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. Administrative Plan 4/1/16 <br />. <br />Page 6-35 <br />PART III: CALCULATING FAMILY SHARE AND SAHA SUBSIDY <br />6-III.A. OVERVIEW OF RENT AND SUBSIDY CALCULATIONS <br />TTP Formula [24 CFR 5.628] <br />HUD regulations specify the formula for calculating the total tenant payment (TTP) for an <br />assisted family. TTP is the highest of the following amounts, rounded to the nearest dollar: <br />• 30 percent of the family’s monthly adjusted income (adjusted income is defined in Part II) <br />• 10 percent of the family’s monthly gross income (annual income, as defined in Part I, divided <br />by 12) <br />• The welfare rent (in as-paid states only) <br />• A minimum rent between $0 and $50 that is established by SAHA <br />SAHA has authority to suspend and exempt families from minimum rent when a financial <br />hardship exists, as defined in section 6-III.B. <br />The amount that a family pays for rent and utilities (the family share) will never be less than the <br />family’s TTP but may be greater than the TTP depending on the rent charged for the unit the <br />family selects. <br />Welfare Rent [24 CFR 5.628] <br />SAHA Policy <br />Welfare rent does not apply in this locality. <br />Minimum Rent [24 CFR 5.630] <br />SAHA Policy <br />The minimum rent established by SAHA is $50. <br />Family Share [24 CFR 982.305(a)(5)] <br />If a family chooses a unit with a gross rent (rent to owner plus an allowance for tenant-paid <br />utilities) that exceeds SAHA’s applicable payment standard: (1) the family will pay more than <br />the TTP, and (2) at initial occupancy SAHA may not approve the tenancy if it would require the <br />family share to exceed 40 percent of the family’s monthly adjusted income. The income used for <br />this determination must have been verified no earlier than 60 days before the family’s voucher <br />was issued. (For a discussion of the application of payment standards, see section 6-III.C.) <br />SAHA Subsidy [24 CFR 982.505(b)] <br />SAHA will pay a monthly housing assistance payment (HAP) for a family that is equal to the <br />lower of (1) the applicable payment standard for the family minus the family’s TTP or (2) the <br />gross rent for the family’s unit minus the TTP. (For a discussion of the application of payment <br />standards, see section 6-III.C.) <br />Utility Reimbursement [24 CFR 982.514(b)] <br />When SAHA subsidy for a family exceeds the rent to owner, the family is due a utility <br />reimbursement. HUD permits SAHA to pay the reimbursement to the family or directly to the <br />utility provider. <br />3-163