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Frequently Asked Questions for Section 8 Contract Administration: Contract
Renewal/Rent Increases
Other Questions
Reviews
Real Estate Assessment Center
HUD/WHEDA Responsibilities
My contract is expiring. What
do I need to do to renew my contract? 
One year prior to expiration, you need to notify all current residents
that the contract will be expiring and that you intend to renew or do
not intend to renew. A sample letter can be found in Chapter 11 of the
Section
8 Renewal Policy Guidebook.
You must choose one of the six options as described on the HUD Contract
Renewal Request Form. Your selection must be submitted 120 days prior to the expiration of your contract.
I would like to request a rent increase.
What is required, and which forms must be completed?
Rent increases must be requested in writing. Increase types are: budget based, the Annual Adjustment Factor (AAF), or the Operating Cost Adjustment Factor (OCAF). Submission requirements are:
- Budget Based Increase
- Budget Worksheet HUD Form 92547A to WHEDA, prepared in accordance with Chapter 7 of the HUD 4350.1 Manual (or Rural approved budget)
- Line-by-line explanation of any increase over 5% (unless less than
$500)
- Verified debt service
- Copy of the tenant notification letter
- Certification of compliance with tenant comment procedures (HUD 4350.1 Manual, Ch 7 App 2). Sample Appendix 2
- Certification as to Owner's Purchase Practices and Reasonableness of Expenses (HUD 4350.1 Manual, Ch 7 App 3)
- Utility Analysis (if project has utilities)
- Attachment 5 - Projects Preparing a Budget-Based Rent Increase
- AAF Increase
- Unit turnover data for the previous 12 months. Sample Unit Turnover Report
- Copy of the tenant notification letter
- Certification of compliance with tenant comment procedures (HUD 4350.1 Manual, Ch 7 App 2). Sample Appendix 2
- Utility Analysis (if project has a utility allowance)
- For rents above Fair Market Rent, submit a Rent Comparability Study; rent comparability studies are to be completed in compliance with HUD Section 8 Renewal Guidebook chapter 9. If a rent comparability study is less than 5 years, the study may be updated for the submission.
- OCAF Increase
- OCAF Worksheet
- Verified debt service
- Copy of the tenant notification letter
- Certification of compliance with tenant comment procedures (HUD 4350.1 Manual, Ch 7 App 2). Sample Appendix 2
- Utility Analysis (if project has a utility allowance)
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