Eligible for Option 2

You may be eligible for the following option:

Option 2: Request renewal of other contracts with current rents at or below comparable market rents.

Option 2 should be considered by owners who want to renew their contract and the rent comparability study (RCS) indicates that the contract’s current rents are equal to or less than comparable market rents. The initial renewal of the current rents under this option will be adjusted by an operating cost adjustment factor (OCAF) or at the owner’s request, by a budget-based increase. The initial renewal rents may not exceed the comparable market rents.

At subsequent renewal the current rents may be adjusted by an OCAF, or at the owner’s request, a budget based increase, as long as the resulting rents are below the OCAF-adjusted RCS.

Please refer to HUD’s Section 8 Renewal Policy Handbook or view Option 2 for more information and/or to determine project eligibility.