CARH’S BROADCAST E-MAIL – Regulatory Update

March 1, 2024

1)  Existing Policy on Non-Rent Fees for Subsidized Multifamily Housing Programs Posted to Drafting Table

On February 29, HUD’s Office of Multifamily Housing Programs issued the following information:

This guidance provides a summary of existing policy regarding the fees that owners of HUD-subsidized multifamily properties are permitted and not permitted to charge tenants. None of the guidance set forth in the chart is new or reflects a change in federal law, regulation, or policy. In addition to outlining the Office of Multifamily Housing Programs’ existing policy regarding different types of fees and charges for its subsidized programs, the chart includes citations to applicable regulations and HUD-issued guidance that will provide owners and tenants with more detailed information. This guidance does not address applicable state or local laws, which may permit or prohibit non-rent fees.

The Office of Multifamily Housing Programs is seeking feedback from stakeholders regarding its existing policy on non-rent fees for HUD-subsidized multifamily housing programs. We would appreciate comments on the existing guidance related to each type of fee or charge contained in the chart. In addition, we are interested in input from owners and tenants on whether there are fees that are not addressed in our existing guidance.

Please provide your comments on the feedback worksheet and email the worksheet to The deadline for responses is March 29, 2024.

2)  HUD Publishes Budget Based Rent Adjustments for Mark-to-Market (M2M) Properties Notice

On February 28, HUD published Housing Notice 2024-05, Budget-Based Rent Adjustments for Mark-to-Market Properties. Along with the publication of the Notice, the Office of Multifamily Housing Programs sent out the following information and notice of training:

Today, HUD’s Office of Multifamily Housing Programs published Housing Notice 2024-05 which implements HUD’s authority to make budget-based rent adjustments (BBRA) for Section 8 project-based rental assistance housing assistance payment contracts at properties subject to a M2M Use Agreement. This notice sets forth the eligibility requirements and HUD’s policies and procedures for reviewing BBRA applications.

Due to limited funding, HUD is prioritizing BBRAs where the need is determined to be the greatest. Accordingly, the notice identifies the 1st Priority Group invited to apply for a BBRA. Owners with a M2M property/properties that meet notice eligibility requirements and one (1) of the criteria defined as “Group A Properties” are invited to apply now. At this time, only properties that meet the requirements of the 1st Priority Group are eligible to apply.

If you have a M2M property that meets HUD’s definition of the 1st Priority Group, please submit the Initial Submission through the form available on HUD’s Post M2M website. Requests will be reviewed on a first-come-first served basis, but applications received within the next 28 days (before 11:59 PM EST on March 28, 2024,) will be deemed received simultaneously. HUD will invite owners that qualify to submit a Final Submission, pending funding availability. The Final Submission will contain all the necessary documentation to confirm eligibility and allows HUD to conduct a complete evaluation of the project to assess the needed BBRA.

BBRAs will increase contract rents; however, assisted residents will continue to pay only 30 percent of their income for rent and utilities. The monthly PBRA subsidy payment to owners covers the difference between the tenant contribution and the contract rent.

HUD is planning a training on the notice on March 12th at 1PM EST. Use this registration link to enroll. If you have any questions about the notice, please email

We hope you take advantage of this opportunity, and we look forward to working with you to preserve and improve the M2M affordable housing stock.

For other news and information affecting the affordable rural housing industry, please visit the Newsroom on CARH’s website,