Fax: (202) 265-4435 Contract Renewal Request Form (form HUD-96254). �����O'-[�� ��ٚ��� ]}�l�Ӎ���q��h�[��M���tB`?�iÁ���Q�8�'u��m��F-2��N�Y-7Y� qsHUίft�.��TS�. The Department of Housing and Urban Development released a new Section 8 Renewal Policy Guide containing comprehensive guidance for renewing expiring Section 8 Housing Assistance Payment (HAP) contracts. The body of the guidebook contains stars (*) to indicate where specific text has been revised. The Contents of the Guide are as follows: Chapter 4: Option Two, Contract Renewals For Other Projects with Current Rents At or Below Comparable Market Rents, Chapter 5, Option Three, Referral to Recap, Chapter 6, Option Four, Renewal of Projects Exempt from or not Eligible for Debt Restructuring, Chapter 7, Option Five, Renewal of Portfolio Reengineering Demonstration or Preservation Projects, Chapter 12, Physical Condition of the Project, Chapter 13, HUD’s Refusal to Renew Section 8 Contracts, Chapter 14, Rural Housing Service (RHS) Section 515/8, Chapter 15, *Section 8 Preservation Efforts*, *Chapter 16, “Old Regulation” State Housing Finance Agency Projects – Owner Options upon Full Prepayment of Original, Permanent Financing, Please send any questions you may have on the new Guide to Section8RenewalGuide@hud.gov, National Housing & Rehabilitation Association L. No. (2) The PHA may not enter into a HAP contract for any contract unit until the PHA has determined that the unit complies with the HQS. 5 HOW TO APPLY FOR A 20-YEAR HAP RENEWAL Expiring HAP Contracts (Typical Renewal) Properties whose contracts are expiring should follow these steps: 1. Select the desired Option and specify a period of 20 years. The guide includes some policy changes, which will be effective for all renewal or amend rent packages received by the Department after November 5, 2015. Identifies eligibility requirements for “marking up to budget” and provides instructions for future rent adjustments. Identify the key program elements, requirements, regulatory agencies, and documents used to renew expiring HAP contracts Identify important timeframes and deadlines for submission of documentation Recognize the options for renewal depending on the contract and each specific property Describe each option and the requirements for submission Expiring HAP contracts covering units in multifamily housing projects are eligible for renewal. Provides owners with an appeal process to follow in cases where their request to renew is rejected. 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. 108 (42 U.S.C. Provides instructions for renewing a contract in cases where a contract’s current rents are at or below comparable market rents but the contract is not being renewed using the MUTM option. %PDF-1.7 vacancy; reviews expiring HAP contracts and updates rent schedules and databases as required; assists owners and managers in the implementation and interpretation of HUD rules and regulations. At least 12 months prior to the HAP expiration date, the owner shouldconduct a resident meeting to explain the HAP Contract expiration process and rovide tenants p with written notice as to their intent to renew the Section 8 contract. Contract Renewal Request Form (form HUD-96254). endobj It represents the most comprehensive picture of project-based subsidies yet developed, but like any "snap-shot", its usefulness has limits, although, Multifamily plans to refresh this data on a monthly basis. The Auto OCAF was created to streamline the rent increase process. This occurred because HUD guidance does not require HUD staff to consider using residual receipts as a possible funding source when renewing expiring Section 8 contracts. When project-based Section 8 contracts expire, owners may choose to opt out of their contracts, enabling them to increase rents to market levels or to convert units to market-rate condominiums, thereby rendering … (a) PHA inspection of housing. Depending upon the owner’s request, HAP contracts may vary in duration of one year to 20 years. If your contract is expiring, please see our Contract Renewal Options above to determine your renewal option for the upcoming year. Tenants in properties where the HAP contract expired in December 2018 or after (see the NLIHC Map of Expiring Contracts, supra) may still be protected. 