Announcements

Tenant Notification Requirement for 5th Year Rent Adjustments
May 29, 2019

As part of the rent adjustment process, the 5th year adjustment requires the owner to submit a new RCS at the end of each 5-year life cycle of the RCS. If rents are above market, the AE/CA will reduce the rent to the comparable market rent. If rents are below market, the AE/CA will increase the rents to comparable market rents.

As rents are not being adjusted by the OCAF, tenant notification is required as stated in the HUD Section 8 Renewal Guide, Chapter 2 Paragraph 2-17 C.1.:

2-17 C. Annual Rent Adjustments for Multiyear Contracts for Projects not Participating in Auto OCAF

1. Before submitting the annual rent adjustment request under 2. Below, the owner must follow the tenant notification procedures in 24 CFR Part 245 Subpart D if the rent increase is not an OCAF rent adjustment. Whenever an owner’s utility analysis results in a possible decrease in the utility allowance(s) to the project tenant notification procedures in 24 CFR Part 245 must also be followed even if the rent adjustment was made by the OCAF. Should a notice need to be issued for both a rent increase and a utility allowance decrease, a single notice is sufficient if the owner clearly identifies both items in the notice.

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