**U.S. Department of Housing and Urban Development**

**Office of Housing**

All Secretary's Representative NOTICE H 99-32 (HUD)

All Senior Community Builders Issued: 12/1/99

All Multifamily HUB Directors Expires: 11/30/00

Public Housing HUB Office Directors

All Multifamily Program Center Directors

All Multifamily Project Managers Cross References:

All PIH Program Center Coordinators Notice H 98-34

Contract Administrators, Owners, and Managers Notice H 99-08

of Projects eligible for prepayment Notice H 99-15

> Revisions to Notice H 99-15, *Emergency Initiative to Preserve
> Below-Market Project-Based Section 8 Multifamily Housing Stock,* and
> Clarification of Certain Section 8 Policies in Notices H 98-34 and H
> 99-08

I.  **PURPOSE\...\...\...\...\...\...\...\...\...\...\...\...\...\...\.....3**

II. **APPLICABILITY\...\...\...\...\...\...\...\...\...\...\...\...\.....4**

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III. **AGGREGATE RENTS IN ALL EXPIRING CONTRACTS\...\...\...\....4**

IV. **MULTI-YEAR RENEWALS SUBJECT TO FUNDING AVAILABILITY\...5**

**V. INITIAL RENTS AT CONTRACT RENEWAL FOR CONTRACTS RENEWED**

> **PURSUANT TO 524(a) AND ARE NOT PARTICIPATING IN THE EMERGENCY
> INITIATIVE\...\...\...\...\...\...\...\...\...\...\....6**

VI. **SUBSEQUENT RENT ADJUSTMENTS FOR CONTRACT RENEWALS PURSUANT TO
    524(a) AND 524(b)\...\...\...\...\...\...\...\....7**

> **William C. Apgar**

**Assistant Secretary for Housing**

**Federal Housing Commissioner**

**HMIP: Distribution: W-3-1, R-1, R-2., R-3-(H)(RC),R-3-2, R-3-3, R-6,
R-6-2, R-7, R-7-2, R-8**

**ATTACHMENTS:**

SECTION 524(a) HAP CONTRACT (HUD AS CONTRACT ADMINISTRATOR)

\...\...\...\...\...\...\...\...\...\...\...\...\...\...\.....ATTACHMENT
1a

SECTION 524(a) HAP CONTRACT (PHA AS CONTRACT ADMINISTRATOR)

\...\...\...\...\...\...\...\...\...\...\...\...\...\...\.....ATTACHMENT
1b

SECTION 524(b)(1) HAP CONTRACT (HUD AS CONTRACT
ADMINISTRATOR)\...\...\...\...\...\...\...\...\...\...\...ATTACHMENT 2A

SECTION 524(b)(1) HAP CONTRACT (PHA AS CONTRACT
ADMINISTRATOR)\...\...\...\...\...\...\...\...\...\...\...ATTACHMENT 2B

ANNUAL CONTRIBUTIONS CONTRACT\...\...\...\...\...\...ATTACHMENT 3

OWNER'S FIVE-YEAR RENEWAL NOTIFICATION LETTER..ATTACHMENT 4

**I. PURPOSE**

> This Notice revises and/or clarifies certain provisions of 1) HUD
> Notice H 99-15, *Emergency Initiative to Preserve Below-Market
> Project-Based Section 8 Multifamily Housing Stock;* 2) Notice H 98-34,
> *Project-based Section 8 Contracts Expiring in Fiscal Year 1999;* and
> 3) Notice H 99-08, *Revision to Notice H 98-34 (HUD) on Project-based
> Section 8 Contracts Expiring in Fiscal Year 1999.* The Guidance in
> this Notice is consistent with the provisions of section 524 of the
> Multifamily Assisted Housing and Reform Act of 1997 (MAHRA), as
> amended by section 531 of the FY 2000 Appropriations Act. HUD will be
> issuing comprehensive guidance in the near future with respect to the
> implementation of Section 8 renewal provisions in the FY 2000 HUD
> Appropriations Act.
>
> The authority for renewing rents in projects that were subject to
> Section 524(a)(1) of MAHRA is now addressed in the new Section 524(a).
> The authority for renewing rents in projects that were subject to
> section 524(a)(2) of MAHRA are now addressed in section 524(b)(1).

