Regulations * Notices * Directives

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Section 8 Renewal Policy Guidance for the 
Renewal of Project-Based Section 8 Contracts

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, updated Effective 11/5/15.

The Guide is in a Portable Document Format (PDF) format. The file can only be read by an Acrobat Reader.

Click here to purchase the Guide.

I will provide you with a copy of the Section 8 Renewal Policy, Guidance for the Renewal of Project-Based Section 8 Contracts, on a CD with all of the updated changes. My fee is for copying expense and my time ($120).

If you need assistance in preparing a request for submission to your Contract Administrator, me at alvinl.sutherlin@verizon.net
 

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 Non-Profit Owners Request for 
Budget-Based Rent Increases for Capital Needs

Non-profit owners may apply for a Budget-based Rent Increase for Capital Needs. This increase is in addition to annual Section 8 rent increases, for renewed contracts under the new Section 8 Renewal Policy guide.

If you need assistance in preparing a request for submission to your Contract Administrator, me at alvinl.sutherlin@verizon.net
 

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Project Rental Assistance Contract (PRAC)

Project Rental Assistance Contract (PRAC) Renewal - HUD has issued special instructions for renewing PRACs. If you need assistance in preparing a request for renewal, contact me.

Group Homes – (Chronic Mental Illness and HIV/AIDS)
 

Group Homes that serve tenants who are Chronically Mentally Ill and HIV/Aids may apply for vacancy losses and are entitled to rent increases.
Additionally, 202/PRAC projects, by statute, may fund a portion of a social/supportive services plan from PRAC funds. The current limit is $15/unit/month. This would provide a project with some dollars for direct expenses, or funds to use to leverage other third party dollars into the project.

If you need assistance in requisitioning vacancy losses and preparing a rent increase, contact me  by phone 301-277-3465.
 

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Service Coordinators

Periodically, HUD publish Notices of Funding Availability (NOFA) for grants to fund Service Coordinators for elderly FHA properties ONLY.

Alternative Funding

Elderly Projects

Elderly projects may use alternative funding through a Budget-based rent increases or Special Section 8 adjustments and use of Residual Receipts to hire a Service Coordinator.

Family Projects

Section 8 assisted housing serving very-low families also are eligible for Service Coordinators funding, through Section 8 Special Rent Adjustments, Budget-based rent increases or use of Residual Receipts. To qualify, very-low income families various unmet social needs must have the following affect:

• Unmet social needs place a high level of stress on the individual family unit.
  

• This stress results in dysfunctional system of relating to others within the family unit, the project, and those within the larger community.
  

• The result of these social unmet needs impacts the management and the physical condition of the project.

If you need assistance in preparing a request for submission to your Contract Administrator, contact me at alvinl.sutherlin@verizon.net .

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Management Fees

For projects where rents are set through an expense-based rent formula, HUD will use the approved management fee percentage in processing all rent increase requests. In certain cases, the approved fee percentage is used (REGARDLESS OF THE FEE YIELD), to determine your fee yield on actual rent collections.

If the rent increase is 20% or less of the current potential, the current management fee percentage is applied to the new potential, even if the yield that is derived is greater than the established range.
 

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Section 8 Special Rent Adjustments

Section 8 Contracts Rents - Annual Adjustment Factors (AAF)
For all projects’ Section 8 contracts whose rents are adjusted through published Annual Adjustment Factors, special additional adjustments could be granted. Adjustments could be made to reflect increases in the actual and necessary expenses of owning and maintaining the assisted units which have resulted from substantial general increases in real property taxes, assessments, utility rates, and utilities not covered by regulated rates, and which are not adequately compensated for by annual adjustments. Owners must submit to the contract administrator required supporting data, financial statements and certifications. If you have been notified that your rates for utilities, real estate taxes, special assessments have substantial increased, contact me, I may be able to get you Special Rent Adjustments.

If you need assistance in preparing a request for submission to your Contract Administrator, contact me.

Send email to alvinl.sutherlin@verizon.net 
 

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Section 8 Rent Increase

AAF Rent Adjustments

Original Section 8 Contracts may restrict owners' rent increases through application of HUD published Annual Adjustment Factors (AAF).

Projects with Section 8 Contracts where rent increases are subject to published Annual Adjustment Factors, may not have to incur the cost of a Rent Comparability Study. HUD has implemented a new procedures. If this applies to your project and you need assistance in preparing a request for a rent increase, contact me.

If the owner fails to submit the information required by this Notice at least 60 days before the contract anniversary date, then the rent levels will not be adjusted on the contract anniversary date, rather the new rent levels will go into effect 60 days after receipt of the required information.

However, if the owner fails to submit this information by the date of the FY HAP contract anniversary, then no increase will be granted for the FY contract year.

Budget-Based & OCAF Rent Increase Methods
Section 8 Contracts renewed under the new Section 8 Renewal Policy, Guidance for the Renewal of Project-Based Section 8 Contracts, may be renewed under four (4) Options. Rent adjustments can only be increased through HUD published Operating Cost Adjustment Factor (OCAF) or Budget-based methods.

I will analyze your project data for submission to HUD at no cost. You will be notified of the feasibility of using the old or new procedure.

If you need assistance in preparing a request for submission to your Contract Administrator, contact me.

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Other Items of Interest

The following publications may be of interest to you.

• Current Federal Register Publications

• Current Fair Market Rents

• Current Sections 236/221 (D)(3) BMIR Income Limits

• Current Section 8 Income Limits and Fair Market Rents

If you need assistance in obtaining copies of any of the above documents, please contact me by Phone, Email or Fax.

Send email to alvinl.sutherlin@verizon.net 

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