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<br />in SAHA's jurisdiction. Information sources include newspapers, realtors, market <br />surveys, inquiries of owners and other available sources. The data will be <br />maintained by bedroom size and market areas. Market areas may be defined by <br />zip codes, census tract, neighborhood, and identifiable natural or man-made <br />boundaries. The data will be updated on an ongoing basis and rent information <br />that is more than 12 months old will be updated or eliminated from the database. <br /> <br /> <br /> <br />How Rents are Determined <br />SAHA Policy <br />The rent for a unit proposed for HCV assistance will be compared to the rent charged for <br />comparable units in the same market area. SAHA will develop a range of prices for <br />comparable units by bedroom size within defined market areas. Units proposed for HCV <br />assistance will be compared to the units within this rent range. Because units may be <br />similar, but not exactly like the unit proposed for HCV assistance, SAHA may make <br />adjustments to the range of prices to account for these differences. <br />Each of the factors listed above on the unit to be assisted will be compared, using a point <br />adjustment system, to those factors of comparable unassisted units in the database. The <br />average will be adjusted up or down based on the dollar value of all HUD required <br />comparable items in comparison with the total. <br />The adjustment must reflect the value of the difference not its construction costs (e.g., it <br />might cost $20,000 to put on a new roof, but the new roof might not make any difference <br />in what a tenant would be willing to pay because rents units are presumed to have <br />functioning roofs). <br />When a comparable project offers rent concessions (e.g., first month rent-free, or reduced <br />rent) reported monthly rents will be adjusted accordingly. For example, if a comparable <br />project reports rents of $500/month but new tenants receive the first month's rent free, the <br />actual rent for the unit would be calculated as follows: $500 x 11 months = 5500/12 <br />months = actual monthly rent of $488. <br /> <br />SAHA will notify the owner of the rent SAHA can approve based upon its analysis of <br />rents for comparable units. The owner may submit information about other comparable <br />units in the market area. SAHA will confirm the accuracy of the information provided <br />and consider this additional information when making rent determinations. The owner <br />must submit any additional information within 10 business <br /> <br /> <br /> <br /> <br /> <br /> <br />04/01/14 <br />Page 8-16 <br /> <br />