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. Administrative Plan 4/1/16 <br />. <br />Page 6-39 <br />6-III.C. APPLYING PAYMENT STANDARDS [24 CFR 982.505] <br />Overview <br />SAHA’s schedule of payment standards is used to calculate housing assistance payments for <br />HCV families. This section covers the application of SAHA’s payment standards. The <br />establishment and revision of SAHA’s payment standard schedule are covered in Chapter 16. <br />Payment standard is defined as “the maximum monthly assistance payment for a family assisted <br />in the voucher program (before deducting the total tenant payment by the family)” [24 CFR <br />982.4(b)]. <br />The payment standard for a family is the lower of (1) the payment standard for the family unit <br />size, which is defined as the appropriate number of bedrooms for the family under SAHA’s <br />subsidy standards [24 CFR 982.4(b)], or (2) the payment standard for the size of the dwelling <br />unit rented by the family. <br />If SAHA has established an exception payment standard for a designated part of an FMR area <br />and a family’s unit is located in the exception area, SAHA must use the appropriate payment <br />standard for the exception area. <br />SAHA is required to pay a monthly housing assistance payment (HAP) for a family that is the <br />lower of (1) the payment standard for the family minus the family’s TTP or (2) the gross rent for <br />the family’s unit minus the TTP. <br />If during the term of the HAP contract for a family’s unit, the owner lowers the rent, SAHA will <br />recalculate the HAP using the lower of the initial payment standard or the gross rent for the unit <br />[HCV GB, p. 7-8]. <br />Changes in Payment Standards <br />When SAHA revises its payment standards during the term of the HAP contract for a family’s <br />unit, it will apply the new payment standards in accordance with HUD regulations. <br />Decreases <br />If the amount on the payment standard schedule is decreased during the term of the HAP <br />contract, the lower payment standard generally will be used beginning at the effective date of the <br />family’s second regular reexamination following the effective date of the decrease in the <br />payment standard. SAHA will determine the payment standard for the family as follows: <br />Step 1: At the first regular reexamination following the decrease in the payment standard, SAHA <br />will determine the payment standard for the family using the lower of the payment standard for <br />the family unit size or the size of the dwelling unit rented by the family. <br />Step 2: SAHA will compare the payment standard from step 1 to the payment standard last used <br />to calculate the monthly housing assistance payment for the family. The payment standard used <br />by SAHA at the first regular reexamination following the decrease in the payment standard will <br />be the higher of these two payment standards. SAHA will advise the family that the application <br />of the lower payment standard will be deferred until the second regular reexamination following <br />the effective date of the decrease in the payment standard. <br />Step 3: At the second regular reexamination following the decrease in the payment standard, the <br />lower payment standard will be used to calculate the monthly housing assistance payment for the <br />3-167