Note: If proper notification was not provided, the owner must provide acceptable…

During this one-year period:

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     - 1) The families’ contribution to the rent can only be increased during the period of time necessary to fulfill the full notification time frame for reasons of increases in household income and/or changes resulting from an annual income recertification. 

     - 2) The AE/CA will offer the owner a short-term contract. See Section 2-8 for information on rent setting for the short-term renewal. 

        - a) If the owner renews the contract when it ends in the middle of the month, and the owner has submitted a voucher for the full month, nothing further is needed. 

        - b) If the owner does not renew the contract when it ends in the middle of the month, and the owner has submitted a voucher for the full month, the owner is required to pay back the funds for the period not covered by the contract. The CA will determine the amount to be repaid and HUD will process any recovery action. 

  - c. Does the owner certify that it will honor the tenant’s right to remain at the project as long as the project continues to be offered for rental housing (if the PHA approves a rent equal to the new rent charged for the unit), unless the owner has grounds for eviction under State or local law? 

4. Log the owner’s request as indicated on the Contract Renewal Request Form (Form HUD-9624) and any other relevant information in iREMS.

• B. Four months (120 days) prior to the contract expiration date, and upon receipt of the written notice provided by the owner, the AE should again contact the owner to explore alternatives to opting out.

• C. It is imperative that the AE coordinate this effort with Public and Indian Housing (PIH) staff in the Regional Center/Satellite Office with jurisdiction. If there is a delay in the provision of tenant-based assistance, the CA 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). Refer to PIH Notice 2001-41(HA) for detailed guidance on the conversion process.

• D. Recap Projects. If an owner has decided to opt-out while the project is assigned to Recap for a rent reduction or debt restructuring, see Section 5-4. D. of this Guide for detailed processing instructions.

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