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Definitions A qualified census tract is any census tract (or equivalent geographic area defined by the Bureau of the Census) in which at least 50 percent of households have an income of less than 60 percent of Area Median Gross Income (AMGI), or where the poverty rate is at least 25 percent and where the census tract is designated as a qualified census tract by HUD. Tax credit rent is the rent charged for comparable units of the same bedroom size in the building that also receive the low-income housing tax credit but do not have any additional rental assistance (e.g., tenant-based voucher assistance). Use of FMRs, Exception Payment Standards, and Utility Allowances [24 CFR 983.301(f)] When determining the initial rent to owner, SAHA must use the most recently published FMR in effect and the utility allowance schedule in effect at execution of the HAP contract. When redetermining the rent to owner, SAHA must use the most recently published FMR and the utility allowance schedule in effect at the time of redetermination. At its discretion, SAHA may for initial rent, use the amounts in effect at any time during the 30-day period immediately before the beginning date of the HAP contract, or for redeterminations of rent, the 30-day period immediately before the redetermination date. Any HUD-approved exception payment standard amount under the tenant-based voucher program also applies to the project-based voucher program. HUD will not approve a different exception payment standard amount for use in the PBV program. Likewise, SAHA may not establish or apply different utility allowance amounts for the PBV program. The same utility allowance schedule applies to both the tenant-based and project-based voucher programs. Redetermination of Rent [24 CFR 983.302, FR Notice 11/24/08] SAHA must redetermine the rent to owner upon the owner's request or when there is a five percent or greater decrease in the published FMR. Rent Increase If an owner wishes to request an increase in the rent to owner from SAHA, it must be requested 60 days prior to the annual anniversary of the HAP contract (see Section 17-V.D.). The request must be in writing and include the new rent amount the owner is proposing. SAHA may only make rent increases in accordance with the rent limits described previously. There are no provisions in the PBV program for special adjustments (e.g., adjustments that reflect increases in the actual and necessary expenses of owning and maintaining the units which have resulted from substantial general increases in real property taxes, utility rates, or similar costs). SAHA may not approve and the owner may not receive any increase of rent to owner until and unless the owner has complied with requirements of the HAP contract, including compliance with HQS. The owner may not receive any retroactive increase of rent for any period of noncompliance. If the request for increase in the rent is not received 60 days prior, the effective date will be moved accordingly. iii29iio Page 17-26