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<br /> <br />8-III.B. WHEN RENT REASONABLENESS DETERMINATIONS ARE REQUIRED <br />Owner-initiated Rent Determinations <br />The PHA must make a rent reasonableness determination at initial occupancy and whenever the <br />owner requests a rent adjustment. <br />The owner and the family first negotiate the rent for the unit. The PHA will assist the family <br />with the negotiations upon request. At initial occupancy the PHA must determine whether the <br />proposed rent is reasonable before a HAP Contract is signed. The owner must not change the <br />rent during the initial lease term. Subsequent requests for rent adjustments must be consistent <br />with the lease between the owner and the family. Rent increases will not be approved unless all <br />failed items identified by the most recent HQS inspection have been corrected. <br />SAHA Policy <br />After the initial occupancy period, the owner may request a rent adjustment in accordance <br />For rent increase requests after initial lease-up, SAHA may <br />request owners to provide information about the rents charged for other units on the <br />premises, if the premises include more than 4 units. In evaluating the proposed rents in <br />comparison to other units on the premises SAHA will consider unit size and length of <br />tenancy in the other units. <br />SAHA will determine whether the requested increase is reasonable within 14 days of <br />receiving the request from the owner. The owner will be notified of the determination in <br />writing. <br />All rents adjustments will be effective the first of the month following the 60 days notice <br />received by SAHA from the owner or on the date specified by the owner, whichever is <br />later. <br /> <br />PHA- and HUD-Initiated Rent Reasonableness Determinations <br />HUD requires the PHA to make a determination of rent reasonableness (even if the owner has <br />not requested a change) if there is a 5 percent decrease in the Fair Market Rent that goes into <br />effect at least 60 days before the contract anniversary date. HUD also may direct the PHA to <br />make a determination at any other time. The PHA may decide that a new determination of rent <br />reasonableness is needed at any time. <br />SAHA Policy <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 <br />that the initial rent reasonableness determination was in error or (2) SAHA determines <br />that the information provided by the owner about the unit or other units on the same <br />premises was incorrect. <br /> <br />04/01/14 <br />Page 8-14 <br /> <br />