HUD Posts Proposed Section 8 Renewal Guide Changes

On July 23, 2010, HUD posted a draft of upcoming Section 8 Renewal Guide changes on their website for comment. A number of the rent setting policy changes PreserveOregonHousing has recommended are addressed in the draft Renewal Guide including these:

• Allow for-profit and non-profit owners renewing under Option Two access to increased distributions if the owner signs a 20 year HAP contract
• Allow nonprofit owned projects with 100 percent Section 8 to include a vacancy rate of 5 percent in the budget.
• Allow nonprofit owners of old regulation or LMSA contracts to include a 6 percent return on initial equity in the budget.
• Allow projects with low income housing tax credits to include in their budget the cost of the annual compliance reports that must be submitted to the tax credit allocation entity.
• Allow new debt service in an Owner’s budget regardless of the renewal option selected.
• Recognition the new post rehabilitation rents upon completion of work

PreserveOregonHousing applauds HUD for listening to the recommendations of Preservation practitioners and advocates around the country. We believe these proposed changes will help prevent the loss of Section 8 assisted units by promoting private sector investment in affordable housing preservation, and encouraging existing owners to execute long term renewals of their contracts.

The draft page changes to the Section 8 Renewal Guide have been posted for comment on the HUD Website Here and will remain posted on the website for 10 business days after the publication of the Federal Register Notice. Comments are due to HUD 20 business days after the publication of the Federal Register Notice and must be identified by specific page and paragraph reference. Comments may be submitted by email to Section8RenewalGuide@hud.gov or by overnight mail to:

Department of Housing and Urban Development
Attention: Section 8 Renewal Guide
Room 6134
451 7th Street SW
Washington, DC 20410

— Posted on 7/26/2010