mortgages matured in 

the past 10 years and that do not currently have project-based Section 8 

assistance, the property manager told us that no longer having to pay the 

mortgage left money for repairs needed to keep the units affordable for 

their low-income senior tenants. Additionally, a nonprofit organization 

would be more likely to keep the property affordable to low-income 

tenants because to do otherwise could conflict with its basic mission of 

providing affordable housing.

Another factor is the loss of the interest rate subsidy that occurs when the 

mortgage matures. When interest rate subsidies were first paid to 

properties built in the 1960s and 1970s, they represented substantial 

assistance to property owners. Over time, inflation has substantially 

reduced the value of this subsidy. For example, the average interest rate 

11This is based on information in HUD’s database for 2,237 of the 2,328 properties. For the 

remaining 91 properties (4 percent of the total), HUD’s database did not indicate the 

ownership type.
Page 20 GAO-04-20 Information on HUD Mortgage Maturity

subsidy payment for a Section 236 property with a mortgage maturing in 

the next 10 years is $66 per unit per month. The level of prices has roughly 

quadrupled since 1970, so to have the same purchasing power would 

require about $260 in today’s dollars. Section 8 and similar project-based 

rental assistance now provide the bulk of the assistance to these subsidized 

properties—75 percent of the assistance versus about 25 percent that 

derives from the Section 236 interest-rate subsidy. Furthermore, inflation 

will continue to erode the value of the interest-rate subsidy until mortgage 

maturity, while the rental assistance subsidy is adjusted annually to 

account for increases in operating costs. 

Most Properties with HUD 

Mortgages That Reached 

Maturity Are Offering Rent 

Affordable to Low-Income 

Tenants 

Our review of HUD’s data showed that HUD-insured mortgages at 32 

properties matured between January 1, 1993, and December 31, 2002.12

Sixteen of the 32 properties are still serving low-income tenants through 

project-based Section 8 rental assistance contracts. For 13 of these 16 

properties, the rental assistance covers 100 percent of the units (799 

assisted units), and for the remaining 3 properties, it covers 54 percent of 

the units (174 assisted units). 

Using HUD’s archived data for inactive properties, we attempted to contact 

the property managers of the remaining 16 properties (consisting of 1,997 

units) to determine if the properties currently offer rents affordable to lowincome tenants. We were able to obtain rent information for 10 properties.13

We found that all 10 (none of which have project-based rental assistance 

contracts) are offering rents that are affordable to tenants with incomes 

below 50 percent of area median income.14 According to HUD’s database, 

only 2 of these properties ever had Section 8 project-based contracts, and 

both expired in early 2000. We could not obtain actual tenant incomes since 

property managers told us that they are not required to maintain such 

12In addition, we examined the properties with mortgage insurance that originated from 

1959 through 1962. The mortgage maturity dates for these properties had passed, but we 

found that only 8, or 11 percent of the 76 properties, had reached mortgage maturity. 

13Of the remaining 6 properties, we did not include 2 because they are skilled nursing 

facilities and do not charge traditional rents. We could not obtain information on the others 

because there was insufficient contact information in HUD’s archived database with which 

to locate current owners or managers, or the owners or managers who were not required to 

provide us with information did not respond.

14Rent is generally considered affordable if it does not exceed 30 percent of tenant’s gross 

income.
Page 21 GAO-04-20 Information on HUD Mortgage Maturity

information for properties without federal use restrictions. Using the 

reported average rent for a 2-bedroom unit, we estimated the income 

needed to afford the reported rent (that is, the income needed if no more 

than 30 percent of gross income would be used for rent). We then 

compared this estimated income to the area’s median household income 

for 2003. The rent affordability percentages in table 3 express the estimated 

income needed as a percentage of the area median income. Thus, numbers 

less than 50 indicate that the unit is affordable to households with incomes 

50 percent or less of the area median income. The available data for the 16 

properties is summarized in table 3. Because of the variety of factors that 

can influence owners’ decisions, however, these properties are not 

necessarily indicative of what will happen to other properties as their HUD 

mortgages mature. 

Various property managers we contacted also provided information about 

their efforts to keep their properties affordable. For example, a senior 

complex (nonprofit ownership) continues to generally charge residents 

about 30 percent of their income for rent as they did when they were in 

HUD’s subsidized portfolio. According to the property manager of two of 

the properties (for-profit ownership), he unsuccessfully sought incentives 

from HUD in 2002 to keep the properties in the inventory when the 

mortgages reached maturity, and both properties left HUD’s multifamily 

portfolio. However, both properties are accepting tenant-based vouchers, 

and the rents in both properties are affordable to very low-income tenants.

