13-3. OWNER’S APPEAL OF HUD’S REFUSAL TO RENEW A SECTION 8 HAP CONTRACT

If HUD refuses to renew an owner’s Section 8 HAP contract, the following appeal process shall be followed. In the case of an appeal, it is important to take all steps necessary to protect the residents. This may include executing any short-term contract to complete the appeal process.

• A. The AE will:

  1. Provide a notice, in writing, to the owner notifying them of the reason(s) for refusal to renew the Section 8 HAP Contract.

  2. Provide a short-term renewal of the contract pending review of any appeal, if the contract is about to expire.

  3. Provide notice to tenants of the creation of a CDE Plan.

• B. The owner has 30 calendar days from receipt of this notice to provide written objections to the Satellite Office Director or to cure the problems identified. If the owner does not submit written objections or cure the problems identified during that period, the decision will become a final determination under Section 516(c) of MAHRA.

• C. If the owner submits written objections or asserts that the problems identified have been cured, the AE will consider the matter, review the owner’s action, if any, and send the owner a letter notifying it of the final decision to affirm, modify, or reverse the refusal to renew and setting forth the rationale for the final decision.

• D. Within 10 days of receiving the final decision, the owner may submit a written appeal to the AE contesting the decision and requesting a conference with the Regional Center that has jurisdiction over the project to discuss the issues.

• E. A representative of the Regional Center will meet with the owner at a mutually agreeable time, but no later than 10 calendar days after the owner requests the meeting.

• F. If the owner wants to provide additional information, a short but mutually agreeable deadline will be established for submission of the material.

• G. Within 20 days after the conference with the Regional Center, or 20 days after any agreed upon extension of time for submission of additional materials, the Regional Center will send the owner a letter advising it of the decision to reverse, modify or affirm the original decision.

• H. The Regional Center Director or his/her designee will review any appeal, conduct the conference, and issue the written decision. The official designated will be one who was not directly involved in making the decision being appealed. The reviewing official’s decision is a final determination.

• I. Based on the outcome of the appeal, the AE will:

  1. Renew the contract if the owner subsequently becomes compliant or prevails with the appeal and the Regional Center or Satellite Office changes its decision to terminate the contract.

Chapter Thirteen – Published March 2023

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2. Begin the process for obtaining regular Housing Choice Vouchers (HCVs) if the owner does not prevail in their appeal and the Regional Center or Satellite Office upholds its decision to terminate the contract. The instructions in Notice PIH 2001-41 (HA), Section 8 Tenant-Based Assistance (Enhanced and Regular Housing Choice vouchers) for Housing conversion actions – Policy and Guidance, or any successor notice, must be followed. Notice PIH 2001-41 (HA) can be found at:

http://www.hud.gov/offices/adm/hudclips/notices/pih/01pihnotices.cfm.

3. Monitor the processing of the vouchers with the assigned AE/CA, PIH and the owner, until the vouchers have been issued.

4. Terminate the contract after vouchers have been issued to the eligible residents.