2-16. INCREASES IN DEPOSITS TO THE RESERVE FOR REPLACEMENT

The owner or lender may request increases in the monthly deposit to the RFR account.

Either the owner or Lender will be required to submit a Project Capital Needs Assessment (PCNA) or its equivalent.

Note: A project that is partially-assisted with a new regulation Section 8 contract under 24 CFR Parts 880 or §881 is exempt from the requirement to establish and maintain a RFR account. (See 24 CFR Part 880.602(a)(1)(v).) A project that is partially-assisted with a new regulation Section 8 contract under 24 CFR Part 883 may be exempt from the requirement to establish and maintain a RFR account. (See 24 CFR Part 880.602(a)(2)(v).) The term “partially-assisted” has the meaning set forth in 24 CFR Part 880.201, 881.201, and 883.302.

Note: The deposits to the reserve for replacement account must be increased by the most recent published “Regional AAF with Highest Utility Excluded,”, Table 2 for the region in which the project is located. Example: The current annual deposits are $2,400 and the most recently published AAF is 1.02, then the RFR deposits would increase by $48 or $2,400 x 1.02 percent.