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HAROLD ROGERS

5TH DISTRICT, KENTUCKY


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RE: Funding Opportunity # FR5415N35 CFDA: 14,263 Rural Innovation Fund
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Dear Mr. Duncan, I would appreciate your finding support through the HUD Rural Innovation Fund for the Mountain Comprehensive Care Center Health Care for the Homeless Program. With funding support, MCCC plans to construct a 14-unit apartment building to serve veterans and severely mentally ill residents to meet housing and healthcare needs in Martin County, Kentucky.

I understand the fiscal constraints we are facing across the nation right now and this application is an ideal way to meet both housing and health care needs for homeless individuals in our povertystricken region who also have intense health care needs. The facility in Martin County will coincide with MCCCs Health Care for the Homeless Project, serving neighboring Floyd and Magoffin Counties. These counties are medically underserved and severely impoverished. Thank you in advance reviewing the applicatiorrand realirigthe direct impact that finding support will make in an area where viable options are very limited in our rural region. Sincerely,

Harold Rogers Member of Congress


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The Honorable Harold Rogers U.S. 1-louse of Representatives Washington, DC 20515-1705 Dear Representative Rogers:

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Thank you for your letter of March 2, 2011, supporting an application from the Mountain Comprehensive Care Center for funding under the FY20 10 Rural Innovation Fund program competition.
Approximately $25.7 million in program funds are available under the FY20 10 Rural Innovation Fund competition. The purpose of the Rural Fund program is to provide support for highly targeted and innovative grants dedicated to addressing the problems of concentrated rural housing distress and community poverty. Applications were submitted pursuant to the Notice of Funding Availability (NOFA) that was published on the HUD website on December 22, 2010. The Department will consider each eligible application that was received by the submission deadline of February 23, 2011. All applications will he rated and ranked in accordance with the fair and uniform selection procedures described in the NOFA. Thank you for your interest in the Departments programs. Please let me know if I can he of lurther assistance.

Sincerely,

Peter A. Kovar Assistant Secretary for Congressional and Intergovernmental Relations

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The Honorable Harold Roers U.S. i-louse of Representatives Washington, DC 2051 5-1 705 Dear Representative Rogers:

an application from the Mountain Thank you for your letter of March 2, 201 1, supporting FY20 10 Rural Innovation Fund program Comprehensive Care Center for funding under the
competition. are available under the FY2OI 0 Rural Approximately $25.7 niillion in program funds the Rural Fund program is to provide support for innovation Fund competition. The purpose of addressing the problems of concentrated rural highly targeted and innovative grants dedicated to that demonstrate a great likelihood of housing distress and community poverty for projects and community poverty in the project area. substantial impact in addressing the housing needs of Funding Availability (NOFA) that was Applications were submitted pursuant to the Notice 2010. published on the I-IUD website on December 22, that was received by the submission The Department viIl consider each eligible application will he rated and ranked in accordance with the fair deadline of February 23, 2011. All applications the NOFA. and unifonii selection procedures described in ms. Please let me know if! can be of Thank you for your interest in the Departments progra further assistance.

Sincerely,

Peter A. Kovar Assistant Secretary for Congressional and Intergovernmental Relations


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COMMIUEE ON APPROPRIATIONS
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NIl MAIN STRFFT HAZARD, KY 41701 IEEE) 439-5794 110 RESOURCE COURT SUITE A PRESIC)NSSUIIG, KY 41559 (506)8550)544

Washington,
March 2, 20 II Robert Duncan Office of Community Planning and Development

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Department of Housing and Urban Development th 451 7 Street S.W. Washington, D.C. 20410 Dear Mr. Duncan,
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I am writing to encourage your funding support through the HUD Rural Innovation Fund for KCEOC Community Action Partnership Incorporated application requesting $2,000,000 to construct a LEED certified multi-use apartmentlcommercial space building for affordable housing for low to moderate income residents, as well as economic development opportunities in Corbin, Kentucky. I understand the fiscal constraints we are facing across the nation right now and this application is an ideal way to meet both housing and economic development needs in Whitley County, Kentucky, a Distressed County as designated by the Appalachian Regional Commission. KCEOC Community Action Partnership is investing $94, 300 in matching funds to secure the project. Housing and business development is critical in our rural region. With funding support from HUD-RIF, this quality piece of properly can be developed into a facility that will benefit both residents and economic development in Whitley County. Thank you in advance reviewing the application and realizing the direct impact that funding support will make in an area where viable options are very limited in our rural region.

