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5-3. ENTRY INTO RECAP

HUD Section 8 Renewal Policy Guidebook · 2026 edition · updated 2026-09-23 · United States

  • A. Above-Market Projects: Prior to Sunset, an owner of an eligible project may request:

    1. Option 3A (Lite): A renewal of the contract without debt restructuring, with the rents reduced to comparable market rents. Use the Interim (Lite) Mark-to-Market Renewal Contract (HUD-9641), for entry into Recap as a Lite. An Interim (Lite) Mark-to-Market Renewal Contract has a term determined by Recap, not to exceed

Chapter Five – Published March 2023

2

12 months. Rent adjustments are prohibited during the term of the Interim (Lite) Mark-to-Market Renewal Contract.

  1. Option 3B (Full): A debt restructuring and contract renewal (with a term of up to 20 years), with the rents reduced to comparable market rents. Use the Interim (Full) Mark-to-Market Renewal Contract, for entry into Recap as a Full. Rent adjustments are prohibited during the term of the Interim (Full) Mark-to-Market Renewal Contract.

Note: If HUD determines that contract rents exceed comparable market rents and the project is otherwise eligible for referral to Recap for debt restructuring and/or rent reduction, the AE must forward the project to Recap for processing.

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▸Contents — HUD Section 8 Renewal Policy Guidebook
HUD Section 8 Renewal Policy Guidebook

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