Table 3: Data for 16 Properties with Matured HUD Mortgages and without Project-Based Rental Assistance Contracts

Property

Prior FHA mortgage 

program

Mortgage 

maturity

date

Total 

units

Number of 

voucher 

holders

Average rent 

for 2-

bedroom 

unit

Rent 

affordability Ownership

1. Section 221(d)(3) BMIR July 1998a 16 3 $500 39% For-profit

2. Section 231 August 2001 73 0 $525b 39% Nonprofit

3. Section 221(d)(3) BMIR June 2002 82 N/A N/A N/A Nonprofit

4. Section 221(d)(3) October 2002 43 0 $185 c 15% Co-op

5. Section 221(d)(4) October 1999a 32 N/A N/A N/A Limited dividendd

6. Section 221(d)(3) BMIR February 2002 103 10 $695 39% For-profit

7. Section 231 July 2000 76 0 e e Nonprofit

8. Section 221(d)(3) BMIR April 2000 114 3 $519 29% For-profit

9. Section 221(d)(3) BMIR May 1998 15 N/A N/A N/A N/A
Page 22 GAO-04-20 Information on HUD Mortgage Maturity

Source: GAO analysis of information from property managers and HUD.

Note: N/A means not available. 

a

Both of these properties also had project-based Section 8 contracts that opted-out in early 2000.

b

Average rents for these properties are for 1-bedroom units.

c

Since these are cooperatives, the rents (monthly fees) only reflect carrying charges, which include 

such expenses as real estate taxes and insurances but not any individual mortgage payments that a 

co-op member may have.

d

For limited dividend owners, the distributions of income are restricted by state law or the Federal 

Housing Administration (FHA) Commissioner.

e

These properties are skilled nursing facilities and do not charge traditional rents.

Tools and Incentives 

Are Available to Help 

Keep Properties 

Affordable, but Are Not 

Specifically Designed 

to Deal with HUD 

Mortgage Maturity

HUD does not offer any tools or incentives to keep properties affordable 

after HUD mortgages mature, although it does offer incentives to maintain 

affordability for properties that also have expiring rental assistance 

contracts. According to officials from the four national housing and 

community development organizations we contacted, because few HUD 

mortgages have matured to date, their member state and local agencies 

have not experienced the need to develop programs to deal with mortgage 

maturity. They noted that their member agencies can offer tools and 

incentives, such as loans and grants, that might be used by owners to keep 

properties affordable after mortgage maturity. However, about threequarters of the state and local agencies that responded to our survey 

reported that they do not track the maturity dates on HUD mortgages, and 

none provided examples of tools or incentives used to keep units 

affordable after mortgage maturity.

The agencies indicated that funds available through HUD’s HOME and 

CDBG programs and the Low-Income Housing Tax Credit program are 

effective means for preserving the affordability of HUD-subsidized housing. 

They also identified financial assistance to nonprofit organizations to aid 

10. Section 221(d)(3) BMIR May 2000 477 38 $550 44% Nonprofit

11. Section 221(d)(3) BMIR April 2002 70 10 $710 40% For-profit

12. Section 221(d)(3) BMIR May 2002 135 80 $565 45% For-profit

13. Section 231 April 2002 557 61 $340b 41% Nonprofit

14. Section 231 January 2001 72 0 e e Nonprofit

15 Section 221(d)(3) BMIR June 2002 80 0 $285c 11% Co-op

16. Section 221(d)(3) BMIR November 2000 52 N/A N/A N/A N/A

(Continued From Previous Page)

Property

Prior FHA mortgage 

program

Mortgage 

maturity

date

Total 

units

Number of 

voucher 

holders

Average rent 

for 2-

bedroom 

unit

Rent 

affordability Ownership
Page 23 GAO-04-20 Information on HUD Mortgage Maturity

them in acquiring HUD-subsidized properties as an effective tool. However, 

over 50 percent of the agencies reported that they have no tracking system 

in place to systematically identify properties that could potentially leave 

HUD’s affordable housing programs and thus might be candidates for 

affordability preservation assistance. 

HUD Does Not Offer 

Incentives to Keep 

Properties Affordable after 

Mortgage Maturity

HUD does not offer property owners any specific incentive to keep 

properties affordable to low-income tenants after maturity of their HUD 

mortgages. During the 1990s, HUD established incentive programs to deal 

with the loss of affordable units because owners were prepaying their 

mortgages and opting out of their Section 8 contracts. These incentives are 

as follows:

• Mark-up-to-Market allows owners to increase the rents for units 

subsidized under the project-based Section 8 rental assistance program 

up to market levels in exchange for keeping the units in the Section 8 

inventory for a minimum of 5 years. 

• Section 236 Decoupling can be activated when the owner prepays a 

Section 236 mortgage and obtains conventional financing. By agreeing 

to keep the property affordable for at least another 5 years beyond the 

original term of the mortgage, owners can keep the interest rate 

reduction payments that they were receiving when they had a HUDfinanced mortgage. 

