First Housing has been selected by the Department of Housing and Urban Development as one of only three private companies nationally to act as participating administrative entities (PAEs) for the Section 8 Mark-to-Market program. First Housing was chosen based on its vast experience in underwriting and financing multifamily housing.

Under this program, owners of properties with expiring Section 8 contracts and above market rents, can request a restructuring of their debt along with a markdown of their contract rents to lower levels. As a PAE, First Housing will play a central role by recommending a restructuring plan on each property, based on market rents and any needed physical improvements, that will preserve the affordable housing while allowing HUD to save money by lowering subsidy levels.

The tasks included in this process include eligibility screening, tenant meetings, data collection, site visits, underwriting, negotiating restructures with owners, responding to appeals, managing the closing process and certain post-closing asset management activities.

The newly created Mark-to-Market department of First Housing has been busy since August 1 working on the initial assignment of forty projects in three states: Mississippi, Arkansas, and Oklahoma. The staff is eagerly anticipating their first closings and looking forward to future assignments.