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Administrative Plan 5/1/21 <br /> Page TSP-26 <br />TPS-V.F. PAYMENT STANDARDS <br />Payment Standard Schedule <br />For the EHV program, HUD has waived the regulation requiring a single payment standard for <br />each unit size. Instead, the PHA may, but is not required to, establish separate higher payment <br />standards for EHVs. Lower EHV payment standards are not permitted. If the PHA is increasing <br />the regular HCV payment standard, the PHA must also increase the EHV payment standard if it <br />would be otherwise lower than the new regular HCV payment standard. The separate EHV <br />payment standard must comply with all other HCV requirements with the exception of the <br />alternative requirements discussed below. <br />Further, if the PHA chooses to establish higher payments standards for EHVs, HUD has <br />provided other regulatory waivers: <br /> Defining the “basic range” for payment standards as between 90 and 120 percent of the <br />published Fair Market Rent (FMR) for the unit size (rather than 90 to 110 percent). <br /> Allowing a PHA that is not in a designated Small Area FMR (SAFMR) area or has not opted <br />to voluntarily implement SAFMRs to establish exception payment standards for a ZIP code <br />area above the basic range for the metropolitan FMR based on the HUD published SAFMRs. <br />The PHA may establish an exception payment standard up to 120 percent (as opposed to 110 <br />percent) of the HUD published Small Area FMR for that ZIP code area. The exception <br />payment standard must apply to the entire ZIP code area. <br />- The PHA must notify HUD if it establishes an EHV exception payment standard based <br />on the SAFMR. <br />PHA Policy <br />The PHA will not establish a higher payment standard amount for EHVs. The PHA will <br />use the same payment standards for HCV and EHV. <br />Rent Reasonableness <br />All rent reasonableness requirements apply to EHV units, regardless of whether the PHA has <br />established an alternative or exception EHV payment standard. <br />Increases in Payment Standards <br />The requirement that the PHA apply increased payment standards at the family’s first regular <br />recertification on or after the effective date of the increase does not apply to EHV. The PHA <br />may, but is not required to, establish an alternative policy on when to apply the increased <br />payment standard, provided the increased payment standard is used to calculate the HAP no later <br />than the effective date of the family’s first regular reexamination following the change. <br />PHA Policy <br />The PHA will not establish an alternative policy for increases in the payment standard. <br />PHA policy in Section 11-III.B. governing increases in payment standards will apply to <br />EHV. <br />EXHIBIT 3