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Sample Mark-to-Market Form 10.4(b) Notification to HUD Project Manager of Market Rent Determination; Transmittal of Section 8 HAP Contract From: PAE To: HUD Project Manager Transmission: Overnight Hard Copy ________________ (date) Project Name: __________________________________________________________ FHA Number: _________________________________________________________ Section 8 HAP Contract Number: __________________________________________ REMS ID Number: _____________________________________________________ Please check the appropriate box: o First Notice o Revised Notice Based on Appeal Dear [insert name of HUD Project Manager]: We have sent the attached letter to the owner of the subject property and provided the owner with the new Section 8 HAP Contract based on the approved rents. In accordance with the current Section 8 HAP Contract, please terminate the current Section 8 HAP Contract as of the end of the next full month, [Insert the corresponding date included in Form 10.4(a), or other Notification to Owner], as indicated in the attached letter. In addition, in anticipation of the owner’s execution of the new contract, please reserve funds where appropriate, and prepare to execute the new Section 8 HAP Contract if/when it is received from the owner. While we have asked the owner to provide us a copy of the contract when they provide it to you, in the event that they do not do so, we would be grateful if you would notify us by phone when you receive the new executed contract from the owner. [In the event the project has been determined ineligible as a Lite and the owner has refused a conversion to a Full Debt Restructuring, we have attached a copy of our narrative discussion, financial analyses, PCA, and other information on the property for your consideration.] January 2001 Form 10.4(b), Page 1 We appreciate your assistance and cooperation in marking Section 8 rents to market. If you have any questions about this transaction, please do not hesitate to contact [insert PAE contact name] at [insert phone]. Sincerely, PAE cc: Section 8 Contract Administrator OMHAR Regional Office Enclosed: Copy of Form 10.4(a) or other appropriate form Notification to Owner Section 8 HAP Contract (unexecuted copy) [Copy of narrative, financial analyses, PCA, and other information on the property’s condition, as appropriate.] January 2001 Form 10.4(b), Page 2

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