Option 4 is for project types that are not eligible for OAHP, formally known as OMHAR, even though the contract rents may exceed market. These properties are known as "exception properties" and are renewable under Section 524(b). Projects without FHA-insured loans are exempt, as are certain FHA-insured properties. Whether initial or subsequent renewal, the project will be subject to the “lesser of test.”
Owners who have projects that are exempt from OAHP and have contract rents that exceed market rents should consider this option. Eligible projects that wish to renew under this option will renew their rents at the lesser of the projects current rents adjusted by an operating cost adjustment factor (OCAF) or the budget based rent as described in HUD Handbook 4350.1 Chapter 7 and Attachment 5.
Refer to HUD's Section 8 Renewal Policy Handbook for more information and to determine project eligibility and complete submission requirements.
- Contract Renewal Request Form (HUD Form 9624)
- Option 4 Renewal Worksheet
- OCAF Worksheet (HUD Form 9625)
- Budget Calculation Worksheet (HUD Form 92547)
- 30-day notice and comment period for a budget, if applicable
- Rent Schedule (HUD Form 92458)
- Utility Allowance Analysis, if applicable
- RCS, if applicable
- Tenant 1 year Notification of Renewal Letter
- Owner Certification of Zero Debt Service, if applicable