Sincerely,

Harold Rogers Membcr of Congress

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The Honorable I larold Rogers U.S. House of Representatives Washington. DC 205 15- [705 Dear Representative Rogers:

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Thank you for your letter of March 2. 20 [1. supporting an application from KCEOC Community Action Partnership Incorporated for funding under the FY20 10 Rural Innovation Fund program competition. Approximately 525.7 million in program funds are available under ihe FY20 10 Rural Innovation Fund competition. The purpose of the Rural Fund program is to provide support for highly targeted and innovative grants dedicated to addressing the problems of concentrated rural housing distress and community poverty. Applications were submitted pursuant to the Notice of Funding Availability (NOFA) that was published on the HUD website on December 22, 2010. The Department will consider each eligible application that was received by the submission deadline of February 23, 2011. All applications will be rated and ranked in accordance with the fair and uniform selection procedures described in the NOFA. Thank you for your interest in the Departments programs. Please let me know if I can be of further assistance. Sincerely,

Peter A. Kovar Assistant Secretary for Congressional and Intergovernmental Relations

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ihe Honorable Harold Rogers U.S. [louse of Representatives Washington. DC 20515-1 705 Dear Representative Rogers: Thank you for your letter of March 2,2011, supporting an application from KCEOC Community Action Partnership Incorporated for funding under the FY20 10 Rural Innovation Fund program
competition.

Approximately 525.7 million in program funds are available under the FY20 10 Rural Innovation Fund competition. The purpose of the Rural Fund program is to provide support for highly targeted and innovative grants dedicated to addressing the problems of concentrated rural housing distress and community poverty for projects that demonstrate a great likelihood of substantial impact in addressing the housing needs and community poverty in the project area. Applications were submitted pursuant to the Notice of Funding Availability (NOFA) that was published on the HUD website on December 22. 2010. The Department will consider each eligible application that was received by the submission deadline of February 23, 2011. All applications vi Ii be rated and ranked in accordance with the fair and uniform selection procedures desci-ibed in the NOFA.
Thank you for your interest in the Departments programs. further assistance. Please let

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Sincerely,

Peter A. Kovar Assistant Secretary For Congressional and Intergovernmental Relations

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Anne L. Weismann, Esq. Citizens for Responsibility and Ethics in Washington 1400 Eye Street, NW, Suite 450 Washington, DC 20005
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Freedom of Information Act Request FOJA Control Nos.: 1 1-FI-HQ-01286 and FI-485686

Dear Ms. Weismann: This letter is in response to your Freedom of Information Act (FOIA) request dated March 7, 2011. In your letter, you asked for any correspondence between Representative Harold Rogers, Kentucky Republican, any member of his staff or any staff member of the United States House of Representatives Committee on Appropriations (Appropriations Committee) acting on behalf of Representative Rogers, with any employee of the Department of Housing and Urban Developments Office of Congressional and Intergovernmental Relations from January 1, 2000, to the present. When responding to a FOIA request, HUD searches for responsive documents existing up to the date that the request is received in the Departments FOIA Branch. Your request was received on March 14,2011. Your request is granted in part at no cost to you. Enclosed are copies of correspondence between Representative Rogers, the Appropriations Committee, and HUD from January 1, 2000, to the present. I am withholding the name of a constituent under FOTA Exemption 6, as release of such information would constitute an unwarranted invasion of personal privacy. The interest of the general public in reviewing these portions of government documents does not outweigh the individuals right to privacy. I am the official responsible for this determination based on information provided by the Departments Office of Fair Housing and Equal Opportunity. You may appeal this determination within 30 days from the date of this letter. If you should decide to appeal, your appeal should include copies of your original request and this response, as well as a discussion of the reasons supporting the appeal. The envelope should be plainly marked to indicate that it contains a FOIA appeal and should be addressed to:

