What is one of the conditions under which Multifamily properties may not increase their rents?

The rationale behind the idea that multifamily properties may not increase their rents when they are exempt from OCAF (Operating Cost Adjustment Factor) relates to the regulations governing rent increases in properties receiving certain forms of federal assistance. OCAF is a formula used to adjust rents for properties under HUD's regulatory oversight, primarily to account for inflation and changes in operating costs.

When a property is exempt from OCAF, it means that it does not have the automatic right to increase rents based on this adjustment mechanism. This exemption typically applies to properties that are not subject to certain funding requirements or are under specific types of contracts that do not permit such adjustments. Therefore, in these situations, landlords do not have the opportunity to increase rents purely based on the cost adjustments that would normally apply.

Understanding these exemptions is crucial for maintaining compliance with federal housing regulations and ensuring that rent pricing remains fair and in line with the governing rules for subsidies and tenant protections.