This Notice:

-   Revises the instructions for conducting a comparability analysis
    where the owner is requesting a contract renewal without
    restructuring, to include units "in the expiring Section 8
    contract(s)" instead of "all Section 8 units." See Part III below;

-   Makes the five-year renewal contract that is required for projects
    that are participating in the Mark-up-to-Market initiative (formerly
    Emergency Initiative) available to other owners;

-   Provides forms of contracts to be used in FY 2000 renewals.

-   Requires at the time of initial renewal of a Section 8 contract with
    rents that are below market, but which is not in the
    Mark-Up-To-Market initiative, that the current rents be adjusted by
    an OCAF or budget-based method, subject to HUD approval and provided
    the new rent does not exceed comparable market rent.

-   Provides instructions for adjusting rents at the time of initial
    renewals and for subsequent rent adjustments.

> ***All changes are effective as of the date of this notice.***

**II. APPLICABILITY.**

> This Notice applies to all Multifamily Housing Projects with
> project-based Section 8 assistance, with the exception of Section 8
> Moderate Rehabilitation projects administered by the Office of Public
> and Indian Housing and Section 8 Moderate Rehabilitation Single Room
> Occupancy Projects administered by the Office of Community Planning
> and Development.

**III. AGGREGATE RENTS IN ALL EXPIRING CONTRACTS.**

> Use the Worksheet for Option 1, Method 1, when requesting a contract
> renewal without restructuring under Section 524(a). Under Notice H
> 98-34 and H 99-08, the instructions were to use "all the Section 8
> units in the project" when comparing Section 8 rent potential with
> comparable market rent potential. The new instructions are to use only
> the Section 8 units under the expiring contract(s) for purposes of the
> comparability analysis.

IV. **MULTIPLE YEAR RENEWALS SUBJECT TO FUNDING AVAILABILITY**

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A.  Contract renewals of five years are required for projects that are
    participating in the Mark-Up-To-Market initiative and are available
    for other contract renewals, subject to the availability of funding.

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B.  Subsequent rent renewals in the remaining years of a multiple year
    contract for projects pursuant to both 524(a) and 524(b) will be
    adjusted annually:

> 1\. by the OCAF applicable for the State in which the project is
> located, or

2.  at the request of an owner, and subject to HUD approval, by the
    budget-based method.

> **THE COMPREHENSIVE GUIDANCE TO BE ISSUED IN THE NEAR FUTURE WILL
> DISCUSS COMPARABLE MARKET RENT LIMITATIONS WHICH WILL BE APPLICABLE TO
> SUCH ADJUSTMENTS IN THE FUTURE.**

C.  Tenant Notification

> The FY 2000 Appropriations Act amended the tenant notification
> requirements in Section 8(c)(8). The law no longer provides that
> owners must provide notification in cases where they intend to renew
> nor the specific language that was required in such a notification.
> Therefore the tenant notification letter in attachment 3A of Notice H
> 99-8 should no longer be used. Note, however, that the statute
> requires a one-year notification prior to any termination of the
> contract by the owner. Under the new law, not less than one year
> before termination of any contract for Section 8 project-based
> assistance the owner must provide notice to the Secretary and the
> tenants involved of the proposed termination. The notification needs
> to include a statement that: "If the Congress makes the funds
> available, the owner and the Secretary may agree to a renewal of the
> contract, thus avoiding termination, and that in the event of
> termination, HUD will provide tenant-based assistance to all eligible
> residents, enabling them to choose the place they wish to rent, which
> is likely to include the dwelling unit in which they currently
> reside". Owners who receive a renewal contract for one year, and may
> not renew the contract, should, upon execution of the contract,
> provide the one-year termination notification. HUD strongly recommends
> that the owner use the exact statutory language quoted above.
>
> Upon signing a multiple year contract renewal, owners must notify
> tenants in writing that they have agreed to a multiple year contract
> renewal agreement with the Department.
>
> The letter notifying the tenant of the multiple year contract renewal
> must state that the contract is subject to the availability of
> appropriations and shall advise the tenants that they will receive
> notification not less than one year before any contract termination.
> See Attachment 4 to this Notice.

