HUD Handbook 4350.3 § 7-18

A.       Owners must submit requests for rent increases to HUD or the Contract
                  Administrator following the submission requirements described in the following:

                  1.       HUD Handbook 4350.1, Multifamily Asset Management and Project
                           Servicing, for budget-based rent increases, annual adjustment factor
                           increases, and utility allowance changes; or

                  2.       The Section 8 Contract Renewal Policy Guide for rent adjustments, if the
                           Section 8 contract has been renewed pursuant to Multifamily Assisted
                           Housing Reform and Affordability Act (MAHRA).

         B.       Owners must implement approved rent changes on the effective date approved
                  by HUD or the Contract Administrator. In some cases, this date may reflect a
                  retroactive approval, and the owner must change the tenant certification and
                  adjust the monthly subsidy voucher. Revised data must be transmitted to the
                  Contract Administrator or to TRACS to reflect the retroactive changes.

         C.       Owners must make changes to the Utility Allowances effective the same date as
                  the rent effective date for the annual analysis submitted at the time of the rent
                  adjustment. In cases where the Utility Analysis is completed mid-year due to a
                  10% or greater rate increase, the effective date of the Utility Allowance must be
                  the first day of the first month following approval by HUD or the Contract
                  Administrator.

         D.       Owners must prepare tenant certifications reflecting gross rent changes using the
                  on-site software and submit the changes to their Contract Administrator or
                  TRACS for each tenant in the project/contract.

HUD Multifamily Occupancy Handbook               7-31                                             8/13
Chapter 7: Recertification, Unit Transfers,
and Gross Rent Changes