Each year the majority of HAP Contracts must adjust their rents. The CMS Contracts Team understands the nuances of the various rent adjustment methods and they are willing to assist.
The HAP Contract or the property’s Use Agreement specifies the type of rent adjustment (OCAF, Budget-Based or AAF) the property will receive.
Tenant Paid Utility Allowances - the Owner must submit an Analysis and supporting documentation every three years (see Housing Notice H-2015-04). The allowances must be adjusted upwards or downwards as per the results of the analysis. When the analysis warrants a decrease in even one unit type’s allowance, the Owner must post to tenants in accordance with 24 CFR 245.405(a) and 245.410. The rent adjustment cannot be completed until the analysis and support are received and processed.