16-2. OWNER OPTIONS

In cases where the financing has been prepaid or will be prepaid, owners may select from the following options:

• A. Amend the Section 8 HAP contract. Amend the Section 8 HAP contract by extending the term to the originally scheduled maturity date of the Financing using Form HUD 9647, Extension Amendment to Old Regulation State Agency Housing Assistance Payments Contract” (“Extension Amendment”) verbatim . No variations in the contract

Chapter Sixteen – Published March 2023

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language are permitted without the prior written approval of the HUD Multifamily Regional Center Director with jurisdiction. Execution of the Extension Amendment by both owner and HFA will (1) be deemed to reinstate the 1975 HAP Form of contract, and (2) amend the HAP contract by extending the term through the originally scheduled maturity date of the Financing that was formerly prepaid.

• B. Renew the HAP contract under MAHRA. Regardless of when the financing was prepaid, the owner may renew the Section 8 HAP contract under MAHRA pursuant to any renewal option for which the project is eligible. For these renewals, the Preservation Exhibit and the HUD-93184 are not required. Owners are to complete Form HUD-9624, Contract Renewal Request Form indicating the renewal option of their choice, and the corresponding Renewal Worksheet for the selected option. Should the owner choose a renewal option that requires submission of a Rent Comparability Study (“RCS”), i.e. , Option One, Option Two, or Option Three, the RCS must be dated no more than 90 days before the owner submits Form HUD-9624. Project eligibility will be determined as of the “Date of Submission” on page 1 the Contract Renewal Request Form. The term of the MAHRA renewal contract is to begin on the first day of the month following the month in which the parties execute the renewal contract. Should the owner and HFA execute the contract during different months, the renewal term is to begin on the first day of the month following the month in which the last party to execute the contract does so. For prospective prepayments, the term of the contract must begin on the prepayment date.

• C. Opt out of the Section 8 program. Owners choosing to opt out of the Section 8 program may do so by selecting Option Six on the Contract Renewal Request Form. If additional time is needed to satisfy the one-year notification requirement, the HFA and the owner may enter into a short-term contract, not to exceed a term of one year, at current contract rents using the Basic Renewal Contract (HUD-9636).