Southwest Housing Compliance Corporation

Option 4: Request for Renewal for Projects Exempted From OMHAR

  1. Certain project types are not eligible for OHMAR even though the contract rents may exceed market. Projects without FHA-insured loans are exempt, as are certain FHA-insured properties.

    Specifically, the following projects are identified by the statute as "exception properties":
    1. Project(s) with primary financing or mortgage insurance that were provided by a unit of state or local government and not insured under the National Housing Act.
    2. Projects financed under section 202 of the Housing Act of 1959 or section 515 of the housing act of 1949 (includes 202/8, 515/8: does not include 202 and 811 Capitol Advance projects, which do not have section 8 contracts)
    3. Projects that have an expiring contract 1937 Act pursuant to section 441 or the Stewart B. McKinney Homeless Assistance Act (SRO Mod Rehab)
    4. Projects that do not qualify as projects pursuant to 512 of MAHRA. Such as:
      1. A project that is not subject to a HUD-held or insured mortgage
      2. A project that has FHA mortgage insurance or is HUD-held with rents at or below comparable market rate.
  2. Owners of "exception projects" have a choice of having their initial renewal processed under Option One, Two or Four.

Note: For an owner of an FHA-insured or HUD-held project to claim eligibility under 4b, they must obtain an RCS.