Accurate and timely processing of contract renewal requests is of the utmost importance in order to avoid delays in subsidy payments. SHCC works with property owners throughout the renewal process to ensure that their request is prepared timely and in accordance with HUD guidelines. The renewal request is due to SHCC 120 days before the contract expires. To help you remember to prepare your submission, we will send a reminder letter two months prior to the due date. We encourage you to start preparing as soon as you receive SHCC’s reminder letter as this can be a time consuming process.
There are six renewal options from which to choose:
- Option 1: Mark-Up-To-Market
- Option 2: Contract Renewals for Other Projects with Current Rents At or Below Comparable Market Rents
- Option 3: Referral to Recap
- Option 4: Renewal of Projects Exempt from or not Eligible for Debt-Restructuring
- Option 5: Renewal of Portfolio Reengineering Demonstration or Preservation Contracts
- Option 6: Opt-Outs
Choosing from these options can be daunting, especially if you have not done it before. Below are several tools to assist you with this process.
- Section 8 Renewal Policy (PDF): Published June 2017, official HUD guidance on Section 8 HAP Contract Renewals
- Q & A Module: If you are unsure of which option to choose, our Q&A module can help you select the right one for your contract.
- Option Information: Learn more about the 6 renewal options
- Forms: Find the forms you need to submit your request.
- Rent Comparability Studies (RCS): Learn more about selecting an appraiser and reviewing and submitting an RCS.
Don’t know which renewal option to choose? Contact your SHCC Financial Analyst.
Twelve months before your contract expires, you must notify your residents of your intention to renew or not renew the contract. See sample Notices of Intent:
Depending on which renewal option you choose, you may be eligible to submit a Rent Adjustment request. Also, if your property has a Utility Allowance, you will be required to perform a Utility Allowance Analysis with each request for a rent adjustment.