www.hud.gov

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U.S. Department of Housing and Urban Development Freedom of Information Act Appeal Senior Counsel, Office of General Counsel Portals Building, Suite 200 1250 Maryland Avenue, SW Washington, DC 20024 Telephone: (202) 708-2568 For your information, your FOIA request, including your identity and any information made available, is releasable to the public under subsequent FOIA requests. In responding to these requests, the Department does not release personal information, such as home address, telephone number, or social security number, all of which are protected from disclosure under FOIA Exemption 6. Thank you for your interest in the Departments programs and policies.

Dolores W. Cole Director for FOLk and Executive Correspondence Office of the Executive Secretariat Enclosures

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DATE: 4/13/11 TO: Honorable Donovan, Secretary FROM: Victoria V. Decatur-Brodeur Hcmse Appropriations Committee Surveys and Investigations Staff Washington, D.C. 20515

Department of House and Urban Development


FAX NUMBER: 202-708-2476

TELEPHONE:
TOTAL NUMBER OF PAGES INCLUDING COVER SHEET: 5

FA.X (202) 225-2112

Please find attached Cominttee on Appropriations Professional Iievelopment Program for distribution. Thank you.

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April 13, 2011


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The Honorable Shaun L. Donovan Secretary Department of House and Urban Development th 7 Street, SW Suite 10000 Washington, D.C. 20410 Dear Honorable Donovan:
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I am pleased to announce the formation of a formal professional development program in the House Appropriations Committee, The committee has had numeroLs detailees and interns to support its annual budget process. However this program is geared individuals within the Federal establishment that may find time spent inside the Committees analytic and investigative arm of particular interest.

The Surveys and Investigations Division ofthe House Appropriations Committee operates as a non partisan unit that investigates and conducts studies of current or emerging issues at the, request of the Committees members. All analyses are solely for the use of the Committee. Results of investigations are not available to the public. The work of the Surveys and Investigations Division is often the basis for budgetary or management decisions included in individual annual appropriation bills.
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The program is designed for individuals that are in formal government-wide or Departmental professional development programs. Examples include SES training programs, Presidential Ma.nagementiellows or individual development programs in the mid to upper level federal scale. In addition, individuals at the higher levels who are interested in applying their proven analytic or investigative skills or program expertise to new and differnt areas or issues within the Federal establishment will find the program especially interesting as the Division explores a wide variety of issues.

cc: Assistant Secretary for Congressional Intergovernmental Relations

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The ideal candidates for this program are inciMduals in Budget and Policy or related fields or who are anxious to learn those areas of expertise. In addition to CongressonaI Offices and Federal Agencies, this would be an eceJJent opportunity for Inspector General Offices and the Federally Funded Research and Development Centers. Assignments will generally be for the ength of a study not to exceed one year unless mutually agreed upon by the Committee and the parent organization. Attached is a detailed explanation of the program and includes the individuals to contact with questions or interest in the program. Respectfully,

Chairman Committee on Appropriations

Norman D. Dicks Rani<ing Member Committee on Appropriations

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House Commfttee onppropriat ions Prfssional Development Prqgam


The Program:
The House Appropriations Committee has established a unique and important program that will enable professional staff of the Congress, the Executive Branch and FFRDC community to become involved in the core Appropriations evaluation and deliberative process. The program is intended as both a learning experience and an opportunity to apply developed analytic tools to a wide variety of Federal, domestic, and defense oriented program5.

Background:
The Surveys and Investigations (S&l) Division is the evaluation and investigative arm of the Appropriations Committee. It is unique in many ways. Pt has been in existence since 1943 providing timely oer5ight, investigations and evaluation5 of issues and programs of interest to members of the Appropriations Committee. Studies and evaluations are non partisan and are authorized by the Majority and Minority leadership of the Subcommttees and the full Committee. All evaluations are for the use of the Committee and Sucommittees and are not available to the public.

