On March 27, HUD’s Office of Multifamily Housing Programs announced newly updated guidance for project-based rental assistance properties renewing their Section 8 contracts.
The changes to Chapter Nine of HUD’s Section 8 Renewal Policy Guidebook update the process for submitting and conducting Rent Comparability Studies (RCS), which are used to establish contract rents. The changes also adjust the valuation of providing supportive services to residents, and how those valuations can be reflected in HUD-supported rents; LeadingAge had pushed back strongly to a devaluation of non-shelter services originally announced by HUD in November of 2021.
In response to the pushback, HUD withdrew the 2021 policy. The updated Handbook chapter was developed by HUD following feedback received from LeadingAge and other stakeholders on its draft published in April 2022.
According to HUD’s press release, Chapter Nine of the Guidebook now includes the following key updates:
- Revises options available for owners seeking to renew their contracts without a rent comparability study, when eligible, to reduce administrative and processing costs and time for owners.
- Enhances consistency in valuing non-shelter services to better support properties with services to residents, such as on-site health screening.
- Allows internet and broadband services to be considered an eligible non-shelter service for valuation purposes.
The updates contained in Chapter Nine of the Section 8 Renewal Guidebook become effective for owners beginning May 1, 2023.
LeadingAge is developing an in-depth analysis for members. Reach out to jbilowich@leadingag.org with questions.
