4-1 SUBMISSION ANNUAL ADMIN PLAN_EXHIBIT 3

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Families, owners, and members of the public may submit comments on the written schedules discussed in this part for consideration during the next revision , at any time, cycle. SAHA will maintain documentation to support its annual review of payment standards and utility allowance schedules. This documentation will be retained for at least 3 years. Establishing and updating the PHA passbook rate, which is used to calculate imputed income from assets, is covered in Chapter 6 (see Section 6-I.G.). 16-II.B. PAYMENT STANDARDS \[24 CFR 982.503; HCV GB, Chapter 7\] The payment standard sets the maximum subsidy payment a family can receive from the PHA each month \[24 CFR 982.505(a)\]. Payment standards are based on fair market rents (FMRs) published annually by HUD. FMRs are set at a percentile within the rent distribution of standard quality rental housing units in each FMR area. For most jurisdictions FMRs are set at the 40th percentile of rents in the market area. The PHA must establish a payment standard schedule that establishes payment standard amounts for each FMR area within the PHA jurisdiction, and for each unit size within each of the FMR area. For each unit size, the PHA may establish a single payment standard amount for the whole FMR area, or may set different payment standards for different parts of the FMR area. Unless HUD grants an exception, the PHA is required to establish a payment standard within a basic between 90 and 110 percent of the published FMR for each unit size. Updating Payment Standards When HUD updates its FMRs, the PHA must update its payment standards if the standards are no longer within the basic range \[24CFR 982.503(B)\]. HUD may require the PHA to make jurisdiction are unacceptably high \[24 CFR 982.503(g)\]. SAHA Policy SAHA will review the appropriateness of the payment standards on an annual basis when the new FMR is published. In addition to ensuring the payment standards are always SAHA will consider the following factors when determining whether an adjustment should be made to the payment standard schedule: Funding Availability : SAHA will review the budget to determine the impact projected subsidy adjustments will have on funding available for the program and the number of families served. SAHA will compare the number of families who could be served under revised payment standard amounts with the number assisted under current payment standard amounts. Rent Burden of Participating Families: Rent burden will be determined by identifying the percentage of families, for each unit size, that are paying more than 30 percent of their monthly adjusted income as the family share. When 40 percent or more of families, for any given unit size, are paying more than 30 04/01/14 Page 16-3