9-17. COMMUNICATING RESULTS OF HUD/CA REVIEWS

The HUD/CA must convey the results of the substantive review of the Owner’s RCS to the Owner within 30 calendar days after receiving a complete RCS package from the Owner.

• A. Approval. If the HUD/ CA substantive reviewer agrees with the RCS appraiser’s market rent conclusions, they must document that agreement on the reviewer’s certification (Appendix 9-5-5) and notify the HUD AE/CA that the market rents in the RCS are acceptable for use in further processing of the renewal.

• B. Questions and/or Clarifications. If aspects of the RCS are unclear or unsupported, the HUD/CA substantive reviewer must ask the RCS appraiser for additional information or explanation, if the Owner’s cover letter permits the HUD/CA reviewer to reach the RCS appraiser directly. If the issues have a minimal effect on valuation and the HUD/CA reviewer expects easy resolution, the substantive reviewer may call the RCS appraiser. If concerns are many, more significant, or complicated, the HUD/CA reviewer must send the RCS appraiser an email/fax/hard copy of a letter stating the concerns highlighted in the Reviewer’s Issues Memo (sample provided in Appendix 9-5-6) and give the RCS appraiser up to 10 calendar days to respond. (The HUD/CA reviewer must copy the

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Owner on any written correspondence.) The RCS appraiser must send the requested information to the HUD/CA reviewer and copy the Owner.

Within 10 calendar days after final information was due from the Owner or RCS appraiser, the HUD/CA reviewer must either: accept the study and proceed as described in Section 9-17.A, above; submit a request for additional information or clarification from the RCS appraiser, which will be evaluated pursuant to this paragraph; or draft a Decision Letter to the Owner.

C. Decision Letter. If the RCS appraiser’s response does not resolve the substantive reviewer’s concerns, the substantive reviewer will draft a Decision Letter challenging the RCS. If the substantive reviewer is a non-appraiser, an RCS review appraiser must also be engaged to review the subject’s RCS prior to issuance of such a letter. If the RCS review appraiser also concludes that the rejection is warranted, then the substantive reviewer may issue the Decision Letter that either tells the Owner the study must be redone and resubmitted or challenges the study’s rent conclusions and suggests an alternate rent. Any alternate rents must be developed by a RCS review appraiser and be consistent with this Chapter’s procedures and USPAP. The Decision Letter must tell the Owner how the RCS review appraiser arrived at the suggested market rent. The Decision Letter must also:

1. Be signed by the Regional Office Director or designee;

2. Clearly state the reasons the RCS is challenged or that alternate rents are offered;

3. List the Owner’s options; and

4. Provide a firm deadline for the Owner to respond.

• D. Owner’s Response. The Owner has 10 calendar days after the date of the Decision Letter to advise HUD in writing of their choice to accept HUD’s alternate rents, submit a new study, or appeal HUD’s decision.

If the Owner chooses to appeal or resubmit their RCS, HUD/CA may, upon the Owner’s request, prepare a short-term renewal at the then-current rents to allow time for processing the appeal. Any rent increases because of the appeal will be retroactive to the date of execution of the short-term renewal contract. Submission of a new study restarts the processing timeline. If the Owner chooses to appeal, the Owner may submit one revised version of the study with the materials supporting the appeal. Further revisions of the study will not be considered.