**V. INITIAL RENTS AT CONTRACT RENEWAL FOR CONTRACTS EXPIRING PURSUANT
TO 524(a) AND ARE NOT PARTICIPATING IN THE MARKING-UP-TO-MARKET
INITIATIVE.**

> Notice H 98-34 stated that initial rents for renewals under 524(a)(1)
> would be set at current rent levels, unless the owner was requesting a
> budget-based rent increase, which did not exceed comparable market
> rents. This notice makes a change to that policy. At the time of
> initial renewal for contracts subject to 524(a) (which replaced
> 524(a)(1) in the new law) that are not participating in the
> Mark-Up-To-Market initiative, current rent levels shall be adjusted
> by:
>
> A. An OCAF, or

B.  At the request of the owner, a budget-based increase, as approved by
    HUD.

> The initial rents for renewals under section 524(a) may not exceed
> comparable market rents.

VI. **SUBSEQUENT rent adjustments FOR contract renewals**

**pursuant to 524(a) and 524(b).**

> Generally, a comparable market rent study for rents determined
> pursuant to 524(a) is not required for subsequent contract renewals
> this year. Field Offices will adjust the owner's existing rents by the
> OCAF applicable for the jurisdiction in which the project is located.
> At the request of the owner, and subject to HUD approval, rents may be
> adjusted by the budget-based method. **The comprehensive guidance to
> be issued in the near future will discuss comparable market rent
> limitations which will be applicable to such adjustments in future**.

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

William C. Apgar

Assistant Secretary for Housing-

> Federal Housing Commissioner

**ATTACHMENT 1A**

**Section 524(a) Contract**

**U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT**

**Office of Housing, Federal Housing Commissioner**

**HOUSING ASSISTANCE PAYMENTS**

**RENEWAL CONTRACT**

**[HUD as Contract Administrator]{.underline}**

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

SECTION 8 PROJECT NUMBER OF EXPIRING CONTRACT

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

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

This HOUSING ASSISTANCE PAYMENTS CONTRACT (\"Contract\") is entered into
between the Department of Housing and Urban Development and
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_(\"Owner\")
pursuant to the United States Housing Act of 1937, 42 U.S.C. 1437 [et
seq.]{.underline}, and section 524(a) of the Multifamily Assisted
Housing Reform and Affordability Act of 1997, 42 U.S.C. 1437f note
(MAHRA), as amended by Section 531 of the Departments of Veterans
Affairs and Housing and Urban Development, and Independent
Appropriations Act, 2000, Pub. L. No. 106-74, 113 Stat. 1047.

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

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.  The Contract shall run for a \_\_\_\_\_\_\_\_\_\_ year period,
    beginning on \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ and ending on
    \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_; provided, however, that payments
    for each year after the first year of this Renewal Contract shall be
    subject to the availability of appropriations for such year.

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2.  For projects where rents are increased to market levels pursuant to
    Marking-up-to-Market, the contract term must be at least five years.

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3.  For Sections 236 and 221(d)(3) BMIR projects, for a five-year period
    commencing on (the effective date of this Contract) and ending on, ,
    the owner agrees not to prepay any FHA-insured mortgage on this
    project, except where HUD, in its sole discretion, approves the
    prepayment as a component of a transaction whereby the project is
    preserved as affordable housing.

**(Note: This provision is only applicable to projects that have had
rents increased to market levels under the Marking-up-to-Market
Initiative.)**

4.  All terms of the Expiring Contract are renewed except for those
    provisions relating to Contract Rents and rent adjustments.

