Option 3: Referral to Recap

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.

Eligibility Requirements:

  • FHA-insured loan
  • Current Rents are above market rents.

Submission Requirements

Option 3A

Option 3B

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.

HUD Guidance

Chapter Five of the Section 8 Renewal Policy has complete guidance regarding Option 3.