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HAP Contracts

HUD revised Section 8 Contract Renewal Policy Guide (Guide) is a maze of instructions. While traversing the Guide one can become lost or confused when Owners/Agents are doing their “Due Diligence” in deciding which Option under the Guide to choose for renewals/annual rent adjustments of their Section 8 Contract.  

 

There are so many “what if” questions that should be answered before making an Option choice. Choosing the incorrect Guide Option could be costly that may not benefit the Owner, especially if you commission a Rent Comparability Study (RCS). You may not be aware there are alternative approaches to commissioning RCSs.

 

In my experience as a HUD Housing Consultant, HUD Budget-Based Rent Increase (BBRI) Worksheet submissions to HUD Contract Administrators/HUD whether with a Contract Renewal or just a BBRI request Owners/Agents miss the mark and do not include all Budget Expenses they are entitled to.

 

Section 8 Contract Renewals

HUD replaced HUD Notices H98-34, H99-08, H99-15, H99-25, H99-32, H99-36, H00-12 & H00-21 with the Section 8 Renewal Policy guide book (PDF), revised on March 1, 2017.  The Guide is in a Portable Document File (PDF) format.  The file can only be read by an Acrobat Reader. 

Highlights

This document applies to all Multifamily Housing Projects with expiring project-based Section 8 assistance contracts, unless otherwise noted. It does not apply to Moderate Rehabilitation projects, Section 8 project-based certificate contracts, Section 8 project based voucher contracts or former Section 23 projects administered by the Office of Public and Indian Housing or to any projects administered by the Office of Community Planning and Development.

There have been several changes to the original November 7, 2001 publication of the Section 8 Contract Renewal Policy Guide.

Nonprofit Owners

Nonprofit owners, especially Section 202 project owners, should take note of a special provision in Section 8 Renewal Policy guide book.  Section 8 contracts executed under this Notice, give nonprofit owners the option of submitting a BUDGET - BASED  RENT  INCREASE  FOR  CAPITAL  REPAIRS.  

PRAC Contract Renewals

Renewal of Expiring Project Rental Assistance Contracts (PRACS) for Projects Under the Section 202 Program of Supportive Housing for the Elderly and the Section 811  Program of Supportive Housing for Persons with Disabilities

The Departments of Veterans Affairs and Housing and Urban Development and Independent Agencies Appropriations Act of 2002 has issued separate instructions authorized the Department to renew expiring PRACS for a term of one year. These guidelines provide instructions for renewing expiring Project Rental Assistance Contracts for Section 202 and Section 811 projects.

Rent Supplement and RAP Contracts

Rent Supplement and Rental Assistance Payments (RAP) are Housing Assistance Payment (HAP) Programs that are different HAP programs; e.g., Section 8, Enhance Vouchers, Regular Vouchers, in their self, that deserve a discussion separate from other HAP Programs.

Further, HUD proposed a Rental Assistance Demonstration in the FY 2012 Budget to convert the expiring RS & RAP contracts to long term Section 8 Contracts.

Currently by Law, HUD can ONLY allow extensions of RS and RAP Contracts for up to one year on expiring Rent Supplement and RAP contracts that are set to expire on or after April 15, 2011, but not later than September 30, 2011.

Consulting Services

I provide consulting services nationwide for preparation of proposals for renewal of Section 8 contracts and PRAC.

If you need assistance in preparing proposals for renewal Section 8 or PRAC contracts, please contact me.

Contact me  by phone 301-277-3465 or by email at alvinl.sutherlin@verizon.net and I can discuss the status of your project.

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Date Updated: 12/02/2017 04:34:53 AM