S8 Rent Adjustment Methods
The Auto OCAF eliminates the requirement for owners to prepare OCAF worksheets for submission to the PBCA for rent adjustments. Approximately 150 days prior to the contract anniversary date, properties eligible for an Auto OCAF rent adjustment will receive an Auto OCAF packet via email that includes a letter indicating the new OCAF increased rents, a new Exhibit A, and an owner certification for the accuracy of the property’s annual mortgage payment (Principle, Interest, Mortgage Insurance Payment (MIP) and non-Section 8 unit rent potential).
Owners and Managing Agents should read the Auto OCAF Acceptance Letter carefully to confirm and certify the debt service and non-Section 8 rent amount, if applicable, are accurate on the letter before signing it.
Rent Comparability Study (RCS)
Certain contract types require the contract rents to be adjusted by a RCS. The property will not eligible to receive an automatic OCAF. This will be identified in the property's current contract and on a reminder letter from THDA.
Budget Based (BB)
The budget based rent adjustment requirements can be found in the Section 8 Renewal Policy Guide and the Guidebook HUD 4350.1. All required forms and supporting documentation for the proposed expenses are required to be submitted with the owner's request.