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HUD Restarts Approval of Section 202 PRAC Rent Adjustments for Replacement Deposit Reserves

Wednesday, March 18, 2020 - 4:30PM

The U.S. Department of Housing and Urban Development (HUD) today restarted routine processing and approval of Section 202 Project Rental Assistance Contract (PRAC) rent adjustments to increase reserve for replacement deposits, after issuing a memorandum from the Office of Multifamily Housing Programs. HUD temporarily suspended budget-based rent increase requests in July 2019 due to escalating subsidy requirements. Since then, HUD approved PRAC rent increase requests for core operating cost needs only. The memo includes updated processing and approval of budget-based rent adjustments, including establishing a protocol for when a property is planning to convert under HUD’s Rental Assistance Demonstration program.

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