which option is right for you?
Use the following summaries to understand what option your property fits into, then contact CHFA Asset Management to proceed.
Renewal with existing rents adjusted by Operating Cost Adjustment Factor (OCAF) or on the basis of a budget when rents under the expiring contract are at or below market
Referral to Office of Affordable Housing Preservations (OAHP) for processing because the contract has rents greater than market and is subject to an FHA-insured or HUD-held mortgage
Renewal of contracts for “exception” projects, which are exempt from debt-restructuring pursuant to 514(h) of Multifamily Assisted Housing Reform and Affordability Act (MAHRA) or are not an “eligible multifamily housing project” as defined in section 512(2) of MAHRA
Renewal of contracts for Portfolio Reengineering Demonstration or Preservation projects
Opt-out of the Section 8 contract
Get your contract renewal forms here
Auto OCAF Rent Increases
This process eliminates the requirement for you to calculate your project’s own OCAF rent increase and submit an OCAF Worksheet to the contract administrator (CA) during amend rents years to obtain an OCAF rent increase.
The entire process, detailed below, can be completed within two weeks and can provide you with your rent increase in time to process your project’s contract anniversary date.
If your project is eligible for an Auto OCAF rent increase, we will send you a letter advising you of your project’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 must complete and execute Form HUD-92458 Rent Schedule and return it to us with your signed certification within 10 days.
We will then execute the HUD-92458 Rent Schedule and return to you. At that time, you will complete your Gross Rent Change through TRACS.
For projects that receive utility allowances, you are still required to complete a Utility Analysis annually at the time of the annual rent adjustment. Please have this completed and submitted to us at least 150 days prior to your project’s contract anniversary date.
Zero Budget-based Adjustment
The Owner also has the option of selecting a zero budget-based adjustment in lieu of the OCAF adjustment. This will result in renewed funding at current rates.
If the Owner choses to not elect any of the above choices, the following information should be submitted to request a budget-based rent increase:
Cover letter summarizing reasons for needed rent increase and date increase will be effective. Provide description of physical condition of property and any improvements included in budget. Identify any proposed changes in services, equipment, or charges.
Brief justifications for any increase in expense line items of 5 percent or more. If income or expense was established at the prior annual period’s actual or increase is less than $500, no explanation is required.
Copy of Notice to Tenants, if applicable
Executed copy of Owner’s Certification Regarding Purchasing Practices and Reasonableness of Expenses
Energy Conservation Plan (see Chapter 12)
Signed request to increase the monthly deposit for the Reserve for Replacement account.
Utility allowance analysis, if applicable
Copy of Owner’s Certification as to Compliance with 24 CFR Part 245s Review and Comment Procedures