• Section 202 Prepayments allow owners to prepay their HUD loans and 

obtain other financing, but they must keep the affordability use 

restriction until the maturity date of the original loan.

These incentives do not directly address the termination of the affordability 

requirements resulting from mortgage maturity. Rather, they can extend, 

under certain circumstances, the affordability period beyond the original 

term of the mortgage, as in the Section 236 Decoupling incentive, or allow 

property owners to be better positioned financially to continue providing 

affordable housing, as in the case of Section 202 Prepayments and Mark-upto-Market.
Page 24 GAO-04-20 Information on HUD Mortgage Maturity

State and Local Agencies 

Identified Tools and 

Incentives to Preserve 

Affordable Housing, but Not 

Specifically for Covering 

Mortgage Maturity

The 226 state and local agencies that responded to our survey commented 

on the effectiveness of 18 tools and incentives as a mean to preserve HUD’s 

affordable rental housing. Of the 18, 6 were funded directly by the federal 

government, while 12 were administered by state and local governments 

and were not directly federally funded. However, there was no evidence 

that they have been used to protect properties when HUD mortgages 

mature. This may be because relatively few mortgages have matured to 

date.

State and local tools and incentives include housing trust funds used to 

make loans and grants, financial assistance to nonprofit organizations to 

aid them in acquiring HUD-subsidized properties, and property tax relief to 

owners of HUD-subsidized properties. These state and local agencies 

identified several incentives that they believe are the most effective in 

preserving the affordability of housing for low-income tenants. For 

example, over 60 percent of the 62 state agencies that responded identified 

the 4 percent tax credit and HOME programs as effective means for 

preserving the affordability of HUD-subsidized properties. Of the 76 local 

agencies that responded, over 70 percent identified HOME as effective, and 

over 60 percent identified CDBG as effective.15

Fewer Than Half of State 

and Local Agencies Identify 

and Track Properties That 

May Leave HUD Programs

Over 50 percent of the survey respondents reported that they have no 

system in place to identify and track properties in their states or localities 

that could leave HUD’s subsidized housing programs. Further, about threequarters reported that they do not track the maturity dates of HUD 

mortgages. Awareness of the potential for a HUD mortgage to mature or 

rental assistance to end does not guarantee that state or local agencies will 

take action to preserve the assisted units’ affordability to low-income 

tenants. However, knowing when properties will be eligible to leave HUD’s 

programs could better position state and local agencies to use available 

tools and incentives at mortgage maturity. Several respondents to our 

survey noted that it would be helpful to them if HUD could provide 

information about properties that might leave HUD’s programs. Their 

comments included the following:

15Additional details on the results of our survey are available on the Internet at

www.gao.gov/cgi-bin/getrpt? GAO-04-211SP.
Page 25 GAO-04-20 Information on HUD Mortgage Maturity

• “It would be helpful if HUD would provide local governments periodic 

reports on the status of HUD properties in the locality.” 

• “I believe a lot of CDBG entitlement agencies would be willing to track 

properties that could leave HUD’s affordable housing programs if HUD 

would provide them with a listing of the properties.”16

• “Communication between project-based property owners, HUD, and 

local public housing authorities is not very effective.” 

Of the 102 agencies that indicated they identified and tracked properties, 56 

(55 percent) said that they monitored the scheduled maturity dates of HUD 

mortgages on local properties (see fig. 9). More agencies (82 or 80 percent) 

reported that they identified and tracked properties that might opt out of 

HUD project-based rental assistance contracts. 

16“Entitlement agencies” refers to agencies in entitlement communities that are eligible to 

receive CDBG funding. These communities must meet certain population thresholds and 

must develop their own programs and plans, with priority given to low- and moderateincome persons.
Page 26 GAO-04-20 Information on HUD Mortgage Maturity

Figure 9: State and Local Agencies’ Efforts to Identify and Track Properties That May Leave HUD Programs 

Note: “Extended use expiration” refers to the expiration of the use-agreement period, when owners 

must continue to keep their tax credit properties affordable to low-income tenants after the initial 15-

year affordability period required by the Internal Revenue Code has ended. The length of this extended 

period of affordability is 15 years or more, depending on individual state requirements.

HUD officials noted that they make property-level information available to 

the public on HUD’s multifamily housing Web site.17 This Web site contains 

detailed property-level data on active HUD-insured mortgages and expiring 

rental assistance contracts.18 However, according to our survey, some state 

and local agencies perceive that the information is not readily available. 

One problem may be that these data are in a format that may not be 

sufficiently “user-friendly” for these agencies. The data must be accessed 

using database software, which requires users to be proficient in these 

types of software.

HUD officials agreed that the agency could provide more “user friendly” 

information because the data are not as accessible to state and local 

No

53%

Percentage

Source: GAO.

