Ocaf Worksheet Instructions printable pdf download

Ocaf Worksheet Instructions

OCAF Worksheet Instructions

These instructions are for use by Owners of projects that require an Operating Cost Adjustment Factor

(OCAF) calculation (rent adjustments, “lesser of” test, etc.). Each entry of the OCAF Worksheet is

explained below.

NOTE:

All calculations should be taken out to the second decimal point (1.02) except for row R,

“Increase Factor” which should be taken out to the third decimal point (1.023).

Rounding to the nearest dollar figure can take place in Step Three when the new rents are

calculated with the Increase Factor.

If using the electronic spreadsheet, there are three worksheets, each with a separate tab at the

bottom of the page.

Step One

Calculate the current Section 8 rent potential for expiring contracts. Enter information only for the

Section 8 units in the project that are expiring.

Enter the unit type (1-BR, 2-BR, etc.) with the contract/stage number. When entering

information please distinguish between similar units with different rents. For example, if there is

an expiring contract with one bedroom apartments that have different rents enter 1BR-a, 1BR-b,

etc. If an Owner elects to combine the contracts into a single contract and there are units of the

same bedroom type in the combined contracts, they should be combined into one rent level that

will set the rent at an average that yields the same adjusted rent potential. For example: total rent

for combined contracts

total # units = Average (# of units X rent = total rents)

Enter the number of units that correspond to the unit type and contract/stage number.

Enter the current monthly Section 8 contract rent for the corresponding unit type.

Multiply the current Section 8 contract rent (C) by the number of units (B) to get the monthly

current Section 8 rent potential for the unit type. (If using the electronic spreadsheet, these

calculations will be made automatically.)

OCAF Worksheet Instructions

REV 4-6-09

Ocaf Worksheet Instructions