3 0 obj Notice is posted/mailed to residents 120 days prior to contract expiration. This database was created to provide HUD partners/clients with a way of measuring the potential impact of expiring project-based subsidy contracts in their communities. Rent Adjustment Types. expiring contract Housing Notices, along with a number of changes. Discusses early contract termination, rent comparability studies and which contracts to use by chosen option. Describes the difference between a regular voucher and an enhanced voucher. e. The housing assistance payment for the first and last month of the HAP contract term will be pro-rated for a partial month in accordance with actual occupancy. Select the desired Option and specify a period of 20 years. Provides instructions for processing either OCAF or budget based rent adjustment requests. Outlines projects eligible to renew under this option and documentation to be submitted by the owner to HUD/Contract Administrators for review. Provides instructions for renewal in cases where the project had its rents reduced and/or had its mortgage restructured. Paperwork Deadlines: The subsequent contract renewal submission is due 120 days prior to the date that the contract expires for HAP contracts that have renewed since 1997. Identifies who is eligible for renewal under MUTM option and how to process the renewal request. Details how to renew a contract that has been through the Demonstration program. When Park … Chapters 2 and 16 have been completely revised and do not contain stars (*) to indicate specific changes in the text. 1701 note. 105-65, Tit. Outlines the owner’s renewal submission requirements and provides instructions for initial and subsequent renewals. As a living document, over time this Guide is expected to contain nearly all of the information related to the renewal of expiring Section 8 HAP contracts….The instructions in this Guide apply to all Contract Discusses how a project’s physical condition impacts the contract renewal process. For example, if your contract expires June 30, your (b) Service requirements. Pub. Provides instructions for processing owner opt-outs, which are expiring Section 8 project-based contracts whose owners elect not to renew the contract. Coordinates with Intake staff on the Section 8 voucher portability. (Section 2-4.B.4) 4. Expiring project-based Section 8 assistance contracts. 2 0 obj HUD form 9625 Instructions. To get started with a 20 Year HAP renewal, just follow the instructions below: Expiring HAP Contracts (Typical Renewal) Properties whose contracts are expiring should follow these steps: 1, Complete the following documents: a. To get started with a 20 Year HAP renewal, just follow the instructions below: Expiring HAP Contracts (Typical Renewal) Properties whose contracts are expiring should follow these steps: 1, Complete the following documents: a. Most landlords are not obligated to renew their contract after it expires, but, in certain cases, some may be. •HAP contracts = usually 20-year term •Most owners are not required to renew HAP contract at the end of its term •Owner decision to renew or “opt out” of the HAP contract depends on variety of economic (rent levels) and non-economic (administrative burdens) factors •HAP contract is critical to maintain resident V, § 524, 111 Stat. The Department of Housing and Urban Development released a new Section 8 Renewal Policy Guide containing comprehensive guidance for renewing expiring Section 8 Housing Assistance Payment (HAP) contracts. Outlines the circumstances under which HUD may refuse to renew an expiring Section 8 contract. Owners should explain to residents their rights per the Section 8 Renewal Guide guidelines and provide tenants with written notice as to the intent to opt out of the Section 8 contract. Statistics. ), permits the renewal and funding of expiring § 8 HAP contracts… 4 0 obj Main Phone: (202) 939-1750 <>/Metadata 105 0 R/ViewerPreferences 106 0 R>> Discusses early contract termination, rent comparability studies and which contracts to use by chosen option. When this option is selected, if the Certification Effective date is on the 1st of the month, the system will set the HAP Contract End date to the end of the previous month. Outlines how to renew a Section 8 contract for a Rural Housing Service (formally Farmers Home) Section 515 project. Complete the following documents: a. All Section 8 contracts expiring in FY 2013 will be renewed if eligible under current program rules and will receive full twelve month funding. However, funding for the contracts is provided 12 months at a time . Organize tenant associations to advocate for, preserve and protect tenants in HUD Project-based Section 8 buildings which are facing