Draft Policy: Section 8 Renewal Guide draft changes posted to HUD Drafting Table
On December 21, 2016 Multifamily Housing posted draft changes to the Section 8 Renewal Policy Guide on the Multifamily drafting table for feedback.
Many of the changes are administrative but a few highlights are below:
- Clarify that if an owner of a project with an existing Preservation Exhibit wishes to terminate the contract and renew early, the new Preservation Exhibit will replace the existing Preservation Exhibit and include only the number of years remaining on the contract being terminated. (See Section 2-4.A.2.a)
- Clarify that an owner who wishes to renew under Option Three can renew for the lesser of 20 years or the remaining term of the use agreement, whichever is less. (See Section 2-4.B.3.e.)
- Clarify that an owner who wishes to terminate an existing Option Four contract and renew the contract under Option Four, is allowed to do so. (See Section 2-4.B.4)
- Clarify that the revised conditions for receiving increased distributions listed in Section 2-12.E apply to all projects, not just those renewed after August 2015. (See Note after Section 2-12.E.)
- Clarify that nonprofits if they meeting one of the three discretionary criteria can participate in Option One B. (See Note after Section 3-6.A.)
- Clarify that projects currently renewed under Option Four in addition to those currently renewed under Option Two can reduce rents to market in order to qualify for renewal under Option Two. (See Note after Section 4-1)
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