3 - PUBLIC HEARING ANNUAL ACTION PLAN

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Administrative Plan 4/1/2016 Page 17-36 SAHA Policy Upon request by the owner, SAHA will consider using the FMR or utility allowances in effect during the 30-day period before the start date of the HAP, or redetermination of rent. The owner must explain the need to use the previous FMRs or utility allowances and include documentation in support of the request. SAHA will review and make a decision based on the circumstances and merit of each request. In addition to considering a written request from an owner, SAHA may decide to use the FMR or utility allowances in effect during the 30-day period before the start date of the HAP, or redetermination of rent, if SAHA determines it is necessary due to budgetary constraints. Redetermination of Rent [24 CFR 983.302] SAHA must redetermine the rent to owner upon the owner’s request or when there is a five percent or greater decrease in the published FMR. Rent Increase If an owner wishes to request an increase in the rent to owner from SAHA, it must be requested at the annual anniversary of the HAP contract (see Section 17-V.D.). The request must be in writing and in the form and manner required by SAHA. SAHA may only make rent increases in accordance with the rent limits described previously. There are no provisions in the PBV program for special adjustments (e.g., adjustments that reflect increases in the actual and necessary expenses of owning and maintaining the units which have resulted from substantial general increases in real property taxes, utility rates, or similar costs). SAHA Policy An owner’s request for a rent increase must be submitted to SAHA 60 days prior to the anniversary date of the HAP contract, and must include the new rent amount the owner is proposing. If the request for increase in the rent is not received 60 days prior, the effective date will be moved accordingly. SAHA may not approve and the owner may not receive any increase of rent to owner until and unless the owner has complied with requirements of the HAP contract, including compliance with HQS. The owner may not receive any retroactive increase of rent for any period of noncompliance. Rent Decrease If there is a decrease in the rent to owner, as established in accordance with program requirements such as a change in the FMR or exception payment standard, or reasonable rent amount, the rent to owner must be decreased regardless of whether the owner requested a rent adjustment, except where SAHA has elected within the HAP contract to not reduce rents below the initial rent under the initial HAP contract. Notice of Rent Change The rent to owner is redetermined by written notice by SAHA to the owner specifying the amount of the redetermined rent. SAHA notice of rent adjustment constitutes an amendment of the rent to owner specified in the HAP contract. The adjusted amount of rent to owner applies for the period of 12 calendar months from the annual anniversary of the HAP contract. 3-424