lis 217 stemming the tide - LISC

In addition, there are special rules for projectsthat participated in the federal preservationprograms or the Portfolio ReengineeringDemonstration Program, a predecessor of Markto-Market.Special rules also apply to propertieswith Section 8 Moderate Rehabilitation contracts:renewal rents are the lesser of existingrents adjusted by OCAF, the Section 8 FairMarket Rent or the market comparable rent.Enhanced VouchersWhere owners choose not to renew a Section 8contract, but to "opt out" instead, MAHRA providesthat eligible tenants will receive EnhancedVouchers at the prevailing market rent. Vouchereligibility in opt-outs is limited to low-incometenants with incomes at or below 80 percent ofarea median; otherwise, the same basic rulesapply as in the prepayment program. EnhancedVouchers are now available to eligible tenantsin any property where an opt-out occurred afterFY1994.Tenant NoticeOwners must give tenants notice at least oneyear prior to the opt-out date. If proper notice isnot given, the owner may not evict the tenant orincrease the tenant's rent share until the oneyearnotice requirement is met. (HUD will generallyprovide an interim contract extension tocover the notice period.)Pending Legislation: Federal Matching GrantsIn recent years, preservation advocates havefocused their legislative efforts on a campaignto secure federal matching grants for state andlocal preservation programs. While not yet successful,these efforts are gaining momentumeach year. In 1999, a preservation matchinggrant bill passed both the House and Senatewith 50 co-sponsors. In 2001, the bill was reintroducedas (HR 425 and S 2733) along withother bills proposing a broader affordable housingtrust fund with potential preservation aswell as production uses. Advocates anticipate arenewed effort to secure passage of these initiativesin 2002. 9 chapter one: Subsidized Housing Preservation: An Historical Perspective 7