Housing Partners
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, 2009. 5.5% for Minnesota or 1.055 for the OCAF worksheet calculation. Also available, the OCAF factors archive.
Current Year Fair Market Rents Preamble
Current Year Fair Market Rents (FMRs) - Effective October 1, 2008
Fair Market Rents (FMRs) Technical Correction - Effective October 1, 2008
Previous Year Fair Market Rents (FMRs) - Effective October 1, 2007
Annual Adjustment Factor (AAF) - Effective January 22, 2008
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
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
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
- Owner's One-year Notice of Intention not to Renew the AAP Contract - Under Construction
- Contract Renewal Request Form - HUD form 9624 for initial and subsequent contract renewals. (Instructions)
- Mark-Up-To-Market Initial Eligibility Worksheet
- Operating Cost Adjustment Factor (OCAF) Worksheet (.pdf) HUD form 9625
- Operating Cost Adjustment Factor (OCAF) Worksheet (.xls) HUD Form 9625 (Instructions)
- Owner's Notice to Tenants of Request to Increase Rents - sample form (pdf fillable form, (Learn more regarding pdf fillable forms)
- Distribution of Owner's Notice to Increase Rents - Sample cover letter to describe how the notice to tenants was distributed.
- Owner's Certification as to Compliance with Tenant Comment Procedures - Sample form
- Utility Allowance Analysis Certification - Sample form
- HUD Budget Worksheet 92547A
- Owner's Request to Increase the Monthly Reserves - Sample form
- Owner's Certification to Reasonable Purchases and Practices - Sample form
- HUD Rent Schedule 92458
- Attachment 5 - For active Rural Development project Option 4 contract renewals
- RCS Owner's Certification
- 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.
Handbooks & Notices
HUD's Section 8 Renewal Guidebook - For easy internal navigation, click "Bookmarks" tab on left of screen. Click "+" for expanded options.
FAQ's concerning this Guidebook
Section 8 Renewal Policy Guidebook Page Changes - May 5, 2006
Section 8 Renewal Policy Guidebook Page Changes - December 12, 2006 (Effective April 19, 2007)
HUD Handbook 4350.1 REV-1, Chapter 7 - Processing budgeted rent increases
Annual Adjustment Factor Notice - H2002-10 - AAF procedures including Part 1 and Part 2 worksheets
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