If I am still in a 20 or 30 year contract (pre-MAHRA), how are my rents adjusted? What if the annual adjustment is not enough?

Haca Mis Contract Renewals

Each HAP contract dictates the terms of the annual adjustments. Your options will be the Annual Adjustment Factor (AAF) or a Budget-Based adjustment. If the AAF is not enough (often it is only 1% or 2%), you have the option to request a Special adjustment. This adjustment covers increases in utilities, taxes and insurance. Guidance for requesting a Special adjustment is found in HUD Handbook 4350.1, Chapter 34, Section 3.

Please note that pre-MAHRA contracts are now eligible to request an early termination of their contract and renewal under MAHRA if the owner agrees to the following:

  • Renew the Section 8 contract for 20 years under Options One, Two, Three or Four and
  • A Preservation Agreement for a term equal to the length of term remaining on the original HAP contract
  • Sign the HUD-93184 “Rider to Original Section 8 Housing Assistance Payments Contract”