13-3. OWNER’S APPEAL OF HUD’S REFUSAL TO RENEW A SECTION 8 HAP CONTRACT
HUD Section 8 Renewal Policy Guidebook · 2026 edition · updated 2026-07-29 · United States
If HUD refuses to renew an owner’s Section 8 HAP contract, the following appeal process shall be followed. In the case of an appeal, it is important to take all steps necessary to protect the residents. This may include executing any short-term contract to complete the appeal process.
A. The AE will:
Provide a notice, in writing, to the owner notifying them of the reason(s) for refusal to renew the Section 8 HAP Contract.
Provide a short-term renewal of the contract pending review of any appeal, if the contract is about to expire.
Provide notice to tenants of the creation of a CDE Plan.
B. The owner has 30 calendar days from receipt of this notice to provide written objections to the Satellite Office Director or to cure the problems identified. If the owner does not submit written objections or cure the problems identified during that period, the decision will become a final determination under Section 516(c) of MAHRA.
C. If the owner submits written objections or asserts that the problems identified have been cured, the AE will consider the matter, review the owner’s action, if any, and send the owner a letter notifying it of the final decision to affirm, modify, or reverse the refusal to renew and setting forth the rationale for the final decision.
D. Within 10 days of receiving the final decision, the owner may submit a written appeal to the AE contesting the decision and requesting a conference with the Regional Center that has jurisdiction over the project to discuss the issues.
E. A representative of the Regional Center will meet with the owner at a mutually agreeable time, but no later than 10 calendar days after the owner requests the meeting.
F. If the owner wants to provide additional information, a short but mutually agreeable deadline will be established for submission of the material.
G. Within 20 days after the conference with the Regional Center, or 20 days after any agreed upon extension of time for submission of additional materials, the Regional Center will send the owner a letter advising it of the decision to reverse, modify or affirm the original decision.
H. The Regional Center Director or his/her designee will review any appeal, conduct the conference, and issue the written decision. The official designated will be one who was not directly involved in making the decision being appealed. The reviewing official’s decision is a final determination.
I. Based on the outcome of the appeal, the AE will:
- Renew the contract if the owner subsequently becomes compliant or prevails with the appeal and the Regional Center or Satellite Office changes its decision to terminate the contract.
Chapter Thirteen – Published March 2023
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- Begin the process for obtaining regular Housing Choice Vouchers (HCVs) if the owner does not prevail in their appeal and the Regional Center or Satellite Office upholds its decision to terminate the contract. The instructions in Notice PIH 2001-41 (HA), Section 8 Tenant-Based Assistance (Enhanced and Regular Housing Choice vouchers) for Housing conversion actions – Policy and Guidance, or any successor notice, must be followed. Notice PIH 2001-41 (HA) can be found at:
http://www.hud.gov/offices/adm/hudclips/notices/pih/01pihnotices.cfm.
Monitor the processing of the vouchers with the assigned AE/CA, PIH and the owner, until the vouchers have been issued.
Terminate the contract after vouchers have been issued to the eligible residents.