Benefits of Participation:
Program participants will apply their skills to new and different i5sues and learn new skills relating to the Federal Budget, the Budget process and investigative techniques. Participants wilt work directly with permanent Committee staff and will help nanage outside contract expertise as necessary. Program participants will become intimately involved in the oi-going activities of the individual subcommittees for whom the analysis is being provided. Program participants will also have open access to the Departments and Agencies which administer the programs being evaluated and will learn how those Departments operate in contrast to their parent Agencies. Program participants will also provide direct analytic support to Appropriation Committee members on broad based, Government-wide issues. Special task forces will be established and reviews conducted by the Appropriations Committee members themselves. In return the Committee will supplement its current permanent staff with invaluable tchnicaI, program and analytic support, or expertise on issues as the, arise.

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The Program Details:


The program is a formal program for Executive-and Congressional branch mid revel employees, those individuals who are in career development programs, or higher level employees seeking to expand their analytic horizons or obtain a different perspective on how Agencies and the Congress operate. The program will also be available.to employees in federally funded research and development centers and national laboratories. Individuals will be formally detailed to the Appropriations Committee and will be subject to the rulesand regulation governing the House of Representatives as well as those governing their parent Agency. Formal evaluations of their work and coritribul:ion will be provided to their supervisors quarterly and the employees will retain their Agency status at all times. Individuals will be detailed for the standard length of time associated with the Appropriations Committee of one year or one budget cycle. However, under special circumstances, consideration will be given for shorter tenures or part-time arrangements.

The Best Candidates:


Those mid to high level employees currently in, or seeking to be proficient in, the fields of budget, investigations, and policy or program evaluations would e be5t suited for this program. Participants in Agency professional development programs which include rotations outside of the parent agency would find this program especially valuable.

Costs:
Although these will be non-reimbursable details the Committee will cover all costs associated with the conduct of a study including travel, equipment, and supplies and security clearances if needed.

Contacts:
Mr. William Inglee. Clerk and Staff Director, House Appropriations Committee Mr. Will Smith, Deputy Staff Director, House Appropriations Committee Dr. David Gibbons, Staff Director, S&1 Division, House Appropriations Committee Mr. William Greenwalt, Deputy Director, S&l Division, House Appropriations Committee 202-225-3881

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Assistant Secretary David H. Stevens U.S. Department of Housing and Urban Development Housing and Federal Housing Commissioner 451 7th Street S.W. Washington, DC 20410 Dear Assistant Secretary Stevens:

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Since mid-July, my staff has attempted to communicate with the Department of Housing and Urban Developments (HUD) Office for Congressional and Intergovernmental Relation5 regarding a waiver request submitted to the Louisville, KY field office by Baptist Housing tue. in Corbin, Kentucky. To date, no response has been provided to me or to my staff, and I am hopeful you might be able to provide some assistance with this issue. Baptist Housing is a 64-unit Section 202 HUD project that opened in 1981. The facility earned a 99% on their last REAC Inspection, and is extremely well-regarded in the community as a quality community for the elderly. Nevertheless, the facility has experienced low application intake in recent months and given the expiration of a 12-month age/income waiver in June 2009, applied to extend this waiver for another year (Application #KY36T87 1003). On June 2, 2009, 1 was contacted by the Director of Baptist Housing when he was informed by the Louisville HUD office that HUD Headquarters had issued a moratorium on the evaluation of these waiver requests for Section 202 properties. Baptist Housing has expressed concern that the lack of such waivers, especially during our current economic climate, will be devastating to their business, which provides affordable housing to numerous low-income and elderly individuals in my distrIct. Ln addition, many people in southeast Kentucky were recently displaced due to a major flood event, and finding adequate housing is of the utmost importance, I respectfully request any information you might be able to provide on the status of Baptist 1-lousings waiver application, as well as the Section 202 age/income waiver program in general. I look forward to your timely response. If you have any additional questions, please contact Megan ODonnell in my office at (202) 225-4601.

