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. Administrative Plan 7/1/2025 Page 11-19 <br />PART III: RECALCULATING FAMILY SHARE AND SUBSIDY AMOUNT <br />11-III.A. OVERVIEW <br />After gathering and verifying required information for an annual or interim reexamination, the <br />PHA must recalculate the family share of the rent and the subsidy amount and notify the family <br />and owner of the changes [24 CFR 982.516(d)(2), HCV 12-6 and 12-10]. While the basic <br />policies that govern these calculations are provided in Chapter 6, this part lays out policies that <br />affect these calculations during a reexamination. <br />11-III.B. CHANGES IN PAYMENT STANDARDS AND UTILITY ALLOWANCES <br />In order to calculate the family share of the rent and HAP amount correctly, changes in payment <br />standards, subsidy standards, or utility allowances may need to be updated and included in the <br />PHA’s calculations. <br />Specific policies governing how subsidy standards, payment standards, and utility allowances are <br />applied are discussed below. <br />Payment Standards [24 CFR 982.505 and FR Notice 5/7/24] <br />The family share of the rent and HAP calculations must use the correct payment standard for the <br />family, taking into consideration the family unit size, the size of unit, and the area in which the <br />unit is located [HCV GB, p. 12-5]. See Chapter 6 for information on how to select the <br />appropriate payment standard when the PHA changes its payment standard or when there is a <br />change in family composition. <br />Subsidy Standards [24 CFR 982.505(c)(4)] <br />If there is a change in the family unit size that would apply to a family during the HAP contract <br />term, either due to a change in family composition, or a change in the PHA’s subsidy standards <br />(see Chapter 5), the new family unit size must be used to determine the payment standard <br />amount for the family immediately or at the family’s first annual reexamination following the <br />change in family unit size. <br />Utility Allowances [24 CFR 982.517(d)] <br />The family share of the rent and HAP calculations must reflect any changes in the family’s utility <br />arrangement with the owner, or in the PHA’s utility allowance schedule [HCV GB, p. 12-5]. <br />Chapter 16 discusses how utility allowance schedules are established. <br />When there are changes in the utility arrangement with the owner, the PHA must use the utility <br />allowances in effect at the time the new lease and HAP contract are executed. <br />At reexamination, the PHA must use the PHA current utility allowance schedule [HCV GB, <br />p. 18-8]. <br />SAHA Policy <br />Revised utility allowances will be applied to a family’s rent and subsidy calculations at <br />the first annual reexamination after the allowance is adopted. <br />EXHIBIT 1