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PART III: CALCULATING FAMILY SHARE AND PHA SUBSIDY 6-III.A. OVERVIEW OF RENT AND SUBSIDY CALCULATIONS TTP Formula [24 CFR 5.628] HUD regulations specify the formula for calculating the total tenant payment (TTP) for an assisted family. TTP is the highest of the following amounts, rounded to the nearest dollar: • 30 percent of the family's monthly adjusted income (adjusted income is defined in Part II} • 10 percent of the family's monthly gross income (annual income, as defined in Part I, divided by i2) • A minimum rent of $50 that is established by SARA SARA has authority to suspend and exempt families from minimum rent when a financial hardship exists, as defined in section 6-III.B. The amount that a family pays for rent and utilities (the family share) will never be less than the family's TTP but maybe greater than the TTP depending on the rent charged for the unit the family selects. Minimum Rent f24 CFR 5.630] The minimum rent for this locality is $50. Family Share [24 CFR 982.305(a)(5)] If a family chooses a unit with a gross rent (rent to owner plus an allowance for tenant-paid utilities} that exceeds SAHA's applicable payment standard: (1) the family will pay more than the TTP, and (2) at initial occupancy SARA may not approve the tenancy if it would require the family share to exceed 40 percent of the family's monthly adjusted income. The income used for this determination must have been verified no earlier than 60 days before the family's voucher was issued. (For a discussion of the application of payment standards, see section 6-III.C.) HA Subsidy [24 CFR 982.505(b)] SARA will pay a monthly housing assistance payment (HAP) for a family that is equal to the lower of (1) the applicable payment standard for the family minus the family's TTP or (2) the gross rent for the family's unit minus the TTP. (For a discussion of the application of payment standards, see section 6-III.C.) Utility Reimbursement [24 CFR 982.514(b)] When SARA subsidy for a family exceeds the rent to owner, the family is due a utility reimbursement. HUD permits SARA to pay the reimbursement to the family or directly to the utility provider. SARA will make utility reimbursements to the family. 6-III.B. FINANCIAL HARDSHIPS AFFECTING MINIMUM RENT [24 CFR 5.630] The financial hardship rules described below do not apply in this jurisdiction because SARA has established a minimum rent of $50.00. 2/25/13 Page 6-30