75-057 - Laserfiche WebLink

Home Browse Search

At least 30 percent of the families assisted with annual allocations of contract authority, on a national basis, at the time of initial rent- ing, shall be "very-low income families" - families whose incomes do not exceed 50 percent of the median income for the area, with adjustments for larger or smaller families. Assistance under the new program may also bc combined with assistance under the Sec- tion 202 direct loan program for the elederly0 in order to reach lower-income families. RENTA,L,. REQUIRE MEN TS Family rental payments shall be no less than 15 percent or more than 25 percent of the family's income, taking into consideration the number of minor children in the household and the extent of medical and unusual expenses. The 15 percent applies to large families and those with exceptional expenses. The housing assistance contract with the owner shall establish the "maximum monthly rent" (including utilities and all maintenance and management charges) that the owner is entitled to receive. This maximum monthly rent shall not exceed by more than 10 per- cent the "fair market rent" established by the Secretary for the local market area, except that it may exceed this fair market rent by up to 20 percent where the Secretary determines special circumstances warrant it, or that such higher rent is necessary to implement the "local housing assistance plan" required under the Housh~g ~::d Community Development Act of 1974. "Fair market rents" are established at least annually for existing or newly- constructed rental dwellings of various sizes and types in the market area suitable for occupancy by persons assisted; these rentals shall be published in the Federal Register with a reasonable time for public comment and shall become effective on publication in the Register in final form. In establishing fair market rents the HUD Secretary is expected to take into accouot factual data and analysis and recommendations from community sources familiar with prevailing rents and costs in various market areas; and the need to provide housing with suitable amenities and sound architectural design, Maximum monthly rents to be charged by the owner may be adjusted annually or more frequently to reflect changes in fair market rents or on the basis of a reasonable formula, set by the Secretary. Additional adjustments shall be made by the Secretary to the extent he determines increases 000107