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Ask AI about this code▸ Contents — HUD Section 8 Renewal Policy Guidebook
- U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
- SPECIAL ATTENTION OF
- TRANSMITTAL
- A. Purpose
- Explanation of Changes
- Section 8 Renewal Policy Guidebook
- Office of Multifamily Housing
- Table of Contents
- Chapter One
- Introduction
- Chapter 1: Introduction
- Chapter 2: Section 8 Renewals
- Chapter 3: Option One: Mark-Up-To-Market
- Chapter 4: Option Two: Contract Renewals For Other Projects wi…
- Chapter 5: Option Three: Referral to Recap
- Chapter 6: Option Four: Renewal of Projects Exempt from or not…
- Chapter 7: Option Five: Renewal of Portfolio Reengineering Dem…
- Chapter 8: Option Six: Opt-Outs
- Chapter 9: Rent Comparability Studies
- Chapter 10: Residual Receipts
- Chapter 11: Tenant Issues
- Chapter 12: Physical Condition of the Project
- Chapter 13: HUD’s Refusal to Renew Section 8 Contracts
- Chapter 14: Rural Housing Service (RHS) Section 515/8
- Chapter 15: Section 8 Preservation Efforts
- — Chapter 16: “Old Regulation” State Housing Finance Agency Pr…
- 1-2. LEGISLATIVE HISTORY
- 1-3. RULEMAKING
- 1-4. ADMINISTRATIVE POLICY
- 1-5. APPLICABILITY
- 1-6. PAPERWORK REDUCTION ACT
- Chapter Two
- Section 8 Renewals
- 2-1. INTRODUCTION
- 2-2. OWNER OPTIONS
- 2-3. TYPES OF RENEWALS
- 2-4. EARLY TERMINATION OF A CONTRACT
- 2-5. RENT COMPARABILITY STUDY (RCS)
- Note: The AE/CA shall not lower the comparable market rents in…
- Note: A RCS is not required at any subsequent renewal of an EL…
- 2-6. CONTRACTS
- 2-8. SHORT-TERM CONTRACT RENEWALS
- 2-10. COMBINING CONTRACTS
- 2-11. REQUEST FOR A CONTRACT EXTENSION
- 2-12. DISTRIBUTIONS
- Note: The conditions listed above for receiving access to incr…
- 2-13. RENT ADJUSTMENTS
- 2-14. OPERATING COST ADJUSTMENT FACTOR (OCAF)
- 2-15. BUDGET-BASED RENT ADJUSTMENT REQUESTS
- 2-16. INCREASES IN DEPOSITS TO THE RESERVE FOR REPLACEMENT
- 2-17. PROCESSING INSTRUCTIONS
- Note: If the project has a budget approved by the AE/CA less t…
- Note: HUD does not accept the RHS utility analysis. The owner …
- 2-18. WAIVERS
- 2-19. DUNS NUMBER
- Chapter Three
- 3-1. OVERVIEW
- 3-3. OPTION ONE-A ENTITLEMENT MARK-UP-TO-MARKET ELIGIBILITY
- Note: Nonprofit controlled for profit entities as described in…
- 3-4. 150 PERCENT RENT CAP FOR OPTION ONE-A
- 3-5. EXCEEDING THE 150 PERCENT OF FMR CAP
- 3-6. OPTION ONE-B DISCRETIONARY MUTM ELIGIBILITY
- Note: Non-profit owned projects that meet one of the three cri…
- 3-7. RENEWAL REQUESTS
- 3-8. PROCESSING INSTRUCTIONS
- 3-9. ANNUAL RENT ADJUSTMENTS DURING A MULTIYEAR CONTRACT
- Chapter Four
- 4-1. ELIGIBILITY
- Note: Projects currently renewed under either Option Two or Op…
- 4-2. CONTRACT RENEWAL
- 4-3. ANNUAL RENT ADJUSTMENTS DURING A MULTIYEAR CONTRACT
- 4-4. PROCESSING INSTRUCTIONS
- Chapter Five
- Note: WAIVERS TO CHAPTER FIVE WILL BE IN ACCORDANCE WITH RECAP…
- Note: Risk Sharing Projects do not meet the definition of “eli…
- 5-2. BINDING COMMITMENT
- 5-3. ENTRY INTO RECAP
- Note: In cases where a CA makes the determination that contrac…
- 5-4. CONTRACT RENEWALS — RENT OR DEBT RESTRUCTURING
- 5-5. SUBSEQUENT RENEWALS
- 5-6. “WATCH LIST” MTM PROJECTS
- 5-7. GENERAL INFORMATION
- Chapter Six
- 6-1. ELIGIBILITY
- Note: State and local government financed projects that are no…
- Note: In cases where referral to Recap is necessary, CAs must …
- Note: Section 202 and 811 Capital Advance projects are not eli…
- Note: Projects financed under the risk-sharing loan programs u…
- 6-2. RENEWALS
- Reminder: For projects (including 202 projects) that are being…
- 6-3. RENT ADJUSTMENTS FOR MULTI-YEAR CONTRACTS
- 6-4. SECTION 202 REFINANCINGS
- Chapter Seven
- 7-1. ELIGIBILITY
- Portfolio Reengineering Demonstration Program Projects
- 7-2. RENEWAL OF PORTFOLIO REENGINEERING DEMONSTRATION PROJECTS
- FIVE
- Note: Owners can request that the existing Demo Program Use Ag…
- 7-4. PROCESSING INSTRUCTIONS FOR DEMONSTRATION PROJECTS
- 7-5. PRESERVATION PROJECTS (LIHPRHA AND ELIHPA)
- 7-6. OWNER’S SUBMISSION FOR PRESERVATION PROJECTS
- Note: Owners can request that the existing Preservation Use Ag…
- 7-7. PROCESSING INSTRUCTIONS FOR PRESERVATION PROJECTS
- 7-8. PROJECT SPECIFIC RENTS (PSRS)
- Chapter Eight
- 8-1. OVERVIEW
- 8-2. OWNER REQUIREMENTS FOR TENANT NOTIFICATION
- 8-3. PROCESSING INSTRUCTIONS
- Note: If proper notification was not provided, the owner must …
- Chapter Nine
- 9-1. BACKGROUND
- 9-2. APPLICABILITY OF CHAPTER NINE
- 9-3. ROAD MAP TO CHAPTER NINE
- 9-4. ALTERNATIVES TO RENT COMPARABILITY STUDY
- 9-6. METHOD TWO: COMPARING PROPOSED SECTION 8 RENTS WITH RENTS…
- 9-7. PREPARING A RENT COMPARABILITY STUDY
- 9-8. APPRAISER QUALIFICATIONS
- 9-9. ANALYZING THE SUBJECT PROJECT
- Note: Appraisers should not take into consideration demographi…
- Note: Government boundaries like state or county lines often d…
- 9-10. SELECTING COMPARABLE UNITS
- 9-11. COLLECTING AND DOCUMENTING DATA ON COMPARABLE UNITS
- 9-12. COMPUTING ADJUSTED RENTS FOR COMPARABLE UNITS
- 9-13. DERIVING ESTIMATED MARKET RENTS
- 9-14. PROCEDURE FOR MANDATORY MARKET RENT THRESHOLD
- Example Project in ZIP code 76469
- 9-15. HUD REVIEW OF RENT COMPARABILITY STUDY
- 9-16. INITIAL AND SUBSTANTIVE REVIEW OF OWNER’S RCS
- 9-17. COMMUNICATING RESULTS OF HUD/CA REVIEWS
- 9-18. OWNER APPEALS
- 9-19. IMPOSING SANCTIONS ON APPRAISERS
- APPENDICES
- - Instructions for Completing the HUD Form 92273 S8
- Part A: Rents Charged (lines 1 through 5)
- Part B. Design, Location, Condition (lines 6 through 10)
- Part C. Unit Equipment/Amenities (lines 11 through 23)
- Part D. Site Equipment/Amenities (lines 24 through 32)
- Part E. Utilities (lines 33 through 39)
- Part F. Adjustments Recap (lines 40 through 43)
- Part G. Adjusted Rents (lines 44 through 45)
- Required Contents of a Rent Comparability Study
-
▸ Comparable Project Profile
Overview- Address