5.  After rent levels have initially been established under section
    524(a) of MAHRA, all subsequent adjustments to Contract Rents shall
    be determined in accordance with section 524(c) of MAHRA.

**(Note: For projects in which rents are increased to comparable market
rents under the Marking-up-to-Market initiative, all subsequent rent
adjustments to contract rents for the five-year period of the contract
shall be determined by application of an operating cost adjustment
factor.)**

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 this Contract are in decent, safe and sanitary condition, as
defined by HUD.

9.  In accordance with section 8(c)(8) of the United States Housing Act
    of 1937, the owner shall provide a written notice to HUD and each
    assisted family not less than one year before termination of the
    Contract. The notice shall comply with HUD regulations and other
    requirements, including any amendments or changes in the law or HUD
    requirements.

> If the owner fails to provide this notice in accordance with HUD
> requirements, the owner may not increase the tenant rent payment for
> any assisted family until such time as the owner provides the written
> notice and one year has elapsed from the date the notice was provided.

10. This contract shall be construed in accordance with all applicable
    statutory requirements, and subject to the note in paragraph 5
    hereof for Mark-up-to-Market projects, all HUD regulations and other
    requirements, including any amendments or changes in the law or HUD
    requirements.

This Contract is hereby executed with respect to the contract units
described in Exhibit A.

United States of America Owner

Secretary of Housing and

Urban Development

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

(Official Title) (Official Title)

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

**EXHIBIT A**

**IDENTIFICATION OF UNITS (\"CONTRACT UNITS\")**

**BY SIZE AND APPLICABLE CONTRACT RENTS**

Number Number Contract

of Units of Bedrooms Rent

**ATTACHMENT 1B**

**Section 524(a) Contract**

**U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT**

**Office of Housing, Federal Housing Commissioner**

**HOUSING ASSISTANCE PAYMENTS**

**RENEWAL CONTRACT**

**[PHA as Contract Administrator]{.underline}**

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

SECTION 8 PROJECT NUMBER OF EXPIRING CONTRACT

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

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

This HOUSING ASSISTANCE PAYMENTS CONTRACT (\"Contract\") is entered into
between the
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_
(\"PHA\") and
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_(\"Owner\")
pursuant to the United States Housing Act of 1937, 42 U.S.C. 1437 [et
seq.]{.underline}, and section 524(a) of the Multifamily Assisted
Housing Reform and Affordability Act of 1997, 42 U.S.C. 1437f note
(MAHRA), as amended by Section 531 of the Departments of Veterans
Affairs and Housing and Urban Development, and Independent
Appropriations Act, 2000, Pub. L. No. 106-74, 113 Stat. 1047.

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

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.  The Contract shall run for a \_\_\_\_\_\_\_\_\_ year period,
    beginning on \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ and ending
    on \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_; provided, however, that
    payments for each year after the first year of this renewal Contract
    shall be subject to the availability of appropriations for such
    year**.**

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2.  For projects where rents are increased to market levels pursuant to
    Marking-up-to-Market, the contract term must be at least five years.

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3.  For Sections 236 and 221(d)(3) BMIR projects, for a five-year period
    commencing on (the effective date of this Contract) and ending on, ,
    the owner agrees not to prepay any FHA-insured mortgage on this
    project, except where HUD, in its sole discretion, approves the
    prepayment as a component of a transaction whereby the project is
    preserved as affordable housing.

**(Note: This provision is only applicable to projects that have had
rents increased to market levels under the Marking-up-to-Market
Initiative.)**

4.  All terms of the Expiring Contract are renewed except for those
    provisions relating to Contract Rents and rent adjustments.

5.  After rent levels have initially been established under section
    524(a) of MAHRA, all subsequent adjustments to Contract Rents shall
    be determined in accordance with section 524(c) of MAHRA.

