OPG 5.5 Susidy Layering Certification - Non-Standard M2M Transac

Mark-to-Market
Form 5.5
Subsidy Layering Certification - Non-Standard M2M Transaction
Project Name: _________________________________________
The Restructuring Plan for the above referenced project was completed in accordance with the
program standards contained in the M2M Operating Procedures Guide (OPG). Because the Plan
involves significant additional sources of government assistance not contained in a standard M2M
transaction such as tax credits and housing bonds, the Restructuring Plan warrants additional
review to determine that the various financial assistance elements of the Plan meets HUD’s
subsidy layering requirements. The Restructuring Plan includes the following elements of financial
assistance:
A new first mortgage provided by: Specify source: ___________________
Reuse of Interest Reduction Payments available from the existing S236 mortgage.
A Partial Payment of Claim
An extension of the existing project based Section 8 assistance.
Low Income Housing Tax Credits
Historic Tax Credits
HOME funds
Other Assistance: Specify nature and amount: ______________________________
The multiple sources of financial assistance contained in the restructuring plan (the Sources) have
been carefully reviewed against the project’s hard and soft costs (the Uses). No overlaps of
Sources and Uses were found. The public housing finance agency awarding the tax credits is
required to perform a subsidy layering review, as is the local or state government agency providing
HOME funds. In completing its subsidy layering analysis the (PAE) has consulted with these
government agencies and has determined that the levels of financial assistance and the specific
project uses meet the provider’s published requirements and has also determined that their
conclusions on subsidy layering issues are consistent with the conclusions certified below.
Pursuant to the subsidy layering review requirements contained in 24CFR401.481, the (PAE) has
performed a subsidy layering review and has determined that the government assistance involved
in the non standard debt restructuring referenced above is not more than is necessary to permit the
project to house tenants with an income mix comparable to the income mix of the project before the
Restructuring Plan is implemented. The (PAE), therefore, certifies that the Restructuring Plan
developed for the project meets HUD’s subsidy layering requirements.

Name of Official:

_________________________

Title: _________________

Signature of Official:

_________________________

Date: _________________

January 2005