Expectations are that the Section 515 rural rental housing properties and the Section 514/516 farm labor housing properties participating in this program, will be revitalized and the affordable use will be extended without displacing residents because of increased rents. The MPR program assures that existing rental complexes will continue to deliver decent, safe and sanitary affordable rental housing for the lesser of the remaining term of the loan or 20 years from the date of the MPR transaction closing. Owners receive no direct benefit, no fees and in fact must navigate complicated income tax issues that result from any mortgage restructuring.
The Fiscal Year 2011 budget proposes elimination of the MPR and thus any organized preservation program at RD. Funding for the preservation program should be restored. NAA also believes that Congress should enact permanent preservation legislation.
House Letter
Senate Letter