Option 2 - Contract Renewals for Other Projects with Current Rents At or Below Comparable Market Rents
This option is for properties with Section 8 contract rents at or below the comparable market rents determined by a 3rd party Rent Comparability Study (RCS). The Section 8 contract rents can be adjusted by either an OCAF rent adjustment or a budget based rent adjustment. The new gross rent potential should not exceed the comparable market rent potential determined by the RCS.
Owners with contract rents that exceed comparable market rents, but are exempt from Office of Affordable Housing Preservation (OAHP) restructuring, may also renew under this option, however, their Section 8 rents will be reduced to the market rents determined by the RCS.
A Property that meets either one of the following criteria is eligible to renew under Option Two
· The Section 8 contract rents are at or below comparable market rents determined by the RCS.
· The Section 8 contract rent exceed RCS comparable market rents, but the project is exempt from OAHP restructuring and the Owner is willing to cut the rents to the comparable market rents.
For complete guidance and information regarding Option Two please read Chapter 4 of the Section 8 Renewal Policy guidebook.
· Worksheet for Option Two
· Utility Allowance Analysis (if applicable)
· Budget Based Rent Adjustment (if applicable)