Eligible for Option 3
You may be eligible for Option 3: Referral to Recap
This option is for projects that currently have contract rents that exceed comparable market rents and the project is not identified as an “exception project”. If the project is eligible, and you select this option, you will be able to request either:
A reduction in Section 8 contract rents to comparable market rents without restructuring the mortgage (Lite)
To restructure the mortgage and reduce the Section 8 contract rents to comparable market rents (Full).
Please refer to HUD’s Section 8 Renewal Policy Handbook or view Option 3 for more information and/or to determine project eligibility.
No matter what renewal option you select, if it is determined that contract rents exceed comparable market rents and the project is eligible for Recap, it will be forwarded to Recap for processing.