Option 5 is for the renewal of projects that previously went through the Portfolio Reengineering Demonstration Program or those that entered into long-term use agreements with HUD under the Preservation Program (LIPHRA and ELIPHRA).
Eligibility for Option 5 is limited to two types of properties:
Preservation Projects: Owners that entered into a long term use agreement with HUD as part of the Preservation Program, HUD agreed to certain items which were outlined in the Preservation property's approved Plan of Action (POA). In a majority of Preservation contracts, the POA allows for either a budget-based rent adjustment or an Annual Adjustment Factor (AAF) rent adjustment. Refer to HUD's Section 8 Renewal Policy Handbook for more information and to determine project eligibility.
Demonstration Projects: Initial Renewal: HUD is no longer doing initial renewals under the Portfolio Reengineering Demonstration Program.
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 5 Renewal Worksheet
- Amend rents process as provided for in Plan of Action (for Preservation Projects)
- OCAF Worksheet (HUD Form 9625), if applicable
- Budget Calculation Worksheet (HUD Form 92547), if applicable
- Tenant one-year Notification Letter
- Utility Allowance Analysis, if applicable
- RCS, if applicable
- 30-day notice and comment period for a budget, if applicable