**(Note: For projects in which rents are increased to comparable market
rents under the Marking-up-to-Market Initiative, all subsequent rent
adjustments to contract rents for the five-year period of the contract
shall be determined by application of an operating cost adjustment
factor.)**

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 this Contract are in decent, safe and sanitary condition, as
defined by HUD.

9.  In accordance with section 8(c)(8) of the United States Housing Act
    of 1937, the owner shall provide a written notice to HUD and each
    assisted family not less than one year before termination of the
    Contract. The notice shall comply with HUD regulations and other
    requirements, including any amendments or changes in the law or HUD
    requirements.

> If the owner fails to provide this notice in accordance with HUD
> requirements, the owner may not increase the tenant rent payment for
> any assisted family until such time as the owner provides the written
> notice and one year has elapsed from the date the notice was provided.

10. This contract shall be construed in accordance with all applicable
    statutory requirements, and subject to the note in paragraph 5
    hereof for Marking-up-to-Market projects, all HUD regulations and
    other requirements, including any amendments or changes in the law
    or HUD requirements.

This Contract is hereby executed with respect to the contract units
described in Exhibit A.

Public Housing Agency Owner

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

(Official Title) (Official Title)

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

**EXHIBIT A**

**IDENTIFICATION OF UNITS (\"CONTRACT UNITS\")**

**BY SIZE AND APPLICABLE CONTRACT RENTS**

Number Number Contract

of Units of Bedrooms Rent

**ATTACHMENT 2A**

**Section 524(b)(1) Contract**

**U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT**

**Office of Housing, Federal Housing Commissioner**

**HOUSING ASSISTANCE PAYMENTS**

**RENEWAL CONTRACT**

**[HUD as Contract Administrator]{.underline}**

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

SECTION 8 PROJECT NUMBER OF EXPIRING CONTRACT

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

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

This HOUSING ASSISTANCE PAYMENTS CONTRACT (\"Contract\") is entered into
between the Department of Housing and Urban Development and
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_(\"Owner\")
pursuant to the United States Housing Act of 1937, 42 U.S.C. 1437 [et
seq.]{.underline}, and section 524(b)(1) of the Multifamily Assisted
Housing Reform and Affordability Act of 1997, 42 U.S.C. 1437f note
(MAHRA), as amended by Section 531 of the Departments of Veterans
Affairs and Housing and Urban Development, and Independent
Appropriations Act, 2000, Pub. L. No. 106-74, 113 Stat. 1047.

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

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.  The Contract shall run for a \_\_\_\_\_\_\_\_\_\_ year period,
    beginning on \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ and ending on
    \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_; provided, however, that payments
    for each year after the first year of this Renewal Contract shall be
    subject to the availability of appropriations for such year.

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2.  All terms of the Expiring Contract are renewed except for those
    provisions relating to Contract Rents and rent adjustments.

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3.  After rent levels have initially been established under section
    524(b)(1) of MAHRA, all subsequent adjustments to Contract Rents
    shall be determined in accordance with section 524(c) of MAHRA.

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4.  The maximum amount of the commitment for housing assistance payments
    under this Contract is \$\_\_\_\_\_\_\_\_\_\_\_\_.

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```
5.  The Owner warrants that it has the legal right to execute this
    Contract and to lease dwelling units covered by this Contract.

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```
6.  The Owner warrants that the rental units to be leased under the
    terms of this Contract are in decent, safe and sanitary condition,
    as defined by HUD.

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7.  In accordance with section 8(c)(8) of the United States Housing Act
    of 1937, the owner shall provide a written notice to HUD and each
    assisted family not less than one year before termination of the
    Contract. The notice shall comply with HUD regulations and other
    requirements, including any amendments or changes in the law or HUD
    requirements.

> If the owner fails to provide this notice in accordance with HUD
> requirements, the owner may not increase the tenant rent payment for
> any assisted family until such time as the owner provides the written
> notice and one year has elapsed from the date the notice was provided.

8.  This contract shall be construed in accordance with all applicable
    statutory requirements, and all HUD regulations and other
    requirements, including any amendments or changes in the law or HUD
    requirements.

