3-8. PROCESSING INSTRUCTIONS

See Section 2-17 as modified below.

• A. Initially Eligible. The AE/CA must use the owner’s RCS to determine if the project is eligible for renewal under either Option One-A or One-B. The AE/CA, along with a

Chapter Three – Published March 2023

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qualified appraiser, will also review the RCS based on the instructions found in Sections 9-17 through 9-20 of this Guide and determine whether the comparable market rent conclusions are reasonable. For transactions that include a RCS that has “as is” and “after rehab” market rent determinations as part of a Chapter 15 transaction, the AE/CA must use the “as is” market rents to determine initial eligibility.

• B. Not Eligible.

  1. If the project is not eligible for Option One-A, but meets the eligibility criteria for Option One-B, the AE/CA will notify the owner and request the owner to modify its renewal request.

  2. If a project is not eligible for Option One-A or One-B,

     • a. In the case of a request for the early termination of an existing contract, the owner may be permitted to withdraw its renewal request entirely, in which case the existing contract would remain in place.

     • b. In all other cases the owner must switch to any other renewal option the project is eligible for including Option Six, Opt-Out. If an owner selects an option, other than Option One, then the owner’s RCS, subject to review described in Chapter 9 of this Guide, shall be used to determine the market rents for the project.

  3. In the case where an existing contract has expired, the AE/CA may provide shortterm Renewal Contract at current rents to the owner while the owner determines the other renewal options for which the project may be eligible.

• C. Comparability Studies. Along with a request to Mark-Up-To-Market, the owner must submit a RCS prepared following the guidelines detailed in Chapter Nine of this Guide.