Notice of Operating Cost Adjustment Factors for Low-Income Housing Preservation and Resident Homeownership Projects Assisted with Section 8 Housing Assistance Payments

Resumen

The Low-Income Housing Preservation and Resident Homeownership Act of 1990 (``LIHPRHA'') requires that future rent adjustments for LIHPRHA projects be made by applying an annual factor to be determined by the Secretary to the portion of rent attributable to operating expenses for the project and, where the owner is a priority purchaser, to the portion of rent attributable to project oversight costs. This notice supersedes and corrects HUD's February 25, 1998 Federal Register notice announcing the Operating Cost Adjustment Factors (``OCAF(s)'') to be used for rent increases under LIHPRHA, which inadvertently set forth erroneous OCAFs. In those cases where the application of an erroneous OCAF resulted in the use of a budget-based rent adjustment, the budget-based calculation will remain in effect for the remainder of the annual period. If an owner accepted the erroneous OCAF published in the February 25, 1998 notice without taking the budget-based rent adjustment option, then, at such owner's request, the Department will retroactively apply the revised OCAFs contained in this notice to the appropriate gross rent potential. The corrected OCAFs set forth in this notice apply in all oth