U.S. Department of Housing and Urban Development

H O U S I N G

Special Attention of: Notice H 97-66 (HUD)

State Coordinators; Director of

Housing; Director,

Multifamily Housing Division; Issued: November 12, 1997

Multifamily Asset Expires: November 30, 1998

Management and Development Branch

Chiefs; Contract Administrators;

Owners and Managers of Projects with Cross References:

Expiring Section 8 Contracts

Subject: FY 1998 HUD Appropriations Act

This Notice implements the provisions of the Departments of

Veteran Affairs and Housing and Urban Development, and Independent

Agencies Appropriations Act, 1998, (Pub. L. 105-65, 111 Stat. 1344,

approved 10/27/97) that establish contract renewal policy for FY

1998\. In addition to the \"transitional\" policy for FY 1998, the 98

Act also establishes a new renewal policy for expiring contracts in

\"FY 1999 and beyond\". The Department is currently studying the \"FY

1999 and beyond\" provisions and will publish a notice implementing

the permanent provisions at a later time.

This Notice reinstates Housing Notice H-96-89 , Fiscal Year

1997 Appropriations Act. Sec. 522(b) of the 98 Appropriations Act

makes Sec. 211, with certain exceptions, applicable to contracts

expiring in FY 1998. Notice H-96-89 implements Sec. 211 of the 97

Appropriations Act. The key provisions of Sec. 211 are twofold:

\(1\) 211(b)(1) establishes a 120% of Fair Market Rent (FMR) rent

cap; (2), 211(b)(2) and (b)(3) are the exemptions to the 120% FMR

cap (for public agency bond financed and State-insured projects,

Rural Housing Service (formerly Farmers Home) 515/8 projects, and

202/8 projects). Sec. 523(e) of the 98 Act amends the exemption

language in the 97 Act to add an exemption from the 120% FMR cap

for projects with current rents below \"comparable rents.\" (The 98

Act also created an exemption for Section 8 SRO McKinney Act

projects, but that provision is not covered by this Notice. The

Section 8 SRO provision will be implemented by HUD\'s Office of

Community Planning and Development which has jurisdiction over that

inventory.)

Under the amended Sec. 211 for FY 1992, in cases where rents

exceed 120% of FMRS, comparability analysis must be performed. If

rents are below comparables, the contract may be renewed at

existing rents. If rents are above comparables, rents must he

reduced to 120% of FMRS. Comparability determination is the sole

responsibility of the owner, not HUD. Owners are instructed to

follow the same submission requirements as those outlined in Notice

H-97-14 , FY 1997 Annual Adjustment Factor (AAF) Requirements, for

conducting comparability.

H: Distribution: W-3-1

2

In particular, owners are responsible for submitting form-HUD 92273

(3/95), Estimates of Market Rent by Comparison, completed by a

nonidentity of interest, state-certified, general appraiser. While

Notice H-97-14 applies to New Construction/Substantial

Rehabilitation properties, the comparability requirement in the

context of contract renewals applies to all projects with rents

above 120% of FMRS.

Sections 405(a) and 405(c) of the January 26, 1996 Continuing

Resolution (Balanced Budget Downpayment Act, I) are permanent

provisions of law which were not repealed by the 1998

Appropriations Act. Thus, owners may continue to request renewals

under these Sections in FY 1998. Section 405(a) also caps renewal

rents at 120% of FMR, but allows for a limited budget-based rent

increase of up to 5% as long as the adjusted rents do not exceed

120% of FMR. Housing assistance, however, may only be provided for

units occupied by subsidized tenants at contract expiration. (See

Notice H-96-74 , Project-Based Section 8 Contracts Expiring in FY

1997, and Notice H-96-89.) Under Notice H-97-11 , Supplemental

Guidance for Section 236 Projects (which implements Sec. 405(c) of

the BBDA, I), issued February 24, 1997, LMSA contracts for Sec. 236

projects are to be renewed at Basic Rent levels in cases where

Basic Rents exceed 120% of FMRs (i.e., such project rents are not:

reduced to 120% of FMRs).