Does your agency identify and track

when properties are eligible to leave

HUD's housing programs?

For which circumstances does your agency track

when properties are eligible to leave HUD's housing programs?

Yes

47%

0 20 40 60 80

Opt out 80

Prepayment 48

Mortgage

maturity 55

Extended

use expiration 53

17See www.hud.gov/offices/hsg/mfh/mfdata.cfm. 

18Since only insured mortgages are included in this database, direct loans under the Section 

202 program are not included.
Page 27 GAO-04-20 Information on HUD Mortgage Maturity

agencies as they could be. They also noted that these agencies could 

benefit from a “watch list” that identifies properties that may leave HUD 

subsidy programs in their jurisdictions, such as upon mortgage maturity, 

especially if such data were updated annually and readily available online 

so that agencies would have the information needed to prioritize and fund 

efforts to preserve low-income housing in their jurisdictions.

Conclusions HUD’s rental housing programs have developed subsidized properties for 

low- and moderate-income tenants that carry rent affordability 

requirements for a fixed period. As a result, HUD has focused on keeping 

these properties affordable for at least that period, and its tools and 

incentives have mainly addressed mortgage prepayments and rental 

assistance contract expiration, not mortgage maturity. While a share of the 

properties with HUD mortgages are scheduled to reach maturity over the 

next 10 years, it is uncertain how many of these properties will attempt to 

convert to market-rate housing and raise rents, making the units in these 

properties unaffordable for many tenants. While state and local agencies 

might be able to play an important role in maintaining the affordability of 

properties eligible to leave HUD programs because of mortgage maturity or 

other reasons, these agencies need to know in advance which properties 

are eligible to leave HUD’s programs, and when, in order to use tools and 

incentives that can help keep the properties affordable. Even though HUD 

makes property-level data available to the public on its Web site, state and 

local agency responses to our survey suggest that HUD data may not be as 

readily accessible, and therefore as useful, as they could be. HUD officials 

responsible for maintaining the data on the subsidized properties agreed.

Recommendations for 

Executive Action 

To help state and local housing agencies track HUD-subsidized properties 

that may leave HUD’s programs upon mortgage maturity or for other 

reasons, we recommend that the Secretary of HUD solicit the views of state 

and local agencies to determine (1) the specific information concerning 

HUD-subsidized properties that would be most useful to their affordability 

preservation efforts and (2) the most effective format for making this 

information available, and then use the results to modify the current means 

of conveying the data on these properties to make the data more widely 

available and useful. 
Page 28 GAO-04-20 Information on HUD Mortgage Maturity

Agency Comments and 

Our Evaluation

We provided a draft of this report to HUD for its review and comment. In a 

letter from the Assistant Secretary for Housing (see app. III), HUD agreed 

with the report’s findings, conclusions, and recommendations. HUD also 

noted that while it believes that a wide array of public and private entities 

concerned about preserving the affordable housing stock are using the 

databases currently available through HUD’s Web site, it could improve the 

format and modify the current means of conveying the data on these 

properties to make the data more readily available. In its letter, HUD also 

provided technical comments, which we incorporated as appropriate.

As agreed with your offices, unless you publicly announce the contents of 

this report earlier, we plan no further distribution until 30 days from the 

report date. At that time, we will send copies of this report to interested 

Members of Congress and congressional committees. We also will send 

copies to the Secretary of the Department of Housing and Urban 

Development and the Director of the Office of Management and Budget and 

make copies available to others upon request. The report will be available 

at no charge on the GAO Web site at http://www.gao.gov. A CD-ROM (GAO04-210SP), which includes property-level data for subsidized properties 

with mortgages scheduled to mature or expiring rental assistance 

contracts, will accompany this report and can be ordered at

www.gao.gov/cgi-bin/ordtab.pl. The results of our survey of state and local 

agencies (GAO-04-211SP) will also be available on the GAO Web site at

www.gao.gov/cgi-bin/getrpt?GAO-04-211SP. 

Please contact me at (202) 512-8678, or Andy Finkel at (202) 512-6765, if 

you or your staff have any questions concerning this report. Key 

contributors to this report are listed in appendix IV.

David G. Wood

Director, Financial Markets and

Community Investment
Page 29 GAO-04-20 Information on HUD Mortgage Maturity

Appendix I

Scope and Methodology AAppenednxidexiIs

To develop a state-by-state inventory of multifamily properties with HUD 

mortgages scheduled to mature and to identify the properties’ 

characteristics, we analyzed and combined information from several HUD 

databases. We used data from HUD’s Real Estate Management System 

(REMS), which contains information on active properties in Datamart, as 

well as from the Tenant Rental Assistance Certification System (TRACS), 

which contains information on Section 8 contracts. We also incorporated 

data from HUD’s Real Estate Assessment Center (REAC) and—through the 

Office of Multifamily Housing and Restructuring (OMHAR)—data from the 

Annual Financial Statements submitted to HUD by property owners. To 

ensure the HUD data were reliable, we performed internal checks to 

determine (1) the extent to which the data were complete and accurate, (2) 

the reasonableness of the values contained in the data fields, and (3) 

whether any data limitations existed in the data we relied upon to do our 

work. Based on our reliability assessment, we concluded that the data were 

reliable for purposes of this report. The data obtained from HUD are as of 

April 15, 2003. To have 10 full years of data, our analysis covered the period 

from April 15, 2003, through December 31, 2013.

