Option Five – Renewal of Portfolio Reengineering Demonstration or Preservation Projects
This option is for projects that entered into long-term Use Agreements under their respective programs. Owners can receive a multi-year contract not to exceed the lesser of 20 years or the remaining term of the recorded Use Agreement.
· Preservation Projects primarily consist of Section 236 and 221d3 BMIR projects whose Owners entered into long-term Use Agreements with HUD under the Preservation Program.
· Portfolio Re-engineering Demonstration (“Demo”) Program Project is a project that completed the Demo Program, as evidenced by a recorded Demo Program Use Agreement. If the Owner entered into the Demo Program but did not execute and record a Demo Program Use Agreement, it is not eligible for renewal under Option Five.
For complete guidance and information regarding Option Five please read Chapter 7 of the Section 8 Renewal Policy guidebook.
· Budget Based Rent Adjustment (if applicable)
· Utility Allowance Analysis (if applicable)