RAD PBV contract rents are adjusted only by OCAF, applied only to the portion of rent not attributable to debt service, and never fall below the initial rent

rad_pbv.rent_limit.ocaf_adjustment · v1.0.0

Contract rents at a RAD PBV Covered Project are adjusted only by HUD's Operating Cost Adjustment Factor at each anniversary of the HAP contract, subject to appropriations, and the factor is applied only to the portion of the rent not attributable to debt service. The ordinary PBV rent-determination machinery in section 8(o)(13)(I) of the Act and 24 CFR 983.301 and 983.302 does not apply to these adjustments. The rent to owner may at no time exceed the reasonable rent for comparable unassisted units as determined by the Contract Administrator under 24 CFR 983.303, and it may not be reduced below the initial rent to owner under the initial HAP contract except to correct a calculation error, where other housing assistance has been combined with the PBV assistance and 24 CFR 983.55 requires a reduction, or where responsibility for utilities has shifted between owner and tenant. Where the Covered Project is PHA-owned as defined at 24 CFR 983.3, the independent entity must determine the OCAF adjustment as well as reasonable rent and the HQS inspection.

Confidence

high

Effective from

2019-09-05

Last reviewed

2026-08-31