(Section 2-10) 12. If necessary, the CMS will contact you for more information.Generally, contract terms shall be for one year to five years, subject to appropriations. Contracts must be at least 1-year, while Mark Up to Market (MUTM) contracts must be at least 5 yearsWhen a HAP contract has expired, an owner generally has six different options:They agree to a 20-year contract renewal under one of the first 4 options stated earlier in the articleA study remains valid of 5 years after certification by the owner’s appraiserBefore the end of the 5-year period, HUD account executives are required to let owners know that a new RCS is required, as the old one will expire (new RCS is needed for contract renewals and rent adjustments)In certain situations, for-profit HUD Section 8 owners may receive surplus cash distributions. Chapter Three of the Section 8 Renewal Policy has complete guidance regarding Options 1-A and 1-B. Preservation Exhibit is not required for a contract with less than six months remaining.Before getting into more of the details of the Section 8 program, it’s important that readers understand a few terms, including:In 1997, the United States Congress enacted The Multifamily Assisted Housing Reform and Affordability Act (MAHRA), which stated that HUD-subsidized rents need to be similar to market rents in a project’s general area. Even if the analysis results in the UA remaining at current, you must submit your analysis to be reviewed.Click on the links below to find out more about each method and the submission requirements:Yes. Discusses early contract termination, rent comparability studies and which contracts to use by chosen option.
Click on each option to find out more information.© Copyright 2018 Navigate Housing. If your contract is expiring, please see our Contract Renewal Options above to determine your renewal option for the upcoming year. You should explain why the increase occurred (e.g.
This can include Articles of Incorporation, Partnership Agreement, Management Certification, HAP Assignment, etc. )Navigate Affordable Housing Partners is a nonprofit that actively works to enhance all aspects of the housing industry to ensure that people have access to quality, livable housing choices. Angie currently serves as Contract Renewal Manager, where she oversees all duties and tasks associated with Section 8 HAP contract renewals and rent adjustments. Contract Renewal. Renewals may not exceed the length of the Use Agreement, but the Use Agreement itself may be extended.Contacts that have previously undergone Lite contract renewal; and now are to undergo full Mark to Market (MTM) debt restructuringContract administrators (CAs) can renew for 5-year periods, for longer periods, an account executive (AEs) must be involved in the processWatch List contracts that meet certain requirements A Section 8 owner wants to renew the contract under MUTM (Mark Up to Market), Option 1If project owner’s contract contains a comparability adjustment within the 5-year term and the project is exempt from Recap restructuring.For non-MAHRA Contracts: (older contracts that have not yet been renewed), landlords are permitted to terminate their contract early and renew them under MAHRA if:They agree to the HUD Preservation Exhibit (explained in HUD Notice 2013-17), which means they are obligated to renew their MAHARA HAP contract after the initial 20-year period for a period equal to or greater than the term of their original terminated contract.
The main benefit is that you do not have to submit a Rent Comparability Study (RCS) at contract renenwal, as you do with Options 1 and 2. Operating Cost Adjustment Factor (OCAF) Rent Adjustments. Rate Lock through MAS will be temporarily unavailable during current internet connection troubles, please check back later.Beginning July 1, 2017, residential landlords are required to provide a written bed bug disclosure to prospective tenants with the general information about bed bug identification, behavior, biology, the importance of prompt written reporting of suspected infestation to the landlord, and the importance of prevention and treatment of infestation.No later than January 1, 2018, a written bed bug disclosure must be given to ALL existing tenants. Such language must be added to Part A of the HAP contract.