foreclosure or expiring HAP contracts Work with a network of residents and active tenant associations to preserve affordable housing Most Section 8 properties are governed under a Housing Assistance Payment (HAP) contract between HUD and the landlord. Provides instructions for processing either OCAF or budget based rent adjustment requests. The United States Housing Act of 1937 requires that assistance contracts signed by owners participating in the Department's Section 8 housing assistance payment programs provide annual adjustments to monthly rentals for units covered by the contracts. Expiring HAP contracts covering units in multifamily housing projects are eligible for renewal. Section 524 of MAHRA and the regulations in 24 CFR part 402 authorize renewal of expiring or terminating Section 8 project-based assistance contracts for projects without Restructuring Plans under the Mark-to-Market program, including (1) projects that are not eligible for Restructuring Plans or are otherwise exempt, and (2) eligible projects for which the owners request contract renewals … The OCAFs are usually published in February of each year. To notify residents of the owner's intent to renew their expiring HAP contracts. Most landlords are not obligated to renew their contract after it expires, but, in certain cases, some may be. Identifies the owner’s responsibilities to the tenants and provides processing instructions. HAP contracts generally last between 5 and 20 years, with the majority being 20-year contracts. Current Contract. Section 524(a) of MAHRA, as amended by § 531 of the Preserving Affordable Housing for Senior Citizens and Families into the 21st Century Act (12 U.S.C. Legislative history of the Multifamily Assisted Housing Reform and Affordability Act (MAHRA). x��ZmO��������Qcv�^�U���*z �Quu?��$��������� �l����}fg�y����w����[��ħOpt܇�/�L���_�{�#�Ǘ���KA��H������=�y��pB �_G��0������I��8����`��P6���("B a�9�d�%H�D>�̠��Ԡg$����!����-��ï�{��$��@�@9By໾�>��7%p;�@D�H�u'��6�%�z �%P����-%P�H �A��B�#!��B��?��=��2 W4c���]@Jb�ـsf���خ� v/���6�{��]�=ςo�[[[U:�{ڊg48�{�u�o���qI� ۳��^h��[e �O�{�,��I�/�t��$�g1M ���;\|ca/�L�g�2�U�f�Nh��yq���U��C՝pJ)'6 Wv :��ԡ���_n��W V-��� The property must not have any restrictions stated in the Section 8 HAP contract or Use Agreement that prohibit the owner from opting-out. Contract Renewal Request Form (form HUD-9624). Outlines the procedure for providing budget-based rent increases to owners who renew under the Capital Repairs Program or the Transfer Program. Outlines all of the steps that must be followed to assure that tenants are protected during the renewal process. Information on how to calculate waivers to various provisions in the Guide. Worksheets for Mark-Up-To-Market (Option 1) Contract Renewal Request Form HUD form 9624. When the HAP contract rents exceed the LIHTC or market rents, typically called ”HAP overhang,” it poses a problem for the lender because the HAP contract may expire and most HAP contracts are subject to annual appropriations. renewing expiring Section 8 Housing Assistance Payments contracts for insured multifamily properties. Some owners have reserves that can cover debt obligations and operating expenses for several weeks or months. Allow Option Five contracts to terminate early and renew under Option Five. Through the HAP contract, owners agree to provide housing assistance to eligible households and receive payment for their services after submission of their monthly HAP voucher. Posting on resident’s door is not permitted. (b) Existing housing. Provides instructions for conducting and reviewing a rent comparability study (RCS). 4 1437f note). endobj Forms and instructions at: http://portal.hud.gov/hudportal/HUD?src=/program_offices/housing/mfh/mfhsec8 b. Provides six options available to owners with expiring Section 8 HAP contracts. Schedule a … 1.15 DSCR. Most Section 8 properties are governed under a Housing Assistance Payment (HAP) contract between HUD and the landlord. Tenants pay 30% of their monthly adjusted income for rent and utilities, and HUD pays the owner the difference between Notice is … These contracts can be renewed in one-, five-, or 20-year increments . Other Information. year HAP contract until h, when the HAP contract was due to expire. Chronological list of HUD’s rulemaking and administrative policies for implementing statutory and regulatory requirements associated with Section 8 expiring contract renewals. ����D��8�P^r>��.�I� -����*�;�.