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Administrative Plan 4/1/2016 Page 17-34 <br />PART VIII: DETERMINING RENT TO OWNER <br />17-VIII.A. OVERVIEW <br />The amount of the initial rent to an owner of units receiving PBV assistance is established at the <br />beginning of the HAP contract term. Although for rehabilitated or newly constructed housing, <br />the agreement to enter into HAP Contract (Agreement) states the estimated amount of the initial <br />rent to owner, the actual amount of the initial rent to owner is established at the beginning of the <br />HAP contract term. <br />During the tem of the HAP contract, the rent to owner is redetermined at the owner’s request in <br />accordance with program requirements, and at such time that there is a five percent or greater <br />decrease in the published FMR. <br /> <br />17-VIII.B. RENT LIMITS [24 CFR 983.301] <br />Except for certain tax credit units (discussed below), the rent to owner must not exceed the <br />lowest of the following amounts: <br />• An amount determined by SAHA, not to exceed 110 percent of the applicable fair market <br />rent (or any HUD-approved exception payment standard) for the unit bedroom size minus <br />any utility allowance; <br />• The reasonable rent; or <br />• The rent requested by the owner. <br />Certain Tax Credit Units [24 CFR 983.301(c)] <br />For certain tax credit units, the rent limits are determined differently than for other PBV units. <br />Different limits apply to contract units that meet all of the following criteria: <br />• The contract unit receives a low-income housing tax credit under the Internal Revenue Code <br />of 1986; <br />• The contract unit is not located in a qualified census tract; <br />• There are comparable tax credit units of the same bedroom size as the contract unit in the <br />same project, and the comparable tax credit units do not have any form of rental assistance <br />other than the tax credit; and <br />• The tax credit rent exceeds 110 percent of the fair market rent or any approved exception <br />payment standard; <br />For contract units that meet all of these criteria, the rent to owner must not exceed the lowest of: <br />• The tax credit rent minus any utility allowance; <br />• The reasonable rent; or <br />• The rent requested by the owner. <br /> <br />3-422