A PBRA Project Owner may request a waiver of the OCAF rent adjustment in extraordinary circumstances

rad_pbra.rent_limit.ocaf_waiver_request · v1.0.0

HUD sets the RAD annual rent adjustment by the published Operating Cost Adjustment Factor and acknowledges that this may not fully capture operating cost increases at every Covered Project. In extraordinary circumstances a Project Owner may request a waiver of the OCAF adjustment and receive an adjustment by an alternative operating cost factor instead. An owner making the request must submit documentation demonstrating the need for an alternative factor in order to preserve the Covered Project, consistently with the instructions published at hud.gov/rad, to the Office of Recapitalization. That office determines whether good cause exists and, if the waiver is granted, sets the alternative operating cost factor and the resulting rents.

Confidence

high

Effective from

2025-06-16

Last reviewed

2026-08-31