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Question:
How do I prepare for a contract renewal and rent adjustment?

Answer:

How to Prepare for a Contract Renewal & Rent Adjustment

Know the date of your contract expiration or funding expiration

Read and understand the letter sent to you 6 months before the expiration date.  If after reading the letter you have questions, call the Contract Specialist for clarification.

    • Attachment 3 must be received at least 120 days prior to anniversary date of contract per Section 8 Renewal Policy Guide.  Do not forget to:
      • Choose an option
      • Specify number of years renewing
      • Sign & date

Reference the Section 8 Renewal Policy Guide to choose an eligible Option.

Write a cover letter specifically stating the percent increase you are requesting.  Be specific if you are requesting to use funds from reserve accounts. 

OCAF Requirements for Complete Package

Budget Base for Complete Package

  • See attached BB Complete Package Checklist
  • Complete Package Checklist for Budget Based Rent Adjustment
    • HUD pre-approval is required on the following items:
      1. Increase in staffing hours: either a new position or increasing the hours
      2. Addition of new on-site security personnel or an increase in the hours of existing onsite security
      3. Inclusion of past due accounts payable in the operating budget
      4. Increases in the Reserve for Replacement deposit: and/or
      5. Management fees which are not supported by a current Management Certification (form HUD 9839-A,B,C as applicable); the owner/agent must submit to HUD and obtain HUD approval of a Management cert that is current
      6. A service coordinator position not previously included in the operating budget
      7. Service Coordinator Budget dependent upon Residual Receipts and/or Grant

Respond quickly to any additional info requests

Review Contract/Rent Schedule when sent to you for signature, be sure it matches your intended request

Sign Contracts/Rent Schedules and send them back to CGI as quickly as possible

When Funding is Approved, executed Contract/Rent Schedule will be mailed back to you.  New rent amounts will be received based on effective date

How CGI Reviews and Completes Your Request

Review the initial submission for completeness and eligibility using the attached checklists

Contract Specialist will input all figures into OCAF / BB Worksheet for first review of all required back up documentation

  • All Rent Adjustments submitted must have accompanying Utility Analysis (UA)  documentation (if applicable), even if UA increase is not requested
  • If not complete the contract specialist will make a list of the items that still need to be submitted, a letter will be sent to OA itemizing list
  • Once determined a complete package the Contract Specialist will process
  • After completely processing, the Contract Specialist will do three things simultaneously:
      1. Submit complete package to HUD with approval recommendation
        a.  CA Worksheet
        b.  OA Worksheets
        c.  REMS Printouts
        d.  Backup Documentation
      1. Request Funding Reservation
      2. Send Preliminary Letter to OA with Rent Schedules / Contracts

Once Rent Schedules/Contracts are returned to CGI from OA and Funding Reservation from HUD has been approved, then CGI Executes Contracts

  • Notification of Funds sent to HUD Fort Worth to Obligate the Funds, if Contract Renewal

Final Letter is sent to OA with Executed Rent Schedule/Contract

  • Duplicate Package is sent to HUD
  • CGI keeps a third duplicate package for records
  • Contract Renewal only, fourth copy gets sent to HUD Fort Worth

    

CGI • 100 Great Oaks Blvd. • Suite 120 • Albany • New York • 12203 • Tel (518) 218-7700 • Fax (518) 218-7800 Contact Center • 1 (866) 641-7901
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