NAHMA HUD Update: HUD releases new Section 8 Renewal Policy guidebook

July 5, 2017

Below, please find information from HUD regarding the new Section 8 Renewal Policy guidebook. This guidance will apply to renewal and amend rent packages received by the Department (or post-marked) on or after July 28, 2017.


To view the guidebook online, please click here.

Dear Multifamily Partners:

HUD published the new Section 8 Renewal Policy Guide today, the document that controls the renewal of Section 8 housing assistance contracts as well as annual adjustments for those contracts.  Below are the most important changes; for a complete list of all revisions, please refer to the transmittal memo. 


The changes were placed on the Multifamily drafting table on December 21, 2016.  The comment period ended on January 23, 2017.  In addition to several minor internal procedural revisions, the changes of note include the following:


1.   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.)

2.   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)

3.   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)

4.   Clarify that nonprofits meeting one of the three discretionary criteria can participate in Option One B.  (See Note after Section 3-6. A.) 

5.   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)

6.  Clarify that for profit owners can renew under Option One or Option Two. (See Section 15-1.)

7.   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)

The publication can be found here and on the Multifamily homepage under “What’s New.”  Questions should be directed to Stan Houle.