HUD Flashcards
HUD-2530 Form
HUD Previous Participation Certification:
Initiates the approval process for Industry partners who wish to participate in HUD projects.
Two major types of HUD-2530 submissions:
- Property Submission - allows an entity to seek HUD’s approval to play a specific role in a particular project.
- Organization Change Submission - enables an organization to make changes in the organization’s current makeup (example: to add, edit, or remove principals).
SECTION 8 CONTRACT RENEWAL OPTIONS
Option 1: Mark up to Market
Eligibility: This option is available to owners whose contract rents are below comparable market rents as determined by a rent comparability study. An owner may request that their eligible current HAP contract be terminated and renewed under this option.
Term: Between 5 and 20 years.
SECTION 8 CONTRACT RENEWAL OPTIONS
Option 2: Mark up to Budget
Eligibility: This option is available to owners whose contract rents are below or equal to comparable market rents. An owner may reduce their rents to market levels to participate under Option 2.
Term: Between 1 and 20 years.
SECTION 8 CONTRACT RENEWAL OPTIONS
Option 3: Mark-to-Market
Eligibility: This option is available to certain projects whose rents exceed market comparable levels as determined by a rent comparability study. Typically, this applies to projects whose mortgages are insured by the Federal Housing Administration. Congress granted HUD the authority to restructure an owner’s mortgage so that debt service is reduced to a level that can be supported by market comparable levels. If projects can
Term: 20 years.
SECTION 8 CONTRACT RENEWAL OPTIONS
Option 4: Exception Projects
Eligibility: This option is available to projects which are exempt from restructuring under MAHRA. This typically means that the project is not subject to an FHA-insured mortgage, but instead has a conventional mortgage or is tax-credit financed.
Term: Between 1 and 20 years.
SECTION 8 CONTRACT RENEWAL OPTIONS
Option 5: Preservation Projects
Eligibility: Certain projects subject to a long-term HUD use agreement are required to renew under this Option. This typically includes projects with a Portfolio Reengineering Demonstration Use Agreement, an ELIHPA Use Agreement, or a LIHPRHA Use Agreement.
Term: Varies depending on HAP contract requirements
SECTION 8 CONTRACT RENEWAL OPTIONS
Option 6: Opt-out
Eligibility: An owner may elect to not renew their HAP contract upon expiration. This does not apply to owners subject to a contractual obligation to renew the HAP contract resulting from a Use Agreement that is attached to the property.
An owner must provide HUD and tenants notice of the opt-out one year prior to expiration of the HAP contract. Upon expiration, eligible tenants will be issued enhanced vouchers pursuant to 42 U.S.C. § 1437f(t).
SECTION 8 CONTRACT RENEWAL OPTIONS
Section 8 Preservation Efforts
Eligibility: An owner who is eligible to renew their HAP contract under Option 1 or 2 may also participate in the Section 8 Preservation Efforts programs described in Chapter 15 of the Section 8 Renewal Policy Guide. The Transfer program provides incentives for the assignment of a HAP contract to a nonprofit, mission-oriented owner. The Capital Repairs program ensures that the HAP renewal These programs provide a variety of benefits to owners who wish to ensure long-term preservation of the housing assistance at their property. Some benefits include:
- A long-term HAP contract that can be used to qualify for Low-income Housing Tax Credits;
- Rents that are based on the as-renovated condition of the property prior to completion of construction; and
- The ability to raise rents in excess of those permitted by other affordable housing programs.
