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   Option 4: Renewal of Projects Exempted from OAHP     

Reference: Section 8 Renewal Policy Guide - Chapter 6

Download Printable Option 4 checklist

Required Documents

• One-Year Notification Letter Section 8 Renewal Policy Guide - Appendix 11-2
  

• Contract Renewal Request Form HUD 9624 (instructions)
• Renewal Worksheet for Option 4 Form HUD 9624
• OCAF Rent Adjustment Paperwork
• Budget-Based Rent Adjustment Paperwork  

Note: The rents will be renewed at the lesser of the OCAF or Budget-Based rent adjustment methods.

                           Multi-Year Rent Adjustments                            

OCAF Rent Adjustment
Required Documents

• OCAF Rent Adjustment Worksheet Form HUD 9625 - Attachment 3B    (Form Instructions )
  

• Amortization Schedule  
• Rent Schedule Form HUD 92458

Budget Based Rent Adjustment
Required Documents

• Budget Worksheet Form HUD 92547 A
  

• A cover letter that briefly does all of the following:

- Summarizes the reasons why a rent increase is needed and the date the increase will be effective. Describe the project's physical condition and any  improvements that have been budgeted for. The letter may refer to the reasons stated in the Notice or elaborate on those reasons. (The main reasons stated in the letter must be the same as the main reasons stated in the Notice to Tenants, if the project  was subject to the tenant comment procedures in Section 7-2 of the 4350.1)
- Identifies any proposed change in services, equipment or charges and the reasons for the change.

• A brief statement explaining the basis for any increase in the expense line items on the budget work sheet. Generally, if an increase  amounts to 5 percent or more, it must be documented.
  

-Chapter7 of 4350.1  - Appendix 4(b)  provides a sample owner explanation of budget items.

• Where applicable, a copy of the Notice to Tenants annotated to show where and how the Notice was distributed (e.g., posted, mailed, hand  carried).
  

-Section 7-2, Chapter 7 of 4350.1 for applicability.

-Chapter 7 of 4350.1 - Appendix 1  for an example notice.

• Where applicable, a copy of the Owner's Certification As To Compliance With Tenant Comment Procedures In 24 CFR 245 (Formerly In 24 CFR  401)
  

-Chapter 7 of 4350.1 - Appendix 2

• Owner's Certification Regarding Purchasing Practices and Reasonableness of Expenses.
  

-Chapter 7 of 4350.1 - Appendix 3

• A status report on the project's implementation of its current Energy Conservation Plan (See Chapter 12). This may be: (1) a narrative  report coded to facilitate references to the plan; or (2) copy of the plan annotated to show the current status of all items that were scheduled to be completed within 60 days after the rent increase is proposed to be effective. THIS APPLIES ONLY TO  SECTION 236 AND BMIR PROJECTS, PROJECTS THAT RECEIVE RENT SUPPLEMENT ASSISTANCE, AND PROJECTS THAT CONVERTED FROM RENT SUPPLEMENT TO SECTION 8. This requirement is to assure compliance with Section 329(c) of the Housing and Community Development Amendments  of 1981.
  

• A signed request for a change in the Reserve for Replacement deposits if such a change is contemplated as part of the rent adjustment request.
  

-Chapter 7 of 4350.1 - Appendix 6

• If a change in the Reserve for Replacement deposits is contemplated as part of the rent adjustment request a 5-year capital needs assessment  plan.
  

• Utility Allowance Analysis Paperwork (If applicable) Utility Allowance Adjustment Information
  

-Note: A utility allowance analysis is required when submitting a budget-based  rent adjustment. If you are submitting a budget-based rent adjustment request and according to your utility allowance analysis the utility allowances are not changing by 10% or more, then you may submit a signed statement in lieu of the analysis certifying  that you have conducted a Utility Allowance Analysis and you are not recommending a change to the utility allowances based on the analysis.

• Rent Schedule Form HUD 92458