NAHMA HUD Update: Chapter 9 of Section 8 Renewal Policy GuidebookIssuedDecember 2, 2016 Below, please find a link to HUD revisions to the Section 8 Renewal Policy guidebook, which will affect Rent Comparability Studies (RCSs) on renewals beginning next year.
Among other items, updates to Chapter 9 of the guidebook reflect changes to rent renewal options: The revisions better identify the responsibilities of each business partner, while highlighting unique provisions for AAF rent determinations. The updates also clarify that FMR or rent options for non-Section 8 units are only available under Option Two contracts; additionally, Section 9-4 owner options must be approved by HUD.
Second, the revisions clarify rent grid adjustments by providing clearer instructions on how and why adjustments are made. In addition, the changes increase the appraiser documentation required if a rent grid adjustment exceeds, by nominal or percentage amount, the unadjusted rent of the comparable.
Lastly, Chapter 9 was updated with regard to the review process. The revisions provide more precise qualifications for HUD reviewers and establish triggers for a second review if the substantial review was conducted by a non-appraiser.
Chapter 9 revisions apply to Rent Comparability Studies dated on or after March 1, 2017. NAHMA will continue to undertake analyses and agency communication with assistance from its Regulatory Affairs Committee with regard to Renewal Policy Guidebook updates issued by HUD.
To read HUD's transmittal, click here.
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