For the properties with existing HUD mortgages, we identified those that 

also have project-based rental assistance contracts. We then separately 

identified properties that do not have HUD mortgages, but have projectbased rental assistance contracts that are also due to expire through 2013. 

To obtain occupancy data relating to the individual properties, we used the 

system containing the financial statements that are prepared and submitted 

annually to HUD by property owners. For each property, we obtained the 

following information:

• property identification number,

• property name,

• address,

• city,

• state,

• zip code,

• metropolitan area,
Appendix I

Scope and Methodology

Page 30 GAO-04-20 Information on HUD Mortgage Maturity

• congressional district,

• total number of units,

• total number of assisted units,

• name of HUD financing program,

• property category,

• mortgage maturity date,

• name of rental assistance program, 

• rental assistance expiration date,

• number of rental assistance contracts,

• rental assistance contract status,

• type of client (tenant) served,

• type of property ownership,

• economic occupancy rate,

• subsidy utilization rate, and

• property inspection score (REAC score).

We also used HUD’s database to identify properties whose mortgages have 

matured over the last 10 years. To determine how many properties are still 

serving low-income tenants, we first identified those that are covered by 

rental assistance contracts. For 14 of the 16 properties without current 

rental assistance contracts, we obtained contact information from HUD’s 

archived database (the database did not have sufficient complete 

information on the other 2). We then contacted these properties via 

telephone to determine if the management was still serving low-income 

tenants. 

We reviewed HUD regulations to determine the potential impact on tenants 

when HUD mortgages mature. In particular, we reviewed the eligibility of 
Appendix I

Scope and Methodology

Page 31 GAO-04-20 Information on HUD Mortgage Maturity

tenants to receive enhanced vouchers and other protections against 

increases in rents when properties leave HUD’s programs. We discussed 

these regulations with appropriate HUD officials and also requested that 

HUD identify protections available to tenants under the various housing 

programs.

To identify the incentives that HUD, the states, and localities could offer 

owners under existing laws and regulations, we interviewed HUD, state, 

and local officials and reviewed available literature. Because there are no 

nationwide data available on the utilization of tools and incentives at the 

state and local level and no single agency is responsible for administrating 

the various incentives for any state, we surveyed state and local housing 

and community development agencies via the Internet. We identified the 

survey participants through lists provided by four national housing industry 

organizations. Specifically, we surveyed members of the National Council 

of State Housing Agencies (NCSHA), which represents state housing 

finance agencies; the Council of State Community Development Agencies 

(COSCDA), which represents state housing and community development 

agencies; the National Community Development Association (NCDA), 

which represents local communities that administer federally supported 

programs such as CDBG and HOME; and the National Association of Local 

Housing Finance Agencies (NALHFA), which represents local housing 

finance agencies. The survey covered (1) their experiences in preserving 

affordable housing, (2) the incentives used and their effectiveness, and (3) 

the extent to which they identify and track properties that could leave 

HUD’s programs. 

In developing the survey, we met with officials at the four national 

organizations to gain a better understanding of the issues and modified our 

questions based on their comments. We then pretested with several state 

and local agencies throughout the country, such as the Department of 

Community Development in Amarillo, Texas; the Department of 

Neighborhood Development in Boston, Massachusetts; and the Ohio 

Housing Finance Agency. During these pretests, we observed the officials 

as they filled out the survey over the Internet. After completing the pretest 

survey, we interviewed the respondents to ensure that (1) the questions 

were clear and unambiguous, (2) the terms we used were precise, (3) the 

survey did not place an undue burden on the agency officials completing it, 

and (4) the survey was independent and unbiased. On the basis of the 

feedback from the pretests, we modified the questions as appropriate. 

Information about accessing the survey was provided to a contact person 

at each of 327 state and local housing and community development 
Appendix I

Scope and Methodology

Page 32 GAO-04-20 Information on HUD Mortgage Maturity

agencies in 50 states, the District of Columbia, and Puerto Rico. The survey 

was activated on May 12, 2003; it was available until September 5, 2003. To 

ensure security and data integrity, we provided each agency with a 

password to access and complete the survey. 