�\�l�$������,$u�ZG�-��|�M|+ �-���ɨ_�H���Z�{�XX��^W��_��'Y�ؐ�l�!C�&��xD�A��H��ZP\�Q����h��@�(��|W6�y10�iE&/q��۴V}T��ֺ�m~�Ԏ�x�B9 At least 12 months prior to the HAP expiration date, the owner shouldconduct a resident meeting to explain the HAP Contract expiration process. 1 0 obj Your HAP Contract will determine the rent adjustment method you should use. Expiring HAP contracts covering units in multifamily housing projects are eligible for renewal. HAP contracts generally last between 5 and 20 years, with the majority being 20-year contracts. 'sB�$C��0U��#^��������(!�V����z$j�@;a��7ڮ� 0���a� `� C���!��֎���ߑ�(��U�T�t'��#�A�^�R:�k��2��1xW�����R;��x��Ռ��#��@�+(t��D�O2M����y�ue� s�vÒV8HՃr}Y5�!EF��Ϛ�� M�lM~ch�i}-hI%����*�.���%W�#d�Y�V)F��b�VJA�� The HAP contract will provide that the Borrower will, at least one year before the end of the HAP contract term, notify each family leasing an assisted unit of any increase in the amount the family will be required to pay as rent as a result of the expiration. Transferring Budget Authority of a Project-Based Section 8 HAP Contract This database was created to provide HUD partners/clients with a way of measuring the potential impact of expiring project-based subsidy contracts in their HUD provides Section 8 rental subsidies to the owners of certain mortgaged properties pursuant to a HAP Contract. endobj Outlines various ways a contract can be renewed. Section 8 Renewal Policy FORMS 9636-9644. In 2021, Happ will … Indicate that contracts eligible for the Auto OCAF will have the RCS adjusted Certification of Substantial Reviewer. The guide includes some policy changes, which will be effective for all renewal or amend rent packages received by the Department after November 5, 2015. All existing multi-year contracts that expire after FY 2013 and have anniversary dates in the first quarter of FY 2013 (October-December) will receive full twelve month funding, assuring sufficient funding to carry them into the first quarter of FY 2014.  Expiring HAP Contracts with no Renewal HAP Contract o If the development has an expiring HAP contract that will not be replaced with a new HAP contract, the appraiser may consider that the property may turn to market upon the expiration of the HAP contract in the as is valuation. <> Contract Renewal Request Form (Form HUD-9624): Select the desired option and specify a period of twenty years. Appendix 2 - Owner's Certification : Certifies that the Owner complied with the tenant comment period procedures set forth in 24 CFR 245. Each lender handles this perceived risk differently: If the HAP Contract is renewed even though the project is ineligible for a Lite, the AE must renew the HAP Contract using a Watch List Contract at Recap-determined comparable Market Rents. OCAF Rent Adjustment worksheet - HUD Form 9625. worksheet in MS Excel spreadsheet format. Notice must be hand delivered and/or delivered by mail. Complete the following documents: a. Ian Happ signed a 1 year / $4,100,000 contract with the Chicago Cubs, including $4,100,000 guaranteed, and an annual average salary of $4,100,000. Defines housing conversion actions and identifies tenant notification requirements an owner must meet in a housing conversion action. contracts expired 30 years later, HUD negotiated and signed renewal contracts that includedthe New York State Housing Trust Fund Corporation as a “contract administrator.” The use of PHAs as contract adminis-trators for HAP contracts is HUD’s current standard practice. Section 8 Renewal Guidebook and contact your HAP Officer to discuss this issue in further detail. Provides six options available to owners with expiring Section 8 HAP contracts. 4. A multifamily housing project is a property consisting of more than 4 dwelling units that is covered in whole of in part by a contract for a project-based assistance under Section 8 … If the Certification Effective Date is the 2nd through 31st of the month, the system will set the HAP Contract End Date to the end of the current month. which authorized renewal contracts with owners whose original Section 8 HAP contracts were expiring. Identifies items an owner must submit with its renewal request and it outlines what steps Recap will take if a restructuring agreement is not reached between the owner and Recap. (1) Before execution of the HAP contract, the PHA must inspect each contract unit in accordance with § 983.103(b). How to Apply for a 20-Year HAP Renewal: Expiring HAP Contracts (Typical Renewal) 1. "M�0E1+� 2�����4SQ�4"Y��.