Is your property an Exception Project? An Exception Project is defined as one of the following:
- 202/8 or 515/8
- Has State or Local Government Financing
- Not subject to a HUD-Held or HUD-insured mortgage
Eligible for Option 4
You may be eligible for Option 4: Request renewal of the Section 8 contract for projects exempted from OAHP
Certain project types are exempt from OAHP and are not eligible for Option 3 even though their contract rents may exceed market rents. Owners who have projects that are exempt from OAHP and have contract rents that exceed market rents should consider this option. Eligible projects that wish to renew under this option will renew their rents at the lesser of the projects current rents adjusted by an operating cost adjustment factor (OCAF) or the budget based rent as described in HUD Handbook 4350.1 chapter 7 and attachment 5.
No matter what renewal option you select, if it is determined that contract rents exceed comparable market rents and the project is eligible for OAHP, it will be forwarded to OAHP for processing.