Section 8 Renewal Guide Changes Posted for Comment

HUD has posted the proposed revisions to the 226-page Section 8 Renewal Guide, under What’s New on the right side of the Section 8 Contracts webpage. Click here to visit the webpage.

Like the 4350.3, changes are set off with asterisks.  The 8-page Transmittal lists all of the changes.

Highlights:

• A non-MAHRA contract can be terminated early if the owner agrees to renew under Options One, Two or Three for 20 years plus the remaining balance on the terminated contract
• For-profit owners can access additional distributions only during the term of the renewal contract under Option One
• Owners of Exception projects can submit zero budget-based rent adjustments without an RCS
• Added requirements when RCS rents exceed a certain level
• Clarifies that for-profit owners can use Chapter 15 and renew under Option Two for purposes of Capital Repairs, but they must use Option One and Chapter 15 if seeking a Transfer or a Transfer with Capital Repairs.  In the past, they couldn’t participate without a waiver
• Added note after Section 15-6.D.1 that allows “after rehab” rents to be effective at closing under certain circumstances
• Added that a HUD project manager or a CA won’t lower comparable market rents in the RCS to reflect any use restrictions
• Added a new Chapter 16, “Old Regulation” State Housing Finance Agency Projects, that describes owner options when they pre-pay a state agency- financed loan on a project with an “old regulation’ Section 8 contract

The document is open for public comment.  If you want to send your input, submit your comments by April 30, 2014 to: Section8RenewalGuide@hud.gov or via mail to: Department of Housing and Urban Development, Attention: Section 8 Renewal Guide, 451 7th Street, SW., Room 6134, Washington, DC 20410 –0500. Be sure your comments specifically identify the section number, page number and paragraph number to which they refer.

Reference: RHIIP Listserv Posting #311