Operating Cost Adjustment Factor (OCAF) rent increases are based on the Operating Cost Adjustment Factors released by HUD annually in the Federal Register. Guidance for OCAF Adjustment requests can be found in the Section 8 Renewal Policy.
See our Frequently Asked Questions page for the most current OCAF.
Eligibility
Eligibility is determined by your HAP contract. If the Rent Adjustment section of your contract or plan of action refers to Operating Cost Adjustment Factor (OCAF) adjustments, you are eligible to submit an OCAF request. Generally, properties that have renewed under MAHRA are eligible to submit OCAF rent adjustment requests.
Auto OCAF
Some contracts are eligible for an Auto OCAF. The Auto OCAF Rent Increase process eliminates the requirement for the Owner to calculate its own OCAF rent increase and submit an OCAF Worksheet and a cover letter to SHCC during Amend Rents years to obtain an OCAF rent increase. Contract renewals and certain contracts that are not eligible to receive an automatic OCAF annually will not be a part of this automated process. Renewal and rent increase packages for those properties should be submitted to us as in the past. To find out if your property is eligible for the Auto OCAF process, please contact us.
If your property is eligible for an Auto OCAF rent increase, at approximately 150 days prior to the contract anniversary date, we will send you a letter advising you of your property’s new OCAF increased rents, a new Exhibit A, and a request that you certify the accuracy of the debt service and non-Section 8 rent potential amounts used. Once you have accepted the Auto OCAF rent increase, you will need to execute one Form HUD-92458 Rent Schedule and return it to us with your signed certification within ten days. We will execute the HUD-92458 Rent Schedule and return it to you, at which time you will complete your Gross Rent Change through TRACS. The entire process can be easily completed in time to implement the new rents by your property’s contract anniversary date. If your contract allows for budget-based rent adjustments, you will be offered the option to submit a budget-based request instead of returning the Auto OCAF to SHCC.
Properties that receive a Utility Allowance are still required to complete a Utility Analysis annually at the time of the annual rent adjustment in the manner described in HUD Multifamily Asset Management and Property Servicing Handbook 4350.1, Chapter 7. Please have this completed and submitted to us at least 150 days prior to your property’s contract anniversary date. This will ensure timely processing of your Auto OCAF rent increase.
Submission Requirements for Properties Not Eligible for Auto OCAF
- OCAF Worksheet
- Utility Allowance Analysis (if applicable)
- Mortgage Statement showing current Debt service
Forms
See the Rent Adjustments Forms page for more links.