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Administrative Plan 7/1/2025 Page 16-6 <br />Payment Standards Greater than 110 Percent Up to 120 Percent: Upon notification to HUD, <br />a PHA may establish exception payment standards between 110 percent and 120 percent of the <br />applicable FMR if the PHA meets one of the following criteria: <br /> Success rate: Fewer than 75 percent of families to which the PHA has issued tenant-based <br />vouchers during the most recent 12-month period for which there is success rate data <br />available have become participants on the program; or <br /> Rent burden: More than 40 percent of families with tenant-based assistance pay more than 30 <br />percent of their adjusted income as their family share. <br />The PHA may revert back to the basic range at any time without notification to HUD. <br />PHAs may combine exception payment standards based on the SAFMR and exception payment <br />standards greater than 110 and up to 120 percent. <br />Other Exception Payment Standards: PHAs may request HUD approval to establish exception <br />payment standards up to 120 percent of the FMR when the above criteria do not apply or in order <br />to establish exception payment standards that exceed 120 percent of the FMR. Requests may be <br />made for an entire FMR area or a designated part of the FMR area. <br />Exception Payment Standards for VASH: In addition, HUD allows PHAs to establish a HUD- <br />Veterans Affairs Supportive Housing (HUD-VASH) exception payment standard. PHAs may go <br />up to but no higher than 120 percent of the FMR or SAFMR specifically for VASH families. <br />PHAs who want to establish a VASH exception payment standard over 120 percent must still <br />request a waiver from HUD (See Section 19-III.E.). <br />Once exception payment standards are adopted, the PHA may use the exception payment <br />standard for all units, or for only units of a particular size. The exception payment standard may <br />be established for a designated part of the FMR area (called an “exception area”) or for the entire <br />FMR area. Exception areas are typically county, city, town, ZIP code, or census tract areas. <br />However, so long as the exception area is no smaller than census tract block group, the PHA may <br />determine the area for the exception area. <br />SAHA Policy <br />SAHA may establish exception payment standards for Special Purpose Vouchers. <br /> <br />EXHIBIT 1