New Section 8 Renewal Policy Guide Posted

Regulation | August 09, 2017 | by Colleen Bloom

HUD has published a new Section 8 Renewal Policy Guidebook that applies to all renewal and amend rent submissions post-marked on or after July 28, 2017

The latest version of the Section 8 Renewal Policy Guidebook, issued by HUD on June 30, 2017, controls the renewal of Section 8 housing assistance contracts as well as annual adjustments for those contracts. All submissions post-marked on or after July 28, 2017 must follow these rules. 

The new Guide incorporates comments from earlier versions posted last December and can be found on the updated Section 8 Renewal Policy Guide webpage. Changes to the text of the Guide are in italics, except for Chapter 9 that was completely reorganized and updated.* 

While the transmittal cover sheet provides a summary of the changes with links to 27 particular changes in the document, the most notable changes:  

  • Clarify that an owner who wishes to renew under Option Three can renew for the lesser of 20 years or the remaining term of the use agreement. (See Section 2-4. B.3.e.)
  • Clarify that an owner who wishes to terminate an existing Option Four contract and renew the contract under Option Four, can do so.  (See Section 2-4. B.4)
  • Clarify that if an owner of a project with an existing Preservation Exhibit wishes to terminate the contract and renew early, the new Preservation Exhibit will replace the existing one and include only the number of years remaining on the contract being terminated. (See Section 2-4. D)
  • Clarify that nonprofits meeting one of the three discretionary criteria can participate in Option One B.  (See Note after Section 3-6. A.)  
  • Clarify that projects currently renewed under Option Four in addition to those currently renewed under Option Two can reduce rents to market to qualify for renewal under Option Two. (See Note after Section 4-1)
  • Clarify that for profit owners can renew under Option One or Option Two. (See Section 15-1.)
  • Direct users to Handbook 4350.1 for instructions on combining contracts but clarify that account executives can only combine contracts that are in the same FMR area. (See Section 2-10)


* A 3-part series of videos is now available on YouTube explaining the requirements under the newly revised Chapter 9 on rent comparability studies. 

Questions going forward should be directed to Carissa Janis at HUD (with a cc: to us here at LeadingAge).