Option 3 is divided into Option 3-A (LITE): Renewal of the contract without restructuring, with rents marked down to market; and Option 3-B (FULL): A mortgage or rent restructuring and contract renewal with the rents marked down to market.
Eligibility Requirements:
- FHA-insured loan
- Current Rents are above market rents.
Submission Requirements
Option 3A
- Contract Renewal Request Form (HUD Form 9624)
- A Rent Comparability Study (RCS)
- A physical inspection report
- Copy of the most recent audited financial statements
Option 3B
Regardless of your option selection, SHCC will refer your contract to Recap for restructuring if the contract rents exceed comparable market rents and if the contract is eligible for referral.
HUD Guidance
Chapter Five of the Section 8 Renewal Policy has complete guidance regarding Option 3.