,e HAROLD ROGERS/ Member of ConIs CC:

Peter Kovar, Assistant Secretary for Congressional and Intergovernmental Relations

--I{AROLD ROGERS
6TH DISTRICT, KENTUCKY

PlEASE RESPOND TO:


WASHINGTON OFFICE:

COMMITTEE ON APPROPRIATIONS
9-INKING MEMBER SUBCOMMITTEE ON THE DEPARTMENT OF HOMElAND SECURITY SUBCOMMITTEE ON DEFENSE

2406 RAYRURN HOUSE OFFICE BUILDING WASHINGTON. DC 2051 0-lOSS 12021 225-4651 DISTRICT OFP1050: 551 CLIFTY STREET SOMERSET. K? 42501 1506) 6156346 OR I -600932-9559 801 UHIN STREET -AZARD, KY 41701 16051 4390790
110 OESOJHcE COURT SUITE A PHESTONSELIRS. KY41603 100019850900

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onsc of Reprcsentatiues Wahinton, 2O51317O
October 29, 2009 Assistant Secretary David H. Stevens U.S. Department of Housing and Urban Development Housing and Federal Housing Commissioner 451 7th Street S.W. Washington, DC 20410 Dear Assistant Secretary Stevens:

AMCLM

Since mid-July, my staff has attempted to communicate with the Department of Housing and Urban Developments (HUD) Office for Congressional and Intergovernmental Relations regarding a waiver request submitted to the Louisville, KY field office by Baptist Housing Inc. in Corbin, Kentucky. To date, no response has been provided to mc or to my staff, and I am hopeful you might be able to provide some assistance with this issue. Baptist Housing is a 64-unit Section 202 HUD project that opened in 1981. The facility earned a 99% on their last REAC Inspection, and is extremely well-regarded in the community as a quality community for the elderly. Nevertheless, the facility has experienced low application intake in recent months and given the expiration of a 12-month age/income waiver in June 2009, applied to extend this waiver for another year (Application #KY36T87 1003). On June 2, 2009, I was contacted by the Director of Baptist Housing when he was informed by the Louisville HUD office that HUD Headquarters had issued a moratorium on the evaluation of these waiver requests for Section 202 properties. Baptist Housing has expressed concern that the lack of such waivers, especially during our current economic climate, will be devastating to their business, which provides affordable housing to numerous low-income and elderly individuals in my district. In addition, many people in southeast Kentucky were recently displaced due to a major flood event, and finding adequate housing is of the utmost importance. I respectfully request any information you might be able to provide on the status of Baptist Housings waiver application, as well as the Section 202 age/income, waiver program in general. I look forward to your timely response. If you have any additional questions, please contact Megan ODonnell in my office at (202) 225-4601.

HAROLD ROGERS/ Member of Congre

CC:

Peter Kovar, Assistant Secretary for Congressional and Intergovernmental Relations

U.S. HOUSE OF REPRESENTATIVES


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ASSISTANT SECRETARY FOR CONGRESSIONAL AND INTERGOVER.NNENTAL RELATIONS

The Honorable Harold Rogers U.S. House of Representatives Washington, DC 205 15-1705 Dear Representative Rogers:

