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PHA- and HUD-Initiated Rent Reasonableness Determinations <br />HUD requires SAHA to make a determination of rent reasonableness (even if the owner has not <br />requested a change) if there is a 5 percent decrease in the Fair Market Rent that goes into effect <br />at least 60 days before the contract anniversary date. HUD also may direct SAHA to make a <br />determination at any other time. SAHA may decide that a new determination of rent <br />reasonableness is needed at any time. <br />In addition to the instances described above, SAHA will make a determination of rent <br />reasonableness at any time after the initial occupancy period if: (1) SAHA determines that the <br />initial rent reasonableness determination was in error or (2) SAHA determines that the <br />information provided by the owner about the unit or other units on the same premises was <br />incorrect. (3) Changes in the current rental market. <br />8-IILC. HOW COMPARABILITY IS ESTABLISHED <br />Factors to Consider <br />HUD requires PHAs to take into consideration the factors listed below when determining rent <br />comparability. SAHA may use these factors to make upward or downward adjustments to the <br />rents of comparison units when the units are not identical to the HCV-assisted unit. <br />• Location and age <br />• Unit size including the number of rooms and square footage of rooms <br />• The type of unit including construction type (e.g., single family, duplex, garden, low-rise, <br />high-rise) <br />• The quality of the units including the quality of the original construction, maintenance and <br />improvements made. <br />• Amenities, services, and utilities included in the rent <br />Units that Must Not be Used as Comparables <br />Comparable units must represent unrestricted market rents. Therefore, units that receive some <br />form of federal, state, or local assistance that imposes rent restrictions cannot be considered <br />comparable units. These include units assisted by HUD through any of the following programs: <br />Section 8 project-based assistance, Section 236 and Section 221(d)(3) Below Market Interest <br />Rate (BMIR) projects, HOME or Community Development Block Grant (CDBG) program- <br />assisted units in which the rents are subsidized; units subsidized through federal, state, or local <br />tax credits; units subsidized by the Department of Agriculture rural housing programs, and units <br />that are rent-controlled by local ordinance. <br />iii29iio Page 8-14 <br />