Owners may continue to request the Demonstration Renewal

Contract in FY 1998 for projects eligible to participate in

portfolio reengineering, in which case owners may receive a six-month

contract at current rents while the mortgage is being

restructured. Generally, a contract extension of up to six months

can be granted at HUD\'s discretion if the owner is negotiating in

good faith. Sec. 523(f) of the FY 1998 Act also provides, at the

discretion of HUD, an additional 120-day contract for (a) projects

with demo contracts executed prior to February 1, 1997 or (b) joint

venture projects with demo contracts executed before October 1,

1997\. The 98 Act contains two key provisions regarding Portfolio

Reengineering: (a) extension of the 1997 program into FY 1998 (with

minor modifications listed in Section 522(b); and (b) the

establishment of a permanent program for FY 1999 and beyond

(Section 522(a)), which requires HUD to develop implementing

regulations for the permanent program. Separate guidance will be

issued on the FY 1998 demo.

The renewal term for contract expirations in FY 1998, for all

but demo contracts, continues to be not more than one year.

Prescribed contract documents for Sections 405(a) and 405(c) should

continue to be used. Contract forms for contracts executed in FY

1998 under Sec. 211 and the Demonstration Renewal Contract for

projects participating in portfolio reengineering are amended

pursuant to the new authority in the law.

3

The revised contracts are attached.

On September 3, 1997, the Department issued Notice H-97-54,

Tenant Notification of Expiring Section 8 Contracts, which

implements Section 10002 of the 1997 Emergency Supplemental

Appropriations Act, approved June 12, 1997. That Act amended

Section 8(c)(9) of the United States Housing Act of 1937 by

shortening the notification period from one year to \"not less than

180 days\" effective with contract expirations on or after June 12,

1997\. Notice H-97-54 transmits a new sample letter to tenants

which supersedes the sample letter in Notice H-96-89 (\"Attachment

6\"). The sample letter in Notice H-97-54 should continue to be

used until further notice. (Sec. 514(d) of the 98 Act provides for

a one-year tenant notice in cases where the owner does not intend

to renew an expiring contract. This provision applies to the

permanent portfolio reengineering program, and thus only applies in

FY 1999 and beyond.)

Program participants are referred to other relevant guidance,

in particular the November 1, 1996 memo \"Clarification of

Procedures for Expiring Project-Based Section 8 Contracts.\"

Although parts of the memo were superseded by the Contract Non-Renewal

Notice H-97-50 , issued August 8, 1997, the comparison chart

of Sections 405(a) and 211, and other related technical Q&As that

follow, are still extremely useful.

With respect to the administrative provisions, Section 201(d)

of the 98 Appropriations Act extends the Section 8 minimum rent

requirement as well as the suspension of mandatory preferences for

admissions for the duration of FY 1998. There are no changes

involving these two items and program participants should continue

to follow the existing policies in Notice H-96-89 .

With respect to the AAF rent adjustment provisions

(comparability for New Construction and Substantial Rehabilitation

projects with current gross rents in excess of FMRs and the 1%

reduction of annual adjustment for non-turnover units), Section

201(c) of the 1998 Appropriations Act extends these provisions into

FY 1998. Additionally, Sections 2003 and 2004 of the Balanced

Budget Act of 1997 (Pub. L. 105-33, Ill Stat. 251, approved August

5, 1997) make these provisions applicable in \"FY 1999 and

thereafter\" (i.e., these provisions are now permanent law). A

notice addressing these provisions will be issued under separate

cover.

4

Questions pertaining to the implementation of provisions of

the FY 1998 Appropriations Act addressed in this Notice may be

directed to James Cruickshank, Office of Multifamily Asset

Management and Disposition, HUD Headquarters, at (202) 708-4162 or

via cc:mail addressed to James S. Cruickshank on FHCPOST3.

Nicolas P. Retsinas

Assistant Secretary for Housing-

Federal Housing Commissioner

Attachments

U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

Office of Housing, Federal Housing Commissioner

HOUSING ASSISTANCE PAYMENTS

RENEWAL CONTRACT

HUD as Contract Administrator

SECTION 8 PROJECT
NUMBER:\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

SECTION 8 PROJECT NUMBER OF EXPIRING CONTRACT

(if
different):\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

FHA PROJECT NUMBER: (if
applicable)\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

TYPE OF PROJECT: New

Construction:\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

Substantial Rehabilitation:\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