FEB 18 2010

On behalf of Assistant Secretary, Dave Stevens, thank you for your letter regarding Baptist Housing, located in Louisville, Kentucky. Your letter indicates that Baptist Housing has experienced low application intake in recent months and, in June 2009, applied for a 12-month extension of the June 2008 waiver. It further indicates that the Director of Baptist Housing informed you that the Department was suspending evaluation of all waiver requests for Section 202 projects and that this will be devastating to their business. You request information on the status of Baptist Housings application for an age and income waiver and information on the Department of Housing and Urban Developments policy on age and income waivers for Section 202 elderly housing projects. The Departments Louisville Multifamily Program Center reported that Kentucky Housing Corporation, the Departments Performance Based Contract Administrator (PBCA), approved a blanket waiver request for Baptist Housing on June 20, 2008, for a period of one year. The PBCA does not have the authority to approve regulatory waivers on behalf of the Department. The Program Center further reported that the owners May 11, 2009, request for an additional waiver was denied. Baptist Housing was initially endorsed under the Departments Section 202 Direct Loan program and has been refinanced under the Departments Section 223(f) program. The project has a Section 8 Housing Assistance Payments (HAP) contract, and the owner has executed a Use Agreement which requires the owner to admit tenants in accordance with 24 CFR 891.575 (a) and the Section 8 HAP contract. Since the Section 202 mortgage has been prepaid, it is not subject to the Housing Act of 1959 nor its implementing regulations by operation of law, but instead by operation of a contract, the Use Agreement. If the project cannot comply with the terms and conditions of the Use Agreement, which requires the project to operate in accordance with all applicable Federal Regulations, then the owners request would be for a change in the terms and conditions of the Use Agreement, not a regulatory waiver. Pursuant to Baptist Housings Use Agreement, it must comply with all of HUDs regulations, including 24 CFR 891.575 (a). This particular regulation requires the project to make the units available to eligible families, which is defmed as elderly or handicapped famil[iesj.. . under 24 CFR 891.520. However, in situations where the owner is unable to

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market the units to eligible elderly or handicapped families, the regulations at 24 CFR 891.575 (e) provide for temporary relief from these requirements and, the Departments Multifamily Hub Directors have the authority to approve the admission of families who are not elderly or handicapped to Section 202/8 properties. The approval under the regulation must be of limited duration, usually for one year. This authority does not apply to Section 202 Project Rental Assistance Contracts (PRAC) and Project Assistance Contracts (PAC). The Use Agreement executed on behalf of the project by the owners requires compliance with all applicable Federal Regulations, and the project has, as mentioned, received a one-year waiver of the regulation to allow near elderly, low-income applicants into the project. Given that the purpose of the Departments program is to provide housing to eligible elderly and handicapped, very low-income applicants, the Department does not have the intent to modifS Baptist Housings Use Agreement to keep the project operational over a longer period for a population that would not meet the tenns and conditions. I hope this information is helpful in responding to your constituent. If I can be of further assistance, please let me know. Sincerely,

Peter A. Kovar Assistant Secretary for Congressional and Intergovernmental Relations

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market the units to eligible elderly or handicapped families, the regulations at 24 CFR 891.575 (e) provide for temporary relief from these requirements and, the Departments Multifamily Hub Directors have the authority to approve the admission of families who are not elderly or handicapped to Section 202/8 properties. The approval under the regulation must be of limited duration, usually for one year. This authority does not apply to Section 202 Project Rental Assistance Contracts (PRAC) and Project Assistance Contracts (PAC). The Use Agr&ment executed on behalf ofthe project by the owners requires compliance with all applicable Federal Regulations and, the project has already received a one-year waiver of the regulation to allow near elderly, low-income applicants into the project. The purpose of the Departments program is to provide housing to eligible elderly and handicapped, very low-income applicants. It is not the Departments intent to modify Baptist Housings Use Agreement to keep the project operational for a population that does not meet the terms and conditions. I hope this information is helpful in responding to your constituent. If I can be of further assistance, please let me know. Sincerely,

Peter A. Kovar Assistant Secretary for Congressional and Intergovernmental Relations

U. DEPART OF HOUSG AND URBAN DELOPME

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OFFICE OF CONGRESSIONAL AND INTERGOVERNMENTAL RELATIONS

JUN 19 2008
The Honorable Harold Rogers U. S. House of Representatives Washington, DC 20515-1705 Dear Representative Rogers: Thank you for your letter of May 29, 2008, to Deputy Secretary Bernardi supporting an application from the Beattyville Housing and Development Corporation, Inc. for funding under the FY 2008 Rural Housing and Economic Development Program competition. Approximately $17 million is available under the FY 2008 Rural Housing and Economic Development Program. The purpose of the program is to support innovative housing and economic development activities at the State and local level in rural areas. Applications were submitted pursuant to the Notice of Funding Availability (NOFA) that was published in the Federal Register on April 28, 2008. The Department will consider each eligible application that was received by the submission deadline of May 30, 2008. All applications will be rated and ranked in accordance with the fair and uniform selection procedures described in the NOFA.