This Contract is hereby executed with respect to the contract units
described in Exhibit A.

United States of America Owner

Secretary of Housing and

Urban Development

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

(Official Title) (Official Title)

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

**EXHIBIT A**

**IDENTIFICATION OF UNITS (\"CONTRACT UNITS\")**

**BY SIZE AND APPLICABLE CONTRACT RENTS**

Number Number Contract

of Units of Bedrooms Rent

**Section 524(b)(1) Contract**

**U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT**

**Office of Housing, Federal Housing Commissioner**

**HOUSING ASSISTANCE PAYMENTS**

**RENEWAL CONTRACT**

**[PHA as Contract Administrator]{.underline}**

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

SECTION 8 PROJECT NUMBER OF EXPIRING CONTRACT

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

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

This HOUSING ASSISTANCE PAYMENTS CONTRACT (\"Contract\") is entered into
between the
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_
(\"PHA\") and
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_(\"Owner\")
pursuant to the United States Housing Act of 1937, 42 U.S.C. 1437 [et
seq.]{.underline}, and section 524(b)(1) of the Multifamily Assisted
Housing Reform and Affordability Act of 1997, 42 U.S.C. 1437f note
(MAHRA), as amended by Section 531 of the Departments of Veterans
Affairs and Housing and Urban Development, and Independent
Appropriations Act, 2000, Pub. L. No. 106-74, 113 Stat. 1047.

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

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.  The Contract shall run for a \_\_\_\_\_\_\_\_\_\_\_\_ year period,
    beginning on \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ and ending on
    \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_; provided, however, that
    payments for each year after the first year of this Renewal Contract
    shall be subject to the availability of appropriations for such
    year.

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2.  All terms of the Expiring Contract are renewed except for those
    provisions relating to Contract Rents and rent adjustments.

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3.  After rent levels have initially been established under section
    524(b)(1) of MAHRA, all subsequent adjustments to Contract Rents
    shall be determined in accordance with section 524(c) of MAHRA.

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4.  The maximum amount of the commitment for housing assistance payments
    under this Contract is \$\_\_\_\_\_\_\_\_\_\_\_\_.

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5.  The Owner warrants that it has the legal right to execute this
    Contract and to lease dwelling units covered by this Contract.

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6.  The Owner warrants that the rental units to be leased under the
    terms of this Contract are in decent, safe and sanitary condition,
    as defined by HUD.

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7.  In accordance with section 8(c)(8) of the United States Housing Act
    of 1937, the owner shall provide a written notice to HUD and each
    assisted family not less than one year before termination of the
    Contract. The notice shall comply with HUD regulations and other
    requirements, including any amendments or changes in the law or HUD
    requirements.

> If the owner fails to provide this notice in accordance with HUD
> requirements, the owner may not increase the tenant rent payment for
> any assisted family until such time as the owner provides the written
> notice and one year has elapsed from the date the notice was provided.

8.  This contract shall be construed in accordance with all applicable
    statutory requirements, and all HUD regulations and other
    requirements, including any amendments or changes in the law or HUD
    requirements.

This Contract is hereby executed with respect to the contract units
described in Exhibit A.

Public Housing Agency Owner

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

(Official Title) (Official Title)

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

**EXHIBIT A**

**IDENTIFICATION OF UNITS (\"CONTRACT UNITS\")**

**BY SIZE AND APPLICABLE CONTRACT RENTS**

Number Number Contract

of Units of Bedrooms Rent

**ATTACHMENT 3**

**U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT**

**SECTION 8 HOUSING ASSISTANCE PAYMENTS PROGRAM**

**ANNUAL CONTRIBUTIONS CONTRACT RENEWAL**

EFFECTIVE DATE OF THIS CONTRACT
RENEWAL:\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

MASTER SECTION 8 ACC NUMBER AND
DATE:\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

HAP RENEWAL CONTRACT NUMBER AND
DATE:\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

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

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

This ANNUAL CONTRIBUTIONS CONTRACT RENEWAL (\"ACC\") is entered into
between the U.S. Department of Housing and Urban Development (\"HUD\")
and (\"PHA\") pursuant to the United States Housing Act of l937, 42
U.S.C. 1437, et seq. and the Multifamily Assisted Housing Reform and
Affordability Act of 1997, 42 U.S.C. 1437f note (MAHRA), as amended by
the Departments of Veterans Affairs and Housing and Urban Development,
and Independent Appropriations Act, 2000, Pub. L. No. 106-74, 113 Stat.
1047.

