3 - PUBLIC HEARING ANNUAL ACTION PLAN

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Administrative Plan 4/1/16 Page 8-15 SAHA will determine whether the requested increase is reasonable within 14 days of receiving the request from the owner. The owner will be notified of the determination in writing. All rents adjustments will be effective the first of the month following the 60 days’ notice received by SAHA from the owner or on the date specified by the owner, whichever is later. SAHA- and HUD-Initiated Rent Reasonableness Determinations HUD requires SAHA to make a determination of rent reasonableness (even if the owner has not requested a change) if there is a 5 percent decrease in the Fair Market Rent that goes into effect at least 60 days before the contract anniversary date. HUD also may direct SAHA to make a determination at any other time. SAHA may decide that a new determination of rent reasonableness is needed at any time. SAHA Policy In addition to the instances described above, SAHA will make a determination of rent reasonableness at any time after the initial occupancy period if: (1) SAHA determines that the initial rent reasonableness determination was an error or (2) SAHA determines that the information provided by the owner about the unit or other units on the same premises was incorrect. LIHTC- and HOME-Assisted Units [24 CFR 982.507(c)] For units receiving low-income housing tax credits (LIHTCs) or units assisted under HUD’s HOME Investment Partnerships (HOME) Program, a rent comparison with unassisted units is not required if the voucher rent does not exceed the rent for other LIHTC- or HOME-assisted units in the project that are not occupied by families with tenant-based assistance. For LIHTCs, if the rent requested by the owner does exceed the LIHTC rents for non-voucher families, the PHA must perform a rent comparability study in accordance with program regulations. In such cases, the rent shall not exceed the lesser of: (1) the reasonable rent as determined from the rent comparability study; or (2) the payment standard established by the PHA for the unit size involved. 8-III.C. HOW COMPARABILITY IS ESTABLISHED Factors to Consider HUD requires PHAs to take into consideration the factors listed below when determining rent comparability. SAHA may use these factors to make upward or downward adjustments to the rents of comparison units when the units are not identical to the HCV-assisted unit. • Location and age • Unit size including the number of rooms and square footage of rooms • The type of unit including construction type (e.g., single family, duplex, garden, low-rise, high-rise) • The quality of the units including the quality of the original construction, maintenance and improvements made • Amenities, services, and utilities included in the rent 3-225