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Administrative Plan 7/1/2025 <br />. <br />Page 8-29 <br />8-III.B. WHEN RENT REASONABLENESS DETERMINATIONS ARE REQUIRED <br />Owner-Initiated Rent Determinations <br />The PHA must make a rent reasonableness determination at initial occupancy and whenever the <br />owner requests a rent adjustment. <br />The owner and family first negotiate the rent for a unit. The PHA (or independent agency in the <br />case of PHA-owned units) will assist the family with the negotiations upon request. At initial <br />occupancy the PHA must determine whether the proposed rent is reasonable before a HAP <br />Contract is signed. The owner must not change the rent during the initial lease term. Subsequent <br />requests for rent adjustments must be consistent with the lease between the owner and the family. <br />Rent increases will not be approved unless any failed items identified by the most recent HQS <br />inspection have been corrected. <br />SAHA Policy <br />After the initial occupancy period, the owner may request a rent adjustment in accordance <br />with the owner’s lease. For rent increase requests after initial lease-up, SAHA may <br />request owners to provide information about the rents charged for other units on the <br />premises, if the premises include more than 4 units. In evaluating the proposed rents in <br />comparison to other units on the premises SAHA will consider unit size and length of <br />tenancy in the other units. <br />SAHA will determine whether the requested increase is reasonable within 14 calendar <br />days of receiving the request from the owner. The owner will be notified of the <br />determination in writing. <br />All rents adjustments will be effective the first of the month following 60 days after <br />SAHA’s receipt of the owner’s request or on the date specified by the owner, whichever <br />is later. <br />PHA and HUD-Initiated Rent Reasonableness Determinations <br />HUD requires the PHA to make a determination of rent reasonableness (even if the owner has <br />not requested a change) if there is a 10 percent decrease in the fair market rent that goes into <br />effect at least 60 days before the contract anniversary date. HUD also may direct the PHA to <br />make a determination at any other time. The PHA may decide that a new determination of rent <br />reasonableness is needed at any time. <br />SAHA Policy <br />In addition to the instances described above, SAHA will make a determination of rent <br />reasonableness at any time after the initial occupancy period if: (1) SAHA determines <br />that the initial rent reasonableness determination was in error or (2) SAHA determines <br />that the information provided by the owner about the unit or other units on the same <br />premises was incorrect. <br />EXHIBIT 1