Mod Rehab Apt - Looking to purchase but need answers

[Gordon Way]

Hey BP World-

I'm currently in negotiations on a 55 unit apt that is still on a renewable Moderate Rehabilitation Program contract. The current owner has renewed it annually and followed all the guidelines/red tape with the local PHA. However, when I reviewed the past several years' renewals they have had to use the current contract rate +OCAF (cost of living increase determined by HUD). Due to this, there is about a 15%+ variance from current rent to market rent (even market rent less utilities). I want to know, if I buy this building, is there a way to get them to re-baseline the rents to come into closer alignment with market? It's a low-income independent senior living apartment. I think there is a ton of opportunity here. I had heard that if you do significant updates/remodels that you can request a new baseline. . . but I can't find that in any HUD or local PHA documents. I would love to use BRRR on this and think it will be cash machine if I can get the rents up.

Let me know if you have any questions that I can answer to receive better advice. Thanks in advance BP!