�Q>��f�k��l;���W�7 ]w)�Ba�� �8�P�H��u��u2�N���s�ӶS�4`T9��K��W)W�����NXa����y��Qa_Ln�P��9�\*�]a�V~���cw�{V a2zf�f�k������3Wav�k�Y6ov�h킲sV�0��D��I(�DVYo����v�i������p մ��z>�EM��т�������ϵ�������>&z��#*���~�Vi�/|�(����-���B��'w��0���5��X�h��"u%u���g� �ò�P��*�q@�Ɓ��+m�1"'��62t��G���9i������K���S�h�:���W��t�v��[�فw�c|/�2����sWs�^�)�b�K]9]S&��[S�^8�N���S�|o�e�U��j��[j#��ݤ`�b�s�M� �}j��in�= 1u�^� ��>C��s�s��ۢJg�ч�X6�!�NXb��J��Y‚7��[�{�{㜺���U�"�'�0�]ғ�?�N��Í3u��>ÀBֺ&޴C۾�kv�� Discusses procedures by which a project with rents above comparable market rents is referred to the Office of Recapitalization (Recap) (formerly known as the Affordable Housing Preservation (OAHP)) for processing and renewal. Properties with contracts expiring after February 11th are subject to the new OCAF values. The Auto OCAF will automate the process of an OCAF rent increase for Section 8 contracts in Amend Rent years. Replaced expiring HUD HAP contracts with new financing to preserve affordability for 55 years; Learn more... Latest News: Affordable Housing Impact Study on Jamboree Residents Find out what's in Jamboree's affordable housing pipeline Want to end OC homelessness? balance on the terminated non-MAHRA contract; and agrees to sign the “Rider to the Original Section 8 Housing Assistance Payments Contract (HUD-93184).” (Section 2-4.A) 3. f. EDEN will not pay the tenant rent, or any claim by the owner A multifamily housing project is a property consisting of more than 4 dwelling units that is covered in whole of in part by a contract for a project-based assistance under Section 8 … All Section 8 contracts expiring in FY 2013 will be renewed if eligible under current program rules and will receive full twelve month funding. (a) Notice required. E-mail: info@housingonline.com, © 2021 National Housing & Rehabilitation Association ® All Rights Reserved Privacy Policy, Sponsorship and Advertising Opportunities, Preservation Through Energy Efficiency Initiative, Council for Energy Friendly Affordable Housing, National Council of Housing Market Analysts. Washington, DC 20036 1400 16th Street, NW, Suite 420 The section now reads that HUD's regulations apply to the Housing Assistance Payment (HAP) contract, unless the contract specifies otherwise. Following amendments in 1999, n Sectio 524(a)(1) of MAHRA now provides that: stream $1 million minimum loan size. Identifies “exception” projects, which are exempted from or ineligible for Recap and as such, generally exempt from having to conduct rent comparability studies (RCS) and lower rents to comparable market rents. Previously, HUD needed to contract with a third party appraiser. amount of the housing assistance payment will be effective on the date stated in a written notice by EDEN to the owner. The Fannie Mae Affordable Housing Loan program provides permanent, long-term fixed rate debt for financing or refinancing for stabilized multifamily housing properties with regulatory based rent or income restrictions and LIHTC properties with expiring tax credits. Comment: Three commenters wanted all preservation projects with expiring contracts treated as “exception projects,” with rents determined to permit commitments in the Plan of Action to be honored. Instructions. Provides instructions for renewing a contract under the Mark-Up-To-Market (MUTM) option. For example, Portfolio Reengineering Demonstration projects are required to accept Section 8 contracts offered by the Department, and as such, they may not opt-out if HUD offers to renew. A multifamily housing project is a property consisting of more than 4 dwelling units that is covered in whole of in part by a contract for a project-based assistance under Section 8 … According to analysis from Reno & Cavanaugh, one of the major changes in the new guide is that HUD will now rely upon the owner’s rent comparability study for Mark up to Market renewal applications, as long as rents do not exceed 140% of Median Gross Rent by Zip Code tabulation area. Provides guidance for renewing Preservation contracts according to the approved Plan of Action (POA). <> The Second notice to residents reminding the residents of the owner's intent not to renew their expiring HAP contracts. 3. The Guide incorporates procedures from previous Section 8 expiring contract Housing Notices, along with a number of changes. HUD enters into Housing Assistance Payment (HAP) contracts with owners . %���� <>/ExtGState<>/Font<>/ProcSet[/PDF/Text/ImageB/ImageC/ImageI] >>/MediaBox[ 0 0 612 792] /Contents 4 0 R/Group<>/Tabs/S/StructParents 0>>
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