Tom Harkin: “under last year's VA/HUD appropriations act, the Congress created a program called ``mark-to-market'' to reduce…”

“under last year's VA/HUD appropriations act, the Congress created a program called ``mark-to-market'' to reduce overmarket section 8 contract rents on FHA-insured multifamily properties. Section 514(g)(2)(A) of the mark-to-market program would authorize the Secretary of Housing and Urban Development (HUD) to allow for exception rents over the 120 percent of fair market rent (FMR) limit for up to five percent of the restructured units in a year. There is some confusion, however, if this five percent waiver is a national limit or a geographical limit. I am concerned that certain areas, such as the upper Midwest, the need for waivers may exceed five percent because of the proportion of elderly facilities and the way FMRs compare to the relative costs of operating those facilities in certain areas as well as the random circumstances that may occur in certain geographical areas in a given year. I would like to ask the Chairmen of the HUD authorizing and appropriations subcommittees for their clarification on the congressional intent of this issue.”