Option 3 is divided into Option 3-A (LITE): Renewal of the contract without restructuring, with rents marked down to market; and Option 3-B (FULL): A mortgage or rent restructuring and contract renewal with the rents marked down to market.
- FHA-insured loan
- Current Rents are above market rents.
- Contract Renewal Request Form (HUD Form 9624)
- A Rent Comparability Study (RCS)
- A physical inspection report
- Copy of the most recent audited financial statements
Regardless of your option selection, SHCC will refer your contract to Recap for restructuring if the contract rents exceed comparable market rents and if the contract is eligible for referral.
Chapter Five of the Section 8 Renewal Policy has complete guidance regarding Option 3.