Laserfiche WebLink
Administrative Plan 7/1/2025 Page 17-86 <br />Owner-Requested Rent Increases [24 CFR 983.302(b)(4)] <br />If the HAP contract does not provide for automatic adjustment by an OCAF, and if an owner <br />wishes to request an increase in the rent to owner from the PHA, it must be requested at the <br />annual anniversary of the HAP contract (see Section 17-V.E.). The request must be in writing <br />and in the form and manner required by the PHA. The PHA may only make rent increases in <br />accordance with the rent limits described previously. There are no provisions in the PBV <br />program for special adjustments (e.g., adjustments that reflect increases in the actual and <br />necessary expenses of owning and maintaining the units which have resulted from substantial <br />general increases in real property taxes, utility rates, or similar costs). The administrative plan <br />must specify any advance notice the owner must give the PHA and the form the request must <br />take. <br />SAHA Policy <br />An owner’s request for a rent increase must be submitted to SAHA in writing (or via <br />email) 60 days prior to the anniversary date of the HAP contract and must include the <br />new rent amount the owner is proposing. <br />The PHA may not approve, and the owner may not receive any increase of rent to owner, until <br />and unless the owner has complied with requirements of the HAP contract, including compliance <br />with housing quality standards, except that housing quality standards compliance is not required <br />for units undergoing development activity that complies with 24 CFR 983.157 or substantial <br />improvement that complies with 24 CFR 983.212. The owner may not receive any retroactive <br />increase of rent for any period of noncompliance. <br />Rent Decrease [24 CFR 983.302(c)] <br />If the HAP contract does not provide for adjustment by an OCAF and there is a decrease in the <br />rent to owner, as established in accordance with program requirements such as a change in the <br />FMR or exception payment standard, or reasonable rent amount, the rent to owner must be <br />decreased regardless of whether the owner requested a rent adjustment. <br />If the HAP contract provides for rent adjustments by an OCAF and there is a decrease in the fair <br />market rent, tax credit rent, or reasonable rent that requires a decrease to the rent to owner, the <br />rent to owner must be decreased. <br />However, at any time during the term of the HAP contract, the PHA may elect within the HAP <br />contract to not reduce rents below the initial rent to owner. Where a PHA makes such an <br />election, the rent to owner shall not be reduced below the initial rent to owner, except: <br /> To correct errors in calculations in accordance with HUD requirements; <br /> If additional housing assistance has been combined with PBV assistance after the execution <br />of the initial HAP contract and a rent decrease is required; or <br /> If a decrease in rent to owner is required based on changes in the allocation of responsibility <br />for utilities between the owner and the tenant. <br />EXHIBIT 1