Southwest Housing Compliance Corporation

Option 5: Request Renewal of Portfolio Reengineering Demonstration or Preservation Contract

You have two options within Option 5

A.Preservation Projects

Owners who entered into a long term use agreement with HUD as part of the Preservation Program must renew under Option 5. The rent adjustment method is determined by the Plan of Action that was approved by HUD as part of the Preservation process.

These contracts can be renewed for up to the lesser of 20 years or the remaining term of the use agreement.

B. Demonstration Projects

Initial Renewal: HUD is no longer doing initial renewals under the Portfolio Reengineering Demonstration Program.

Rent Adjustments: OCAF only, years two through five.

At the end of each 5 year period the owner must obtain an RCS to ensure that the rents are not above comparable rents. The owner will be eligible to renew under Option 1 or 2. If necessary the rents will be reduced to comparable rents.