The purpose of this ACC is to provide annual contributions to the PHA in
order for the PHA to make housing assistance payments to the Owner of
the Project (\"Owner\") on behalf of Eligible Families (\"Families\")
leasing decent, safe and sanitary units from the Owner.

Previously, HUD and the PHA entered into an Annual Contributions
Contract (\"Expiring ACC\") to provide annual contributions to the PHA
on behalf of eligible families living in
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ (\"Project\").

The Expiring ACC expires on \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_.

HUD and the PHA desire to renew this Expiring ACC **EXCEPT for those
provisions relating to Annual Contributions and Periodic Adjustments to
Contract Rents.**

**THEREFORE, HUD and the PHA hereby agree as follows:**

1\. HUD will make annual contributions (\"ACC Payments\") to the PHA so
that the PHA can renew its Housing Assistance Payments (HAP) Contract
with the Owner. These ACC Payments will be used by the PHA to make
housing assistance payments on behalf of eligible families leasing
decent, safe and sanitary units in the Project from the Owner.

2.  The PHA will renew its expiring section 8 HAP Contract with the
    Owner. The PHA warrants that it will use the HAP Renewal Contract
    form prescribed by HUD.

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3.  All terms of the Expiring ACC are renewed except for those
    provisions relating to the computation of the annual contributions
    and the periodic adjustments of contract rents.

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4.  In the Expiring ACC, Section (b) of the provision dealing with
    Annual Contributions is hereby replaced with the following:

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(b) [Computation of Annual Contribution.]{.underline} Subject to the
    maximum dollar limitation in this ACC, HUD shall make contributions
    to the PHA for the term of this ACC with respect to the Project in
    an amount equal to the sum of the following (subject to reduction by
    the amount of any Project Receipts other than annual contributions,
    which Receipts shall be available for Project Expenditures):

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(1) The maximum amount of the commitment for housing assistance payments
    payable under the HAP Renewal Contract.

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(2) The allowance, in the amount approved by HUD, for costs of
    administration.

5\. The maximum amount of the commitment for annual contributions under
this ACC is \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_.

6\. The Effective Date of this ACC is
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_.

7\. This ACC expires on
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_.

**(The date inserted must correspond to the expiration date of the HAP
Renewal Contract.)**

8.  The PHA warrants that the rental units supported by this ACC and the
    HAP Renewal Contract are in decent, safe and sanitary condition, as
    defined by HUD.

United States of America

Secretary of Housing and

Urban Development PHA \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

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

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

(Official Title) (Official Title)

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

**ATTACHMENT 4**

**Owner's Five-Year Renewal Notification Letter**

***[(Date)]{.underline}***

Dear Resident:

This is to inform you that we have entered into a five- year agreement
with the Department of Housing and Urban Development (HUD) to renew the
Section 8 HAP contract for ***[(name of project),]{.underline}***
provided that Congress makes funds available.

Congress has provided money to renew expiring Section 8 contracts and we
anticipate that they will continue to do so in the future. What this
means to you the tenant, is that you can plan on remaining in your unit
for at least the next five years.

You will receive written notification one year prior to the expiration
of this contract.

If you have any questions, please call ***[(local HUD
Office)]{.underline}*** at ***[(HUD office phone
number)]{.underline}***. You may also call ***[(local group offering
tenant assistance)]{.underline}*** at ***[(phone
number).]{.underline}***

Sincerely,

***Owner***

cc: Local HUD Office