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Project-Based Contract Administration

Contract Renewals

Contract Renewals

The Section 8 Renewal Policy Guide provides guidance for renewing expiring Section 8 Project-Based contracts. These instructions apply to all Contract Administrators (CA) who are responsible for overseeing contract renewals. According to this guide, “owners are required to submit documentation to HUD or the CA at least 120 days prior to the expiration of the contract.” Owners must also notify their tenants by sending them a letter no later than one year prior to their contact expiration date.  Owners must provide a copy of that letter letter to KHC.  The letter must include the information provided in Chapter 11 of the Section 8 Renewal Policy Guide, please refer to Appendix 11-1 and 11-2.

A contract can be an initial renewal, subsequent, or multi-year contract. The type of renewal determines what documentation is required to be submitted to KHC. Additionally, it determines what type of forms must be executed.

Initial Renewals

The first renewal of a project’s contract that is processed under the rules established by Multifamily Assisted Housing Reform and Affordability Act (MAHRA) is considered the initial renewal of the contract.

Subsequent Renewals

A subsequent renewal is the renewal of a contract at the end of its term under MAHRA.

Contract Renewal and Rent Adjustment

KHC currently administers contracts with terms of one-year to five-years. In order to preserve affordable housing, HUD may approve a 20-year contract or an extension of the existing contract, if requested by the owner at renewal. Owners should refer to HUD's Section 8 Renewal Policy Guide and Frequently Asked Questions.

The owner is required to complete the following contract renewal forms, HUD-9625 and HUD-9624, which are available on HUD's website, under Forms Resource, HUD-9, then 96001--999.

The OCAF rate changes yearly and the new rate is typically published by HUD in October through the Federal Register to reflect the new effective rate beginning February 11th of the following year.

The Department of Housing and Urban Development (HUD) published a notice effectively changing the way that utility analysis are completed by owners of Project-Based Section 8 properties. The new notice can be found on HUD's website at:

Please refer to HUD Notice 2015-04 on Methodology for Completing a Multifamily Housing Utility Analysis and (the later release on August 2016) - Frequently Asked Questions Update on Methodology for Completing Utility Analysis.  Owners of multifamily housing properties that receive subsidy assistance, and for which HUD provides a utility allowance, are required to adjust their property's utility allowances every year at the time of the annual adjustment of contract rents. Utility adjustments must be supported by a utility analysis. Owner certifications in lieu of utility analysis are not permitted. HUD now requires that multifamily property owners must establish baseline utility allowances for each of their bedroom sizes once every third year. Please refer to the notice for more information on how to perform a baseline and what are the minimum samples required.

If you are preparing to process an analysis for year 2 or 3 (after the baseline) remember to use HUD's most currently published Utility Allowance Factor (UAF).

If you have any questions or concerns about this notice, please Contact Us.​