A Project Owner may request a waiver of the OCAF rent adjustment in extraordinary circumstances, with the Contract Administrator's consent for PBV

rad_pbv.rent_limit.ocaf_waiver_request · v1.0.0

Because the RAD Statute sets annual rent adjustments by an operating cost factor and HUD uses the published OCAF for that factor, HUD acknowledges the OCAF may not capture actual 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 who makes the request must submit documentation demonstrating that an alternative factor is needed to preserve the Covered Project, in the form the instructions published at hud.gov/rad require, to the Office of Recapitalization, which decides whether good cause exists and, if it grants the waiver, sets the alternative factor and the resulting rents. For a PBV conversion the Contract Administrator must consent to the request and that consent must be evidenced in the Project Owner's documentation.

Confidence

high

Effective from

2025-06-16

Last reviewed

2026-08-31