[Code of Federal Regulations]

[Title 24, Volume 4]

[Revised as of April 1, 2006]

From the U.S. Government Printing Office via GPO Access

[CITE: 24CFR983.301]



[Page 676-678]

 

                 TITLE 24--HOUSING AND URBAN DEVELOPMENT

 

CHAPTER IX--OFFICE OF ASSISTANT SECRETARY FOR PUBLIC AND INDIAN HOUSING, 

               DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

 

PART 983_PROJECT-BASED VOUCHER (PBV) PROGRAM--Table of Contents

 

                         Subpart G_Rent to Owner

 

Sec.  983.301  Determining the rent to owner.





    (a) Initial and redetermined rents. (1) The amount of the initial 

and redetermined rent to owner is determined in accordance with this 

section and Sec.  983.302.

    (2) The amount of the initial rent to owner is established at the 

beginning of the HAP contract term. For rehabilitated or newly 

constructed housing, the Agreement states the estimated amount of the 

initial rent to owner, but the actual amount of the initial rent to 

owner is established at the beginning of the HAP contract term.

    (3) The rent to owner is redetermined at the owner's request for a 

rent increase in accordance with this section and Sec.  983.302. The 

rent to owner is also redetermined at such time when there



[[Page 677]]



is a five percent or greater decrease in the published FMR in accordance 

with Sec.  983.302.

    (b) Amount of rent to owner. Except for certain tax credit units as 

provided in paragraph (c) of this section, the rent to owner must not 

exceed the lowest of:

    (1) An amount determined by the PHA, not to exceed 110 percent of 

the applicable fair market rent (or any exception payment standard 

approved by the Secretary) for the unit bedroom size minus any utility 

allowance;

    (2) The reasonable rent; or

    (3) The rent requested by the owner.

    (c) Rent to owner for certain tax credit units. (1) This paragraph 

(c) applies if:

    (i) A contract unit receives a low-income housing tax credit under 

the Internal Revenue Code of 1986 (see 26 U.S.C. 42);

    (ii) The contract unit is not located in a qualified census tract;

    (iii) In the same building, there are comparable tax credit units of 

the same unit bedroom size as the contract unit and the comparable tax 

credit units do not have any form of rental assistance other than the 

tax credit; and

    (iv) The tax credit rent exceeds the applicable fair market rental 

(or any exception payment standard) as determined in accordance with 

paragraph (b) of this section.

    (2) In the case of a contract unit described in paragraph (c)(1) of 

this section, the rent to owner must not exceed the lowest of:

    (i) The tax credit rent minus any utility allowance;

    (ii) The reasonable rent; or

    (iii) The rent requested by the owner.

    (3) The ``tax credit rent'' is the rent charged for comparable units 

of the same bedroom size in the building that also receive the low-

income housing tax credit but do not have any additional rental 

assistance (e.g., additional assistance such as tenant-based voucher 

assistance).

    (4) A ``qualified census tract'' is any census tract (or equivalent 

geographic area defined by the Bureau of the Census) in which:

    (i) At least 50 percent of households have an income of less than 60 

percent of Area Median Gross Income (AMGI); or

    (ii) Where the poverty rate is at least 25 percent and where the 

census tract is designated as a qualified census tract by HUD.

    (d) Rent to owner for other tax credit units. Except in the case of 

a tax credit unit described in paragraph (c)(1) of this section, the 

rent to owner for all other tax credit units is determined pursuant to 

paragraph (b) of this section.

    (e) Reasonable rent. The PHA shall determine reasonable rent in 

accordance with Sec.  983.303. The rent to owner for each contract unit 

may at no time exceed the reasonable rent.

    (f) Use of FMRs and utility allowance schedule in determining the 

amount of rent to owner--(1) Amounts used. (i) Determination of initial 

rent (at beginning of HAP contract term). When determining the initial 

rent to owner, the PHA shall use the most recently published FMR in 

effect and the utility allowance schedule in effect at execution of the 

HAP contract. At its discretion, the PHA may use the amounts in effect 

at any time during the 30-day period immediately before the beginning 

date of the HAP contract.

    (ii) Redetermination of rent to owner. When redetermining the rent 

to owner, the PHA shall use the most recently published FMR and the PHA 

utility allowance schedule in effect at the time of redetermination. At 

its discretion, the PHA may use the amounts in effect at any time during 

the 30-day period immediately before the redetermination date.

    (2) Exception payment standard and PHA utility allowance schedule. 

(i) Any HUD-approved exception payment standard amount under 24 CFR 

982.503(c) applies to both the tenant-based and project-based voucher 

programs. HUD will not approve a different exception payment standard 

amount for use in the PBV program.

    (ii) The PHA may not establish or apply different utility allowance 

amounts for the PBV program. The same PHA utility allowance schedule 

applies to both the tenant-based and PBV programs.

    (g) PHA-owned units. For PHA-owned PBV units, the initial rent to 

owner



[[Page 678]]



and the annual redetermination of rent at the annual anniversary of the 

HAP contract are determined by the independent entity approved by HUD in 

accordance with Sec.  983.59. The PHA must use the rent to owner 

established by the independent entity.