3 - PUBLIC HEARING ANNUAL ACTION PLAN

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Administrative Plan 4/1/16 Page 8-16 Units that Must Not Be Used as Comparables Comparable units must represent unrestricted market rents. Therefore, units that receive some form of federal, state, or local assistance that imposes rent restrictions cannot be considered comparable units. These include units assisted by HUD through any of the following programs: Section 8 project-based assistance, Section 236 and Section 221(d)(3) Below Market Interest Rate (BMIR) projects, HOME or Community Development Block Grant (CDBG) program- assisted units in which the rents are subsidized; units subsidized through federal, state, or local tax credits; units subsidized by the Department of Agriculture rural housing programs, and units that are rent-controlled by local ordinance. Note: Notice PIH 2011-46, issued August 17, 2011, provides further guidance on the issue of what constitutes an assisted unit. Rents Charged for Other Units on the Premises The Request for Tenancy Approval (HUD-52517) requires owners to provide information, on the form itself, about the rent charged for other unassisted comparable units on the premises if the premises include more than 4 units. By accepting SAHA payment each month the owner certifies that the rent is not more than the rent charged for comparable unassisted units on the premises. If asked to do so, the owner must give SAHA information regarding rents charged for other units on the premises. 8-III.D . SAHA RENT REASONABLENESS METHODOLOGY How Market Data Is Collected SAHA Policy SAHA will use GoSection8.com as an outside vendor who specializes in rent reasonable data collection. At any time SAHA may also collect and maintain data on market rents in SAHA's jurisdiction. Information sources include newspapers, realtors, market surveys, inquiries of owners and other available sources. The data will be maintained by bedroom size and market areas. Market areas may be defined by zip codes, census tract, neighborhood, and identifiable natural or man-made boundaries. The data will be updated on an ongoing basis and rent information that is more than 12 months old will be updated or eliminated from the database. How Rents Are Determined SAHA Policy SAHA will use GoSection8.com as an outside vendor who specializes in rent reasonable data collection. SAHA will notify the owner of the rent SAHA can approve based upon its analysis of rents for comparable units. The owner may submit information about other comparable units in the market area. SAHA will confirm the accuracy of the information provided and consider this additional information when making rent determinations. The owner must submit any additional information within 10 business days of SAHA’s request for information or the owner’s request to submit information. 3-226