Loan Management Set Aside:\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

Property
Disposition:\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

This HOUSING ASSISTANCE PAYMENTS CONTRACT (\"Contract\'\') into

between the U.S. Department of Housing and Urban Development

(\"HUD\") and \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_
(\"Owner\") pursuant to the

United States Housing Act of 1937, 42 U.S.C. 1437 et seq. and the

Departments of Veteran Affairs and Housing and Urban Development,

and Independent Agencies Appropriations Act, 1998, Pub. L. 105-65,

111 Stat. 1344, approved 10/27/97 (\"FY 1998 HUD Appropriations

Act\"). The purpose of this Contract is to provide housing

assistance payments on behalf of Eligible Families (\"Families\")

leasing decent, safe and sanitary units from the Owner.

Previously, HUD and the Owner entered into a Housing Assistance

Payments Contract (\"Expiring Contract\") to provide section 8

assistance to the Owner for eligible families living in

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_
(\"Project\").

This Expiring Contract expires on
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_,

199\_.

Since the FY 1998 HUD Appropriations Act gives HUD the authority to

renew Housing Assistance Payments Contracts for a period of not

more than one year, HUD and the Owner desire to renew for the term

specified below the Expiring Contract EXCEPT for the Contract Rent

and Rent Adjustment Provisions.

THEREFORE, HUD and the Owner hereby agree as follows:

1\. This Contract provides Housing Assistance Payments to the

Owner for the term specified (see #4 & #5 below) at the

contract rent levels listed in Exhibit A.

2

2\. All terms of the Expiring Contract are renewed except for

those provisions relating to contract rents and rent

adjustments.

3\. There will be no rent adjustments during the term of this

Contract.

4\. The effective date of this Contract is
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_.

(The date inserted must be the day after the date of the

Expiring Contract. For example, if the Expiring Contract

expires on February 21, 1998, the date inserted must be

February 22, 1998).

5\. This Contract terminates on
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_.

6\. The maximum amount of the commitment for housing assistance

payments under this Contract is \$\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_.

7\. The Owner warrants that it has the legal right to execute this

Contract and to lease dwelling units covered by this Contract.

8\. The Owner warrants that the rental units to he leased under

the terms of this Contract are in good and tenantable

condition and are in decent, safe and sanitary condition.

This Contract is hereby executed with respect to the contract units

described in Exhibit A.

United States of America

Secretary of Housing and

Urban Development OWNER

By:\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_
By:\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

(Official Title) (Official Title)

Date:\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_
Date:\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

3

EXHIBIT A

IDENTIFICATION OF UNITS (\"CONTRACT UNITS\")

BY SIZE AND APPLICABLE CONTRACT RENTS

Number Number Contract

of Units of Bedrooms Rent

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

Office of Housing, Federal Housing Commissioner

HOUSING ASSISTANCE PAYMENTS

RENEWAL CONTRACT

PHA as Contract Administrator

SECTION 8 PROJECT
NUMBER:\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

SECTION 8 PROJECT NUMBER OF EXPIRING CONTRACT

(if

different):\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

FHA PROJECT NUMBER: (if

applicable)\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

TYPE OF PROJECT: New

Construction:\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

Substantial

Rehabilitation:\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

Loan Management Set

Aside:\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

Property

Disposition:\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

This HOUSING ASSISTANCE PAYMENTS CONTRACT (\"Contract\") is entered

into between the
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_
Public Housing

Agency (\"PHA\")

and\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_
(\"Owner\")

pursuant to the United States Housing Act of 1937, 42 U.S.C. 1437

et seq. and the Departments of Veteran Affairs and Housing and

Urban Development, and Independent Agencies Appropriations Act,

1998, Pub. L. 105-65, 111 Stat. 1344, approved 10/27/97 (\"FY 1998

HUD Appropriations Act\"). The purpose of this Contract is to

provide housing assistance payments on behalf of Eligible Families

(\"Families\") leasing decent, safe and sanitary units from the

Owner.

Previously, the PHA and Owner entered into a Housing Assistance

Payments Contract (\"Expiring Contract\") to provide section 8

assistance to Owner for eligible families living in

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_
(\"Project\").

This Expiring Contract expires on
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_,

199\_.

