If I am still in a 20 or 30 year contract (pre-MAHRA), how are my rents adjusted? What if the annual adjustment is not enough?

Haca Mis Contract Renewals

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If I am still in a 20 or 30 year contract (pre-MAHRA), how are my rents adjusted? What if the annual adjustment is not enough?

Category: Contract Renewals

Each HAP contract dictates the terms of the annual adjustments. Your options will be the Annual Adjustment Factor (AAF) or a Budget-Based adjustment. If the AAF is not enough (often it is only 1% or 2%), you have the option to request a Special adjustment. This adjustment covers increases in utilities, taxes and insurance. Guidance for requesting a Special adjustment is found in HUD Handbook 4350.1, Chapter 34, Section 3.

Please note that pre-MAHRA contracts are now eligible to request an early termination of their contract and renewal under MAHRA if the owner agrees to the following:

  • Renew the Section 8 contract for 20 years under Options One, Two, Three or Four and
  • A Preservation Agreement for a term equal to the length of term remaining on the original HAP contract
  • Sign the HUD-93184 “Rider to Original Section 8 Housing Assistance Payments Contract”