Outreach and Technical Assistance Grants (OTAG)

Contracts are expiring on thousands of privately-owned multifamily properties assisted under the project-based Section 8 program. Congress was concerned that many of these Section 8 properties were receiving rents at amounts higher than those of similar properties in their local markets and therefore established Mark-to-Market program under the Multifamily Assisted Housing Reform and Affordability Act of 1997 (MAHRA). Under this program, HUD reduces Section 8 rents of above-market HUD-insured properties to market levels and restructure existing debt to levels supportable by the new rent levels. The Mark-to-Market program has now been extended until September 30, 2006.

Under Section 514f of MAHRA, Congress authorized HUD to provide $10 million in annual grant funding to organizations to provide technical assistance to tenants and tenant groups in Mark-to-Market properties. In 1998, the National Housing Trust was awarded Outreach and Technical Assistance Grants (OTAG) to work with residents of Mark-to-Market properties in seven states: Alabama, Michigan, Minnesota, Mississippi, Tennessee, West Virginia and Wisconsin. In addition in 2001, the Trust became the OTAG grantee for 8 more states: Arizona, Idaho, Louisiana, Montana, North Dakota, South Carolina, South Dakota, and Wyoming. Through our grants, the Trust provided information to residents and other Mark-to-Market stakeholders, including state and local government officials, and community groups, about the Mark-to-Market and Section 8 programs. A sample tenant booklet can be found below.

Available Information:
	Mark-to-Market Information for Residents
	Helpful Housing Links for Residents

History of Federally-Assisted Multifamily Housing
Source:	National Housing Trust
Summary:	Between 1965 and 1975, over 600,000 units of affordable housing were built under HUD's Section 221(d)(3) and Section 236 programs. Along with the Section 202 program created in 1959, this was the first time the private sector was invited to participate in producing low- and moderate-income housing, previously the sole domain of public housing authorities. The private sector programs were structured very differently from public housing. Under these programs, FHA-insured 40-year loans were provided, accompanied by either a below-market interest rate (Section 236), interest rate subsidies (Section 221(d)(3) Below Market Interest Rate-BMIR) or rent subsidies similar to Section 8 for the residents (Section 221(d)(3) Market Rate). The Section 202 program for the elderly was strictly limited to nonprofit owners. The other programs were not, however, and with a minimal amount of cash required from developers to participate, they quickly became popular with for-profit owners.
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