Since the FY 1998 HUD Appropriations Act gives HUD the authority to

renew Housing Assistance Payments Contracts for a period of not

more than one year, the PHA and the Owner desire to renew for the

term specified below the Expiring Contract EXCEPT for the Contract

Rent and Rent Adjustment Provisions.

THEREFORE, the PHA and the Owner hereby agree as follows:

1\. This Contract provides Housing Assistance Payments to the

Owner for the term specified (see #4 & #5 below) at the

contract rent levels listed in Exhibit A.

2

2\. All terms of the Expiring Contract are renewed except for

those provisions relating to contract rents and rent

adjustments.

3\. There will be no rent adjustments during the term of this

Contract.

4\. The effective date of this Contract is

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_.

(The date inserted must be the day after the date of the

Expiring Contract. For example, if the Expiring Contract

expires on February 21, 1998, the date inserted must be

February 22, 1998)

5\. This Contract terminates on

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_.

6\. The maximum amount of the commitment for housing assistance

payments under this Contract is \$\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_.

7\. The Owner warrants that it has the legal right to execute this

Contract and to lease dwelling units covered by Contract.

8\. The Owner warrants that the rental units to be leased under

the terms of this Contract are in good and tenantable

condition and are in decent, safe and sanitary condition.

This Contract is hereby executed with respect to the contract units

described in Exhibit A.

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

PHA Owner

By: \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_
By:\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

(Official Title) (Official Title)

Date:\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_
Date:\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

3

EXHIBIT A

IDENTIFICATION OF UNITS (\"CONTRACT UNITS\")

BY SIZE AND APPLICABLE CONTRACT RENTS

Number Number Contract

of Units of Bedrooms Rent

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

Office of Housing, Federal Housing Commissioner

HOUSING ASSISTANCE PAYMENTS

DEMONSTRATION RENEWAL CONTRACT

HUD as Contract Administrator

SECTION 8 PROJECT

NUMBER:\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

SECTION 8 PROJECT NUMBER OF EXPIRING CONTRACT

(if

different):\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

FHA PROJECT NUMBER: (if

applicable)\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

TYPE OF PROJECT: New

Construction:\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

Substantial
Rehabilitation:\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

Loan Management Set
Aside:\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

Property
Disposition:\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

This HOUSING ASSISTANCE PAYMENTS CONTRACT (\"Contract\") is entered

into between the U.S. Department of Housing and Urban Development

(\"HUD\") and \_\_\_\_\_\_\_\_\_\_\_\_

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_
(\"Owner\") pursuant to

the United States Housing Act of 1937, 42 U.S.C. 1437 et seq. and

the Departments of Veteran Affairs and Housing and Urban

Development, and Independent Agencies Appropriations Act, Pub. L.

105-65, 111 Stat. 1344, approved 10/27/97 (\"FY 1998 HUD

Appropriations Act\"). The purpose of this Contract is to provide

housing assistance payments on behalf of Eligible Families

(\"Families\") leasing decent, safe and sanitary units from the

Owner.

Previously, HUD and the Owner entered into a Housing Assistance

Payments Contract (\"Expiring Contract\") to provide section 8

assistance to the Owner for eligible families living in

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_
(\"Project\").

This Expiring Contract expires on
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_,

199\_.

Since the FY 1998 HUD Appropriations Act gives HUD the authority to

renew Housing Assistance Payments Contracts for a period not to

exceed 180 days for those Owners electing to participate in the FHA

Multifamily Demonstration program, HUD and the Owner desire to

renew for the period specified below the Expiring Contract EXCEPT

for the Contract Rent and Rent Adjustment Provisions.

THEREFORE, HUD and the Owner hereby agree as follows:

1\. This Contract provides Housing Assistance Payments to the

Owner for the term specified (see #4 & #5 below) at the rent

levels in place upon expiration of the Expiring Contract.

These contract rents are listed in Exhibit A. HUD may, at its

sole discretion extend the term of this Contract.

2

2\. All terms of the Expiring Contract are renewed except for

those provisions relating to contract rents and rent

adjustments.

3\. There will be no rent adjustments during the term of this

Contract.

4\. The effective date of this Contract is

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_.

(The date inserted must be the day after the date of the

Expiring Contract. For example, if the Expiring Contract

expires on February 21, 1998, the date inserted must be

February 22, 1998).

5\. This Contract terminates on

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_.

