HUD Failure
This story is not specifically about St. Louis, it is about a failure of HUD that would effect all communities.
I have represented a HUD insured Section 8 project in another part of the country. Their 20 year Section 8 contract is due to expire. HUD requires an analysis called Mark to Market which requires analyzing the rent structure, usually adjusting the rents down and lowering the mortgage. It requires a rent comparability study which is like an appraisal.
HUD used poor comparables in their analysis resulting in the rents being lowered for the project. They used old comperables from when the market was low. I was hired to help appeal to HUD. We lost. As a result the project owners are opting out of affordable housing and turning their project into conventional housing at higher rents.
So HUD’s error which they refused to acknowledge has caused the loss of 62 affordable housing units. This is ironic considering their mission is to preserve it. Something tells me that my situation is not unique. Written by Paul Dribin
The St Louis Contrarian 