What are the benefits to a multifamily owner of converting to assistance under PETRA?
HUD recognizes that its multifamily owner partners’ continuing participation in its existing rental assistance programs is voluntary and that renewal under MAHRAA is an option for most owners. Since conversion under PETRA is voluntary, HUD has established contract terms under PETRA that are intended to appeal to the many private owners of HUD-assisted housing who share in HUD’s mission and long-term preservation goals. For example, owners converting under PETRA may enter into a contract providing an initial contract term of 20 years, with a 20-year extension provision upon expiration of the initial 20-year term. This duration of contract life is not currently available to multifamily owners. Initial contract rents can be set at market up to and including 110 percent of the FMR, and the Secretary may approve a market rent that exceeds 110 percent of the FMR. Above-market “exception rents” are permitted on properties assisted with the new Project-Based Contracts authorized in PETRA, capp