- Place Photo Below:
- By my/our signature below, I/We certify that, to the best of m…
- Sample RCS Appraiser’s Transmittal Letter
- Re: Rent Comparability Study/[Project Name]
- Mandatory Market Rent Threshold Test
- Sample Owner’s Cover Letter
- RCS Submittal Cover Letter for [Project Name]
- Owner’s Materials
- RCS Materials
- Mandatory Market Rent Threshold Materials
- Owner’s Signature & Date
- Notes for Rent Grid Analysis and Triggers for Secondary Review
- Sample Issues Memo from Substantive Reviewer
- Special Project Types
- Forms Used in Preparation and Review of an RCS
- Chapter Ten
- Residual Recei pts
- Chapter Eleven
- 11-1. DEFINITIONS
- 11-2. HOUSING CONVERSION ACTIONS
- 11-3. TENANT PROTECTIONS
- 11-4. OWNER NOTIFICATION REQUIREMENTS
- Note: The one-year notification is not required when an owner …
- Note: Taping the Notice to the outside of each unit is not acc…
- 11-5. LIMITED ENGLISH PROFICIENCY ASSISTANCE
- 11-6. EFFECTIVE COMMUNICATIONS
- ( Date )
- THIS LETTER IS TO NOTIFY YOU THAT WE DO NOT INTEND TO RENEW TH…
- HUD Web
- ( Date )
- THIS LETTER IS TO NOTIFY YOU THAT WE INTEND TO RENEW THE CURRE…
- HUD Web
- ( Date )
- HUD Web
- Chapter Twelve
- 12-1. PHYSICAL CONDITION
- 12-2. EXIGENT HEALTH AND SAFETY (EH&S) DEFICIENCY NOTICE AND P…
- Note: hud@work is an internal site with no access for the publ…
- Chapter Thirteen
- 13-1. HUD’S REFUSAL TO RENEW A SECTION 8 HAP CONTRACT
- 13-2. HUD’S DECISION NOT TO RENEW THE EXPIRING CONTRACT
- 13-3. OWNER’S APPEAL OF HUD’S REFUSAL TO RENEW A SECTION 8 HAP…
- 13-4. HUD’S TENANT NOTIFICATION OF REFUSAL TO RENEW
- Chapter Fourteen
- 14-1. OVERVIEW
- 14-2. PROCESSING
- Note: HUD does not accept the RHS utility analysis. The owner …
- Note: If the owner of the project is a for profit who is not r…
- Note: RHS projects are exempted from debt restructuring under …
- Chapter Fifteen
- Section 8 Preservation Efforts
- 15-1. OVERVIEW
- PART ONE: DEFINITION OF NONPROFIT OWNER
- 15-2. NONPROFIT OWNER/PURCHASER
- 15-3. NONPROFIT CONTROLLED FOR PROFIT ENTITY (OWNER OR PURCHAS…
- PART TWO: GENERAL CRITERIA FOR BOTH CAPITAL REPAIRS AND TRANSF…
- 15-4. APPLICABILITY
- 15-5. BASIC REQUIREMENTS
- Note: HUD lacks the authority to allow a project to reduce ren…
- 15-6. RENT INCREASES
- 15-7. UNASSISTED UNITS IN A HUD PROJECT
- 15-8. CAP ON MARKET RENTS
- 15-9. PROJECT CAPITAL NEEDS ASSESSMENT AND INCREASED DEPOSITS …
- Note: For a non-insured project with an old regulation/LMSA/PD…
- PART THREE: CAPITAL REPAIRS PROGRAM
- 15-11. GENERAL
- 15-12. ADDITIONAL ACCEPTABILITY REQUIREMENTS FOR THE OWNER
- 15-13. PROJECT ELIGIBILITY
- Part Four: Transfer Program
- 15-14. GENERAL
- 15-15. ADDITIONAL PURCHASER REQUIREMENTS
- 15-16. PROJECT ELIGIBILITY
- 15-17. TRANSFER OF PHYSICAL ASSETS (TPA) FOR A HUD INSURED TRA…
- Chapter Sixteen
- 16-1. BACKGROUND, APPLICABILITY AND OVERVIEW
- 16-2. OWNER OPTIONS
- 16-3. TIMELINESS
- Rent Comparability Study (RCS) . See Comparability Study.