Thank you for 6 Interest further assistance.

the epanments programs. Please let me ow if I can be of

Mark A. Studdert General Deputy Assistant Secretary for Congressional and Intergovernmental Relations

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CPa 33
The Honorable Harold Rogers U. S. House of Representatives Washington, DC 20515-1705 Dear Congressman Rogers: Thank you for your letter of May 29, 2008, to Deputy Secretary Bemardi supporting an application from the Beattyville Housing and Development Corporation, mc, for funding under the FY 2008 Rural Housing and Economic Development Program competition. Approximately $17 million is available under the FY 2008 Rural Housing and Economic Development Program. The purpose of the program is to support innovative housing and economic development activities at the State and local level in rural areas. Applications were submitted pursuant to the Notice of Funding Availability (NOFA) that was published in the Federal Register on April 28, 2008. The Department will consider each eligible application that was received by the submission deadline of May 30, 2008. All applications will be rated and ranked in accordance with the fair and uniform selection procedures described in the NOFA. Thank you for your interest in the Departments programs. Please let me know if I can be of furthe assistance. Sincerely,

Mark. A. Studdert General Deputy Assistant Secretary for Congressional and Intergovernmental Relations

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Re: Mr. James Doughton .._CarnptonAJnitei.Metho.disL Church. P0 Box 159 Campton,KY 41301 Dear Friend:

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According to the information I have received, Campton United Methodist Church applied for a Capitol Improvement Loan in 1994, for a multifamily project built in 1970 for Low income family housing, known as Campton I. They entered into a new program known as Market -toMarket in 2004 and this program was supposed to pay off the balance of the original mortgage and borrow funds to put into the reserve for replacement funds account. This program also stated that if there were to be any surplus cash at the end of a fiscal year, the owners would get an inentive performance fee of up to three percent from that year. This incentive was to be paid before any payments on the mortgage td 1-IUD. There wasa niistake on the new program with the interest rate. HUD has agreed to correct the interest irate from the beginning and apply it to the note, but Campton I has not received any changes on the incentive that they should have been getting. Please advise me if this is possible for the incentive to be carried back for the last three years and six months. Your assistance in this matter will be greatly appreciated. Please refer all correspondence in this regard to myDistrict Office in Somerset, Kentucky. Thanking you in advance for your kind cooperation in this regard,cI remain Sincerely,
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TheHonorable Harold Rogers Meiber, United States H*se of Representatives 5SlClifty Street Sonerset, KY 42501-1782 DeRepresentative Rogers:

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Thank you for your letter of February 2008, on behalf of your constituent, owner of Campton Methodli Housing I apartments in Campton, Kentucky.
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As noted in your letter, the subject prefty restructured its debt under the Mark-to-Market (M3) program in 2004. At that time, a Capial Improvement Loan originated in 1994 should have beensubordinated to the newly created mortge debt. Also, the terms of the Capital Improvement LoaLshould have been modified to reflect its bordinate position and a lower interest rate. The Deprtment of Housing and Urban Developmt erred in not modifying the terms of that loan and, as arsult, subsequent payments made on thathan have reduced the surplus cash from property opettions that otherwj migt have been avable for owner incentive fees and other distributions. HUT) and ihave executecorrective documents to modify the terms of the Capl Improvement Loan. The Department icurrently working cooperatively with to rJculate the accounting for each of the ys since the M2M restructure, to calculate the appriate distribution of funds and determinewhether an incentive fee should be paid to the ownr for those years. Final resolution is ant4ated in the very near future.
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I hope this information is helpful in respnding to your constituent. If I can be of further assisance, please let me know.

hark A. Studdert (neral Deputy Assistant Secretary for Congressional and Intergovernmental Relations

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U.S. Departmnt olHousing and Urban Development Previous edition is obsolete. form HUD-7 13.1 (02)03)

Oflicial Record Copy