When requesting renewal of your MAHRA Section 8 HAP Contract, it’s important to consider the overall benefits of renewing for a multi-year term. First and foremost for owners, the paperwork associated with annual renewals is eliminated for the term of the HAP contract (5, 10, 20 years). Additionally, the paperwork and processing time associated with the submission of annual rent adjustments is greatly reduced via the automatic (Auto) OCAF rent increase process.
The Auto OCAF simplifies the annual rent adjustment process for multiyear contracts by eliminating the requirement for owners to calculate, prepare and submit their own OCAF worksheets in rent adjustment years (e.g. years 2 through 5). If your property is eligible for an Auto OCAF increase, the Auto OCAF letter with the new OCAF-increased rents, Exhibit A and rent schedule will be sent to you approximately 150 days prior to the contract anniversary date. If you accept the Auto OCAF rent increase, you will be asked to certify the project’s debt service and non-section 8 rent potential.** You will still be able to select a budget-based rent increase if you determine an OCAF increase does not meet your property’s financial needs. Upon receipt of the signed certification accepting an OCAF increase and rent schedule, CAHI will immediately return the executed rent schedule to you for completion of your gross rent increase in TRACS. The entire process can easily be completed in a matter of a few weeks, well in advance of the project’s contract anniversary date.
If your project receives a Utility Allowance, you are still required to complete and submit a Utility Analysis at the time of the annual adjustment. To further streamline the Auto OCAF process, CAHI requests that you submit the required Utility Analaysis prior to receiving the 150-day letter. Keep in mind that if the Utilty Allowance decreases, you are required to comply with Tenant Comment Procedures (4350.1, Paragraph 7-5) and must submit a valid Owner’s Certification of Compliance with Tenant Comment Procedures. Additional information about Utility Allowance Submission Requirements can be found here.
All projects are encouraged to review all renewal options and rent adjustments available to them to determine the options that best fit their specific needs. We also encourage you to contact your CAHI Central Contract Specialist with any questions you may have. It is our goal to make each and every process as effortless as possible for you.
*Contract renewals and certain contracts ineligible to receive an automatic OCAF annually will not be a part of this automated process. Renewal and rent increase packages for those projects should be submitted to CAHI as in the past.
** CAHI reserves the right to further verify debt service.