The Low Income Housing Preservation and Resident Homeownership Act of 1990 (LIHPRHA) provided certain incentives to owners of affordable housing in exchange for a long term use agreement and plan of action. The Fixing America’s Surface Transportation Act of 2015 (FAST Act) revised LIHPRHA to allow certain projects subject to a LIHPRHA Use Agreement to seek a budget-based rent increase that includes new debt service. This draft notice provides guidelines for preparing, submitting, and reviewing a budget-based rent increase subject to the FAST Act amendments to LIHPRHA.

This proposed notice has completed HUD’s internal Departmental Clearance process. We are seeking feedback from stakeholders regarding the proposed process and guidelines for seeking a budget-based rent increase where new debt service is included in the budget.

Please document your feedback on this [worksheet]. Email completed feedback worksheets to S8RPG@hud.gov. HUD will consider feedback that is received as of January 11, 2024.

The draft notice can be viewed here: [Notice Draft]

Last updated: 12/1/2023