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Contract & Funding Renewals,
Rent Adjustments

Properties that have not renewed their HAP contract since 1997 are Pre-MAHRA (Multifamily Assisted Housing Reform and Affordability Act), and properties that have renewed their HAP contract since 1997 are MAHRA - Contact your Housing Assistance payment Contract Staff Member with questions.

PRE-MAHRA
HAP Contracts that have NOT yet renewed under HUD's 1997 MAHRA that are eligible for the Annual Rent Adjustment (AAF) may be eligible for a special rent adjustment.

Properties such 223 F,221(d)(3) if there are S8 units, Non-Insured Rural Development, and other Noninsured Properties are traditionally eligible for the annual rent adjustment (AAF). In such cases, a Special Rent Adjustment is considered if the property has experienced an increase in property taxes, insurance and/or utilities

MAHRA
HAP contracts that have renewed under HUD's 1997 Multifamily Assisted Housing Reform and Affordability Act (MAHRA) are not eligible for a special rent adjustment.

Please note: Minnesota Housing does not intend this to be an all-inclusive list of the federal requirements. Please review the HUD Handbook Chapter 34 to gain a full understanding of all requirements.

Adjustment Factors & Fair Market Rents
Published Operating Cost Adjustment Factor (OCAF) - Effective February 11, 2010. 5.3% for Minnesota or 1.053 for the OCAF worksheet calculation. Also available, the OCAF factors archive.
Current Year Fair Marker Rents (FMRs) - Effective October 1, 2009
Previous Year Fair Market Rents (FMRs) - Effective October 1, 2008
Annual Adjustment Factor (AAF) - Effective January 12, 2009

Overview of the HAP Contract Renewal Options & Submission Requirements
Option 1 (Mark-up-to-Market)
Option Two (II) 
Option Three (VI) 
Option Four (IV) 
Option Five (V) 
Option Six (VI)

Renewal Resources

Contract Renewals
Contract Renewal Guidance - Under Construction
Contract Renewal Checklist
Contract Renewal Timeline

Funding Renewals
Funding Renewal Guidance - Under Construction
Funding Renewal Checklist
Funding Renewal Timeline

Rent Comparability Study
Rent Comparability Study Checklist
Rent Comparability Grid HUD 92273-s8

Budget Based Rent Adjustments
Eligible Properties - Find out what type of property is eligible for a budget based rent adjustment.
Budget Based Rent Adjustment Checklist - Checklist items
Budget-Based Rent Adjustment Timeline
Submission Requirement Checklist and Deadlines - Outlines the paperwork requirements for a budget based rent adjustment.

Annual Adjustment Factor Rent Adjustments
Eligible Properties - Find out what type of property is eligible for an AAF
Annual Adjustment Factor Rent Adjustment Checklist - Under Construction
Annual Adjustment Factor Timeline 
Submission Requirements and Deadlines - Outlines the paperwork requirements for an AAF rent adjustment
Annual Adjustment Factor (AAF) - Effective January 12, 2009

Special Rent Adjustments
Eligible Properties - Find out what type of property is eligible for a special rent adjustment.
Submission Requirements and Deadlines - Outlines the paperwork requirements for a special rent adjustment.

Operating Cost Adjustment Factor Rent Adjustments
Operating Cost Adjustment Factor Checklist - Under Construction

Tenant Paid Utility Adjustments
Tenant Paid Utility Analysis Policy - Minnesota Housing's guidance on tenant paid utility analysis requirements.

Rent Increase Notice to Tenants
Rent Increase Notice to Tenant Guidance
Rent increase Notice to Tenants Timeline - Under Construction

Forms and Sample Letters

• Owner's One-Year Notice of Intention to Renew the HAP Contract, Appendix 11 - Sample form
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• Owner's One-year Notice of Intention not to Renew the AAP Contract - Under Construction
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• Contract Renewal Request Form - HUD form 9624 for initial and subsequent contract renewals. (Instructions)
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• Mark-Up-To-Market Initial Eligibility Worksheet
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• Operating Cost Adjustment Factor (OCAF) Worksheet - HUD 9625 
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• Owner's Notice to Tenants of Request to Increase Rents - sample form (pdf fillable form, (Learn more regarding pdf fillable forms)
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• Distribution of Owner's Notice to Increase Rents - Sample cover letter to describe how the notice to tenants was distributed.
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• Owner's Certification as to Compliance with Tenant Comment Procedures - Sample form
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• Utility Allowance Analysis Certification - Sample form
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• HUD Budget Worksheet - HUD 92547-A
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• Owner's Request to Increase the Monthly Reserves HUD 9250
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• Owner's Certification to Reasonable Purchases and Practices - Sample form
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• HUD Rent Schedule 92458
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• Attachment 5 - For for-profit owners
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• RCS Owner's Certification
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• Request for HAP Contract Greater than 5 years - For owners who wish to request a HAP contract greater than five years.  Three original copies must be submitted.
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• AAF Worksheet - HUD 92273-A, HUD 92273-B, HUD 92273-C

Handbooks & Notices
HUD's Section 8 Renewal Guidebook
FAQ's concerning this Guidebook
HUD Handbook 4350.1 REV-1, Chapter 7 - Processing budgeted rent increases
Annual Adjustment Factor Notice - H2002-10 - AAF 92273-A, 92273-B, 92273-C

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