04 040113 HA ADMINPLAN EX 2 - Laserfiche WebLink

Home Browse Search

Redetermination of Rent [24 CFR 983.302, FR Notice 11/24/08] SARA must re-determine 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 SARA, 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. SARA 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). SARA 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 noncomp lance. If the request for increase in the rent is not received 60 days prior, the effective date will be moved accordingly. Rent Decrease If there is a decrease in the rent to owner, as established in accordance with program requirements such as a change in the FMR or exception payment standard, or reasonable rent amount, the rent to owner must be decreased regardless of whether the owner requested a rent adjustment. However, SARA may stipulate in the HAP contract that the maximum rent on a unit will not be less than the initial rent. Notice of Rent Change The rent to owner is redetermined by written notice by SARA to the owner specifying the amount of the redetermined rent. SARA notice of rent adjustment constitutes an amendment of the rent to owner specified in the HAP contract. The adjusted amount of rent to owner applies for the period of 12 calendar months from the annual anniversary of the HAP contract. SARA will provide the owner with at least 30 days written notice of any change in the amount of rent to owner. 17-VIILC. REASONABLE RENT [24 CFR 983.303] At the time the initial rent is established and all times during the term of the HAP contract, the rent to owner for a contract unit may not exceed the reasonable rent for the unit as determined by SARA. When Rent Reasonable Determinations are Required SARA must re-determine the reasonable rent for a unit receiving PBV assistance whenever any of the following occur: o~ro2~i2 Page 17-27