We originally included 373 potential respondents in our survey, but 

eliminated 46 for various reasons, including those agencies having no 

authority over affordable housing and those with no HUD properties in 

their jurisdictions. As a result, 327 potential respondents remained—46 

from NCSHA, 65 from COSCDA, 130 from NCDA, and 86 from NALHFA. 

From the 327, we obtained 226 usable responses—38 from NCSHA, 47 from 

COSCDA, 83 from NCDA, and 58 from NALHFA—for an overall response 

rate of 69 percent. 
Page 33 GAO-04-20 Information on HUD Mortgage Maturity

Appendix II

Questions from December 10, 2002, Letter 

from the House Committee on Financial 

Services ApendxiI

We would like the following questions answered in this General 

Accounting Office report:

1. This letter includes a list of the privately owned, publicly assisted 

multifamily housing mortgage programs. 

• 221(d)(3)

• Market rate with rent supplement

• Below Market Rate Interest Rates (BMIR) with rent supplement or 

section 8

• 236:

• Insured and Noninsured

• Rental Assistance Projects (RAP)

• Rent Supplement

• Section 8

• 221(d)(4) with all or partial Section 8

• 202s with rent supplement or Section 8

• 231s with rent supplement

• Section 8 moderate rehabilitation (not funded through HUD, maybe 

PHA)

• Noninsured rent supplement projects (12 projects only in NY and 

Minnesota) 

Please update the list if there are other programs that should have 

been included and include any omitted programs in your answers to 

the other questions requested in this report. 

We did not identify any programs to add to the list. The report encompasses 

all of these programs with the following exceptions: (1) HUD does not 

collect mortgage information on noninsured rent supplement properties 
Appendix II

Questions from December 10, 2002, Letter 

from the House Committee on Financial 

Services

Page 34 GAO-04-20 Information on HUD Mortgage Maturity

because the properties do not use HUD financing. HUD does have data on 

the rent supplement contracts alone, which we included in the CD-ROM; 

(2) Section 8 Moderate Rehabilitation properties are excluded because 

HUD does not track these properties in its multifamily database and 

maintains no aggregate data on properties in the program. 

2. What is the potential impact on the renewal of those Section 8 

contracts in projects where FHA mortgages mature, the principal is 

paid off entirely, and the affordability restrictions attendant to the 

mortgages expire?

The impact of a matured HUD mortgage, by itself, on an owner’s decision to 

renew a Section 8 contract is uncertain because there are a number of 

other factors that can affect the decision. For a profit-motivated owner, the 

decision to renew would likely be influenced by the condition of the 

property and the income levels in the surrounding neighborhood. If the 

surrounding neighborhood has gentrified and if the property can be 

upgraded at a reasonable cost, it may be more profitable to turn the 

building into condominiums or rental units for higher income tenants. If 

repair costs are substantial or if high-income residents are not living in the 

surrounding area, it may be more profitable to keep the property in the 

affordable inventory by renewing the Section 8 contract. Tools and 

incentives offered by HUD, state, and local agencies may also influence 

these decisions. 

For a nonprofit owner, the decision would likely be motivated largely by 

cash flow considerations since, in theory, these owners are not primarily 

motivated by economic returns. HUD data show that nonprofit 

organizations own about 36 percent of the properties with mortgages 

scheduled to mature in the next 10 years. Since mortgage maturity results 

in an improvement in property cash flow, reaching mortgage maturity 

would not by itself necessarily trigger removal from the affordable 

inventory. Additionally, a nonprofit organization would be more likely to 

keep the property affordable to low-income tenants because to do 

otherwise would conflict with its basic mission of providing affordable 

housing. Thus, nonprofit owners would likely continue to renew Section 8 

contracts.

3. We request an inventory, in chart form, of all the units that will reach 

maturity in the next 10 years. The inventory should include:

• Property name, city, and state
Appendix II

Questions from December 10, 2002, Letter 

from the House Committee on Financial 

Services

Page 35 GAO-04-20 Information on HUD Mortgage Maturity

• Property MSA (metropolitan statistical area)

• Month and year of mortgage maturity

• Type of multifamily program for each development

• Number of units for each development

• Expiration date of Section 8 contract for each development (if any)

• Contract status of Section 8 contract for each development (if any)

• Number of section 8 units for each development (if any)

• Total number of units covered under each of the programs and their 

location by state

• Total number of units for all developments

• Total number of units that are occupied

• Total number of section 8 units

• Type of families housed, i.e. families, elderly, etc.

• Whether the unit is owned by a profit or nonprofit organization

All the data elements cited above are included in the CD-ROM that 

accompanies this report. Data on property inspection scores, subsidy 

utilization rates, street addresses, and the congressional district in which 

the property is located are also included.

4. What will happen to the units and hence the families occupying the 

units once the mortgages expire? What rights, if any, do these 

tenants have regarding their rent costs subsequent to the expiration 

of the mortgage term and pay off of the entire mortgage principal? 

Provided there is no other subsidy, owners of properties whose HUDsubsidized mortgages have matured are generally no longer required to 

charge reduced rents to tenants that meet HUD’s income limits, and the 

tenants do not have any rights or protections. Depending on the owner’s 

decision, tenants could face higher rents and, if they were unable to afford 
Appendix II

Questions from December 10, 2002, Letter 

from the House Committee on Financial 

Services

Page 36 GAO-04-20 Information on HUD Mortgage Maturity

them, would have to move. However, if the units are covered by a rental 

assistance contract, the tenants would not be affected by the mortgage 

maturity. As long as the rental assistance is in force, these tenants would 

continue to benefit from subsidized rents. 

5. Under existing laws and regulations, are there Federal government 

incentives that HUD could offer the owners of the multifamily 

housing developments to keep properties affordable upon maturity of 

the FHA mortgage and pay off the principal? Under existing law and 

regulations, what types of incentives are available for each state and 

the District of Columbia that could be made available to the owners of 

the multifamily housing developments? Have they been successful?

HUD does not offer property owners any specific incentive to keep 

properties affordable to low-income tenants after maturity of their HUD 

mortgage. During the 1990s, HUD established incentive programs to deal 

with the loss of affordable units because owners were prepaying their 

mortgages and opting out of their Section 8 contracts. These incentives 

include the Mark-up-to-Market program, Section 236 Decoupling, and 

Section 202 Prepayments. These incentives do not directly address the 

termination of the affordability requirements resulting from mortgage 

maturity. Rather, they can extend, under certain circumstances, the 

affordability period beyond the original term of the mortgage, as in the 

Section 236 Decoupling incentive, or allow property owners to be better 

positioned financially to continue providing affordable housing, as in the 

case of Section 202 Prepayments and Mark-up-to-Market. 

State and local agencies identified tools and incentives to preserve 

affordable housing, but not specifically for addressing maturing HUD 

mortgages. The 226 state and local agencies that responded to our survey 

commented on the effectiveness of 18 tools and incentives as a mean to 

preserve HUD’s affordable rental housing. Of the 18, 6 were funded directly 

by the federal government, while 12 were administered by state and local 

governments and were not directly federally funded. However, there was 

no evidence that they have been used to protect properties when HUD 

mortgages mature. This may be because relatively few mortgages have 

matured to date.

6. What are the possible effects if the Section 8 contract maturity date is 

shorter than the FHA mortgage maturity date?
Appendix II

Questions from December 10, 2002, Letter 

from the House Committee on Financial 

Services

Page 37 GAO-04-20 Information on HUD Mortgage Maturity

The effects depend largely on the owner’s decision about the future use of 

the property. As noted in our response to question 2, an owner’s decision to 

renew a Section 8 contract can be influenced by a number of factors, such 

as neighborhood incomes, the condition of the property, and owner’s 

mission. Consideration of these factors would likely also apply to 

properties where the Section 8 contract expiration date is earlier than the 

scheduled maturity date on the HUD mortgage. 

When mortgage maturity is imminent, an owner may also consider what the 

impact of losing the interest rate subsidy as well as paying off the HUD 

mortgage will be on the property’s cash flow. When interest rate subsidies 

were first paid to properties built in the 1960s and 1970s, they represented 

substantial assistance to property owners. Over time, inflation has 

substantially reduced the value of this subsidy relative to the rental 

assistance subsidy, which is adjusted annually to account for increases in 

operating costs. Project-based rental assistance now provides the bulk of 

the assistance to these subsidized properties. Therefore, it is possible that, 

under certain circumstances, such as where a surrounding neighborhood 

has gentrified and the property can be upgraded at a reasonable cost, a forprofit owner may decide to forgo the remaining interest rate subsidy 

payments and prepay the mortgage at the time the project-based contract 

expires. However, because most owners have had the right to prepay 

mortgages and opt out of their Section 8 contracts for a number of years, 

the economic factors that drive the decision to convert to market rate when 

mortgages mature are no different than in the past. 

From the tenant’s perspective, if the owner elects to enter into a new 

Section 8 contract, the tenants in assisted units will be protected for the 

duration of the contract. If the owner elects not to enter into a new Section 

8 contract with or without prepaying the mortgage, the tenants in the units 

that previously received rental assistance would receive enhanced 

vouchers. Enhanced vouchers give the tenants the right to stay in their 

units and generally protect them from rent increases in the properties after 

the Section 8 contract expires, regardless of the maturity date of the HUD 

mortgage.

7. For those mortgages that have reached mortgage maturity or are soon 

to do so, what actions, if any, have been taken by state, local, or other 

bodies to ensure that affordability has been maintained after the FHA 

mortgages are extinguished or are about to be paid off in their 

entirety? Have the efforts been successful?
Appendix II

Questions from December 10, 2002, Letter 

from the House Committee on Financial 

Services

Page 38 GAO-04-20 Information on HUD Mortgage Maturity

According to officials from the four national housing and community 

development organizations we contacted, because relatively few HUD 

mortgages have matured to date, their member state and local agencies 

have not experienced the need to deal with mortgage maturity. They noted 

that their member agencies can offer tools and incentives, such as loans 

and grants, to owners to keep properties affordable after mortgage 

maturity. However, about three-quarters of the state and local agencies that 

responded to our survey reported that they do not track the maturity dates 

on HUD mortgages, and none provided examples of tools or incentives 

used specifically to keep units affordable after mortgage maturity.

8. Please provide data on how many units/developments have already 

reached mortgage maturity, the current status of those 

units/developments, and whether those units/developments are still 

serving low-income families.

Our review of HUD’s data showed that HUD-insured mortgages at 32 

properties matured between January 1, 1993, and December 31, 2002. 

Sixteen of the 32 properties are still serving low-income tenants through 

project-based Section 8 rental assistance contracts. For 13 of these 16 

properties, the rental assistance covers 100 percent of the units (799 

assisted units), and for the remaining 3 properties, it covers 54 percent of 

the units (174 assisted units). 

Using HUD’s archived data for inactive properties, we attempted to contact 

the property managers of the remaining 16 properties (consisting of 1,997 

units) to determine if the properties currently serve low-income tenants. 

We were able to obtain rent information for 10 properties.1

 We found that 

all 10 (none of which have project-based rental assistance contracts) are 

still primarily serving low-income tenants and that the current rents are 

affordable to tenants with incomes below 50 percent of area median 

income. According to HUD’s database, only 2 of these properties ever had 

Section 8 project-based contracts, and both expired in early 2000. We could 

not obtain actual tenant incomes since property managers told us that they 

are not required to maintain such information for properties without 

federal use restrictions. 

1

Of the remaining 6 properties, we did not include 2 because they are skilled nursing 

facilities and do not charge traditional rents. We could not obtain information on the others 

because there was insufficient contact information in HUD’s archived database with which 

to locate current owners or managers, or the owners or managers who were not required to 

provide us with information did not respond.
Appendix II

Questions from December 10, 2002, Letter 

from the House Committee on Financial 

Services

Page 39 GAO-04-20 Information on HUD Mortgage Maturity

9. The provision of enhanced vouchers does not currently apply to 

Section 236 or Section 221 (d) (3) mortgages that mature. What is the 

impact on the current tenant population upon mortgage maturity?

There is no statutory requirement for HUD to offer tenants special 

protections, such as enhanced vouchers, when a HUD mortgage matures. 

However, tenants who receive rental assistance in properties with maturing 

Section 236 or Section 221(d)(3) mortgages would be eligible for enhanced 

vouchers under rental assistance programs, such as project-based Section 

8. Depending on property owners’ decisions, tenants in these properties 

who do not receive rental assistance could face higher, possibly 

unaffordable, rents.

10. What recommendations does GAO propose to address or alleviate the 

potential loss of affordable housing arising from FHA mortgage 

maturations?

Awareness of the potential for a HUD mortgage to mature, while not a 

guarantee of action, could help state or local agencies’ ability to use 

available tools or incentives for preserving properties’ affordability to lowincome tenants. Therefore, to help state and local housing agencies track 

HUD-subsidized properties that may leave HUD’s programs upon mortgage 

maturity or for other reasons, we are recommending that the Secretary of 

HUD solicit the views of state and local agencies to determine (1) the 

specific information concerning HUD-subsidized properties that would be 

most useful to their affordability preservation efforts and (2) the most 

effective format for making this information available, and then use the 

results to modify the current means of conveying the data on these 

properties to make the data more readily available.
Page 40 GAO-04-20 Information on HUD Mortgage Maturity

Appendix III

Comments from the Department of Housing 

and Urban Development ApendxiI
Appendix III

Comments from the Department of Housing 

and Urban Development

Page 41 GAO-04-20 Information on HUD Mortgage Maturity
Appendix III

Comments from the Department of Housing 

and Urban Development

Page 42 GAO-04-20 Information on HUD Mortgage Maturity
Page 43 GAO-04-20 Information on HUD Mortgage Maturity

Appendix IV

GAO Contacts and Staff Acknowledgments ApendxiIV

GAO Contacts Andy Finkel (202) 512-6765

Rich LaMore (617) 788-0571

Staff 

Acknowledgments

In addition to those named above, Mark Egger, Daniel Garcia-Diaz, Nadine 

Garrick, Curtis Groves, Austin Kelly, John McDonough, John McGrail, 

Luann Moy, Barbara Roesmann, William Sparling, Thomas Taydus, and 

James Vitarello made key contributions to this report. 

(250123)
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