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Do you have a checklist for complete package requirements?


Complete Package for a Budget-based Rent Adjustment

Your CCS will use the guidance below to determine if the owner has submitted a complete package for his rent adjustment: Complete Package for a Budget.doc

Cover Letter that briefly does all of the following:

  • Summarizes the reasons why a rent increase is needed and the date the increase will be effective.
  • Percentage of rent increase requested
  • Describe the project's physical condition and any improvements that have been budgeted for. The letter may refer to the reasons stated in the Notice or elaborate on those reasons. (The main reasons stated in the letter must be the same as the main reasons stated in the Notice to Tenants, if the project was subject to the tenant comment procedures.
  • Identifies any proposed change in services, equipment or charges and the reasons for the change.

¨Completed Budget Worksheet (Form HUD 92457-A) (must not be expired HUD form)

  • Most recent audited financial figures in the left column (These figures must match the most recent Audited Financial Statements submitted to HUD and present in iREMS).
  • For any property not insured by HUD, the owner must submit a copy of the most recent fiscal year financial statements
  • Year to date actual expenses in the middle column
  • Proposed figures for the requested budget year in the right column
  • Form must be signed and dated

An explanation and supporting documentation for line items

  • An increase equal to or greater than 5% and $500 requires an explanation and supporting documentation.
  • An increase of less than 5% and less than $500 does not require an explanation or documentation
  • New line items not included in the prior year budget may require an explanation and supporting documentation. 

Examples of supporting documentation include:

  • Current (past 12 months) copies of contracts, invoices, bills or estimates obtained
  • Dated notice of an increase from a utility company, insurance provider etc.
  • Analysis and backup documentation of how the projected expenses were estimated

Current Management Certification approved by HUD or other documentation to support Management Fee (form HUD-9839-A,B,C, as applicable)

  • Management fees which are not supported by a current Management Certification; the owner/agent must submit to HUD and obtain HUD approval of a current Management cert
  • Please note this must be submitted directly to HUD for approval. Once HUD approval has been received, please forward a copy of the approval to CGI

 Copy of Notice to the Residents

  • Where applicable, a copy of the Notice to Tenants annotated to show where and how the Notice was distributed (e.g., posted, mailed, hand carried)
  • Notice must show reason(s) for the requested increase, and the tenant’s right to contact HUD within 30 days.
  • Notice to residents must follow the exact format listed in HUD Handbook 4350.1, Chapter 7, Appendix 1

Copy of Comments from Residents and Owner Evaluation of Comments

  • All comments from residents received by the owner must be reviewed, evaluated and responded to by the owner (Property types: 202’s, 221 (d)4 and Co-ops exempted)
  • The comments, summary of the owner’s review and evaluation of the comments, and the owner’s response to the comments must be submitted to the PBCA with the rent adjustment

Owner Certification that he provided proper notice to the tenants

  • Per the 4350.1 Chapter 7, Appendix 2, this document refers to the Notice to Tenants and the owner certifies he provided proper notice. The owner also certifies that he provided the full comment period which is 30 days.
  • The Certification must be dated 30 days following the Notice to Tenants. 

An executed copy of the Owner's Certification Regarding Purchasing Practices and Reasonableness of Expenses 

A status report on the project's implementation of its current Energy Conservation Plan

  • This applies only to section 236 and BMIR projects, projects that receive rent supplement assistance, and projects that converted from rent supplement to section 8 

A signed request for an increase in the Reserve for Replacement if such an increase is contemplated as part of the rent increase request.

  • IF the owner wishes to increase the RfR deposit, the request must be submitted in writing and be accompanied by a Capital Improvement Plan or a 5 year Reserve for Replacement Analysis
  • HUD form 9250
  • Any change in the Reserve for Replacement deposit must be approved by HUD  

Utility Allowance Analysis, if applicable

Complete Package for an OCAF

To complete an OCAF you will need the Attachment 3B, current debt service, a Utility Analysis if applicable and a RCS if applicable.


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