The Section 8 Renewal Policy Guide provides guidance for renewing expiring Section 8 project based contracts. These instructions apply to all Contract Administrators who are responsible for overseeing contract renewals. According to this guide, “owners are required to submit documentation to HUD or the CA at least 120 days prior to the expiration of the contract.” Owner’s must also notify their tenants no later than one-year prior to their contract expiration date and send a copy of that letter to Kentucky Housing.
A contract can be an initial renewal, subsequent or multi-year contract. The type of renewal determines what documentation is required to be submitted to Kentucky Housing. Additionally, it determines what type of forms must be executed.
Initial Renewals
The first renewal of a project’s contract or stage that is processed under the rules established by Multifamily Assisted Housing Reform and Affordability Act (MAHRA) is considered the initial renewal of the contract.
Subsequent Renewals
A subsequent renewal is the renewal of a contract at the end of its initial or subsequent term under MAHRA.
Multi-Year Contract or an “Amend Rent”
This refers to contracts that have more than a one-year term. We currently have contracts that run from a one-year to a five-year term. We also have some that have 20-year terms; these are only those that have been through restructuring.
Contract Renewal Request Form
The owner is required to complete the Contract Renewal Request Form (HUD-9624) for all initial and subsequent contract renewals. The information contained on this form is basic information about the property/contract, such as Property Name, Address, and Project No., etc.
The second page of the worksheets has a list of options one through six. The owner must select one of these options and sign/date the form at the bottom and then complete the additional pages that are specific to the option that he/she has chosen.
All information is reviewed to ensure accuracy and to ensure that the owner has signed the required pages and is eligible for the option chosen. If they are not eligible for the option chosen, they will be contacted and will be required to resubmit new worksheets.
Form Number: HUD-9625 – OCAF Rent Adjustment Worksheet
Form Number: HUD-9624 – Contract Renewal Request Form
NEW OCAF Rate effective February 11, 2009 is 1.049