Frequently Asked Questions

How do I know which Option to choose?

The Contract Options Q & A Guide can help you narrow down your options, and then you can find more detail about the Options in the Section 8 Renewal Policy from HUD (pdf).

What is the currently published OCAF?

OCAF stands for Operating Cost Adjustment Factor. Each year, HUD publishes the OCAF for the year. They will be applicable in your OCAF Adjustment Worksheets and the Renewal Worksheet for Option 2 and Option 4.

	TEXAS	ARKANSAS
2010 (effective 2/11/10)	1.055	1.053
2009	1.034	1.037
2008	1.051	1.068
2007	1.058	1.041
2006	1.041	1.036
2005	1.045	1.029
2004	1.032	1.037
2003	1.035
2002	1.047
2001	1.0279

What is included in Debt Service for the purposes of the OCAF Worksheet?

The debt service is made up of the property's annual payment to Principal, Interest and the Mortgage Insurance Premium (if applicable) for the property's current loan. If your property's original loan is a 236 loan or has been decoupled, be sure to subtract the Interest Reduction Payment from the total debt service.

If I am still in a 20 or 30 year contract (pre-MAHRA), how are my rents adjusted? What if the annual adjustment is not enough?

Each HAP contract dictates the terms of the annual adjustments. Your options will be the Annual Adjustment Factor (AAF) or a Budget-Based adjustment. If the AAF is not enough (often it is only 1% or 2%), you have the option to request a Special adjustment. This adjustment covers increases in utilities, taxes and insurance. Guidance for requesting a Special adjustment is found in HUD Handbook 4350.1, Chapter 34, Section 3.

I know my contract allows Budget-Based adjustments. What do I need to submit to SHCC?

Guidance for submitting a budget-based request can be found in HUD Handbook 4350.1, Chapter 7. We have put together a checklist to assist you in compiling the information.

HUD Handbook 4350.1 Chapter 7 says I need to explain all increases over 5% when I submit a Budget Based rent increase request. Does that apply to increases from last fiscal year's audited figures to the proposed amounts or from the this year's actuals to the proposed amounts?

It applies to both. You should explain why the increase occurred (e.g. higher rates, new staff, etc.) and provide any back up documentation that you have (e.g. letters from utility companies, insurance providers, salary schedules, etc.)

What is required for a Utility Allowance (UA) Analysis?

If your property has a Utility Allowance, you are required to review your UA amounts annually and submit a full Utility Allowance Analysis to SHCC anytime there has been a change of greater than 10%. In addition, SHCC requires that a full analysis be submitted to our office every three years, and we have created a Utility Allowance Analysis Owner Certification form to help you with the analysis. When you submit a full analysis, complete all three bullet points at the top of the form and a recommended UA adjustment. However, if you have submitted a full UA analysis in the last two years, and you have determined a change of less than 10%, you may simply certify to that at the bottom of the form.

If you are submitting a full analysis to SHCC, you may choose to have a professional company complete your UA Analysis, or you may submit utility samples. Usually, utility companies require a tenant waiver in order to release billing information, so it is important to begin gathering data well before the submission is due to avoid processing delays.

If all else fails, contact your Financial Analyst.