The Department of Housing and Urban Development has issued page changes to the Section 8 Renewal Policy Guide. Two of those changes have an impact on budget-based rent adjustment requests in Option Four. The first requires the use of current debt service in an Owner’s budget-based rent increase request and the other permits a budget-based rent increase at the annual anniversary date only if the proposed rents do not exceed comparable market rents.
The effective date of these page changes is May 18, 2012. Any budget-based rent increase request postmarked prior to May 18, 2012 can be processed under the previous guidance. Any budget-based rent increase postmarked May 18, 2012 or thereafter must abide by the new guidance. This new requirement applies to all Option Four contracts, even multiyear contracts signed prior to May 18, 2012.
The effective dates for the other changes remain the same. Please contact Stan Houle with questions at Stanley.R.Houle@hud.gov