6\. The maximum amount of the commitment for housing assistance

payments under this Contract is \$
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_.

7\. The Owner warrants that it has the legal right to this

Contract and to lease dwelling units covered by this Contract.

8\. The Owner warrants that the rental units to be leased under

the terms of the Contract are in good and tenantable condition

and are in decent, safe and sanitary condition.

This Contract is hereby executed with respect to the contract units

described in Exhibit A.

United States of America

Secretary of Housing and

Urban Development OWNER

By: \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_
By:\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

(Official Title) (Official Title)

Date:\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_
Date:\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

3

EXHIBIT A

IDENTIFICATION OF UNITS (\"CONTRACT UNITS\")

BY SIZE AND APPLICABLE CONTRACT RENTS

Number Number Contract

of Units of Bedrooms Rent

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

Office of Housing, Federal Housing Commissioner

HOUSING ASSISTANCE PAYMENTS

DEMONSTRATION RENEWAL CONTRACT

PHA as Contract Administrator

SECTION 8 PROJECT

NUMBER:\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

SECTION 8 PROJECT NUMBER OF EXPIRING CONTRACT

(if

different)\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

FHA PROJECT NUMBER: (if

applicable)\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

TYPE OF PROJECT: New

Construction:\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

Substantial

Rehabilitation:\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

Loan Management Set

Aside:\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

Property

Disposition:\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

This HOUSING ASSISTANCE PAYMENTS CONTRACT (\"Contract\") is entered

into between the \_\_\_\_\_\_\_\_\_\_\_
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

Public Housing Agency (\"PHA\") and
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_
(\"Owner\") pursuant to the

United States Housing Act of 1937, 42 U.S.C. 1437 et seq. and the

Departments of Veteran Affairs and Housing and Urban Development,

and Independent Agencies Appropriations Act, 1998, Pub. L. 105-65,

111 Stat. 1344, approved 10/27/97 (\"FY 1998 HUD Appropriations

Act\"). The purpose of this Contract is to provide housing

assistance payments on behalf of Eligible Families (\"Families\")

leasing decent, safe and sanitary units from the Owner.

Previously, the PHA and the Owner entered into a Housing Assistance

Payments Contract (\"Expiring Contract\") to provide section 8

assistance to the Owner for eligible families living in

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ (\"Project\").

This Expiring Contract expires on

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_,
199\_.

Since the FY 1998 HUD Appropriations Act gives HUD the authority to

renew Housing Assistance Payments Contracts for a period not to

exceed 180 days for those Owners electing to participate in the FHA

Multifamily Demonstration program, the PHA and the Owner desire to

renew for the period specified below the Expiring Contract EXCEPT

for the Contract Rent and Rent Adjustment Provisions.

THEREFORE, the PHA and the Owner hereby agree as follows:

1\. This Contract provides Housing Assistance Payments to the

Owner for the term specified (see #4 & #5 below) at the rent

levels in place upon expiration of the Expiring Contract.

These contract rents are listed in Exhibit A. The PHA may,

with HUD\'s prior approval, extend the term of this Contract.

2

2\. All terms of the Expiring Contract are renewed except for

those provisions relating to contract rents and rent

adjustments.

3\. There will be no rent adjustments during the term of this

Contract.

4\. The effective date of this Contract is

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_.

(The date inserted must be the day after the date of the

Expiring Contract. For example, if the Expiring Contract

expires on February 21, 1998, the date inserted must be

February 22. 1998)

5\. This Contract terminates on
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_.

6\. The maximum amount of the commitment for housing assistance

payments under this Contract is \$\_\_\_\_\_\_\_\_\_\_\_\_.

7\. The Owner warrants that it has the legal right to execute this

Contract and to lease dwelling units covered by this Contract.

8\. The Owner warrants that the rental units to be leased under

the terms of the Contract are in good and tenantable condition

and are in decent, safe and sanitary condition.

This Contract is hereby executed with respect to the contract units

described in Exhibit A.

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ OWNER

PHA

By:\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_
By:\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

(Official Title) (Official Title)

Date:\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_
Date:\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

3

EXHIBIT A

IDENTIFICATION OF UNITS (\"CONTRACT UNITS\")

BY SIZE AND APPLICABLE CONTRACT RENTS

Number Number Contract

of Units of Bedrooms Rent

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