Southwest Housing Compliance Corporation

Option 2: Request Renewal of Contracts with Current Rents At Or Below Comparable Market Rents

Option Two is for owners who request a renewal of their Section 8 contract where the RCS indicates that the contract's current rents are at or below comparable market rents, but who are not applying for Mark-Up-To-Market.

Owners of exception projects have a choice of having their initial renewal processed under Option 1, Option 2, or Option 4. However, if an owner of an exception project elects to initially renew the contract under Option 1 or Option 2, the owner may not switch back to Option 4 at a later date.

Eligibility Requirements

  1. Contract Renewal Request Form (HUD Form 9624), Owner's Option Checklist, and OCAF Worksheet (HUD Form 9265).
  2. Acceptable Rent Comparability Study (RCS)

Rent Adjustments

  1. At initial renewal
    1. Shall be adjusted by
      1. An Operating Cost Adjustment Factor (OCAF)
      2. At Owner's request, by budget-based increase.
    2. Initial renewal rents may not exceed the comparable market rents.
  2. At subsequent renewal
    1. Shall be adjusted by
      1. An Operating Cost Adjustment Factor (OCAF)
      2. At Owner's request by budget based increase.
    2. Subsequent renewals may not exceed OCAF adjusted RCS.