Ocaf Worksheet Instructions (Page 3 of 4) in pdf

Ocaf Worksheet Instructions Page 3

Multiply the debt service (K) by the portion of the overall rent potential for the expiring Section 8

contract (J) in order to subtract the correct amount of debt service from the rent potential. (If

using the electronic spreadsheet, this calculation will be made automatically.)

Subtract the annual expiring Section 8 share of debt service (L) from the total annual rent

potential for the expiring Section 8 contract(s) (F) in order to calculate the annual expiring

Section 8 rent potential attributed to operations. The rent adjustment must be for the portion of

the rent that is attributable to operations, there should be no rent increase on the portion of the

rent that covers the debt service since this is a static figure. (If using the electronic spreadsheet,

this calculation will be made automatically.)

Enter the currently published OCAF for your area. If the OCAF is 2.3%, enter 1.023.

Multiply the annual expiring Section 8 rent potential attributable to operations (M) by the

currently published OCAF for the area (N). (If using the electronic spreadsheet, this calculation

will be made automatically.)

Add the expiring Section 8 portion of the debt service (L) to the adjusted rent attributable to

operations (O) to obtain the adjusted contract rent potential. (If using the electronic spreadsheet,

this calculation will be made automatically.)

If applicable, compare the adjusted contract rent potential with the Market Rent Potential (from

the RCS and reflected in the Renewal Request Forms). Enter the lesser of the adjusted contract

rent potential or the Market Rent Potential. NOTE: This step may not be applicable in all cases.

If no RCS was required, enter the adjusted contract rent potential.

Divide the adjusted contract rent potential (or market rent potential, if applicable)(Q) by the total

annual rent potential for the expiring Section 8 contract(s) (F) to adjust the adjusted OCAF. Due

to the fact that the OCAF was applied only to the portion of the expiring Section 8 rent potential

attributable to operations, the adjustment factor that will be applied to each of the rents will be

slightly less than the published OCAF. (If using the electronic spreadsheet, this calculation will

be made automatically.)

OCAF Worksheet Instructions

REV 4-6-09

Ocaf Worksheet Instructions Page 3