4-1 SUBMISSION ANNUAL ADMIN PLAN_EXHIBIT 3

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The rent to owner is redetermined by written notice by the PHA to the owner specifying the amount of the redetermined rent. The PHA notice of rent adjustment constitutes an amendment of the rent to owner specified in the HAP contract. The adjusted amount of rent to owner applies for the period of 12 calendar months from the annual anniversary of the HAP contract. SAHA Policy SAHA will provide the owner with at least 30 days written notice of any change in the amount of rent to owner. 17-VIII.C. REASONABLE RENT \[24 CFR 983.303\] At the time the initial rent is established and all times during the term of the HAP contract, the rent to owner for a contract unit may not exceed the reasonable rent for the unit as determined by the PHA. When Rent Reasonable Determinations are Required The PHA must re-determine the reasonable rent for a unit receiving PBV assistance whenever any of the following occur: There is a five percent or greater decrease in the published FMR in effect 60 days before the contract anniversary (for the unit sizes specified in the HAP contract) as compared with the FMR that was in effect one year before the contract anniversary date; The PHA approves a change in the allocation of responsibility for utilities between the owner and the tenant; The HAP contract is amