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Some contract renewal options will require owners to submit a Rent Comparability Study (RCS). The purpose of the RCS is for a licensed appraiser, using his/her professional expertise, to estimate rents that a reasonable tenant, not receiving assistance, might pay in the subject property's market area. The RCS rents are a threshold for adjusting PBCA property rents during the contract renewal/rent adjustment process.
Beginning with the date that the RCS was initially used for a contract renewal/rent adjustment, the RCS has a maximum five-year “life cycle." HUD requires owners to obtain a new RCS every five years. PBCA property owners must contract with a state-certified licensed general appraiser for preparation of an RCS.
Because the owner must submit the contract renewal/rent adjustment request to OHFA at least 120 days before the contract anniversary date, we recommend that owners begin searching for an appraiser six months prior to their contract anniversary date.
Please be aware that OHFA cannot complete the processing of your contract renewal/rent adjustment request until all the requirements of the RCS are met.
NOTE: On May 18, 2012, HUD published changes to the Section 8 Renewal Policy. A RCS is now required for an Option 4 budget-based rent adjustment requests during the term of the contract.
This brings the RCS requirement to a group of properties that have never needed a RCS, including most 202s and 515s. To help you with this new requirement, please refer to the HUD Section 8 Renewal Policy Guidebook, Chapter 6, Section 6-3 and Chapter 9.
For detailed guidance and submission requirements, please refer to the HUD Section 8 Renewal Policy Guidebook, Chapter 9.
TIP: Included in Chapter 9 are two alternatives to the RCS (Section 9-5 & 9-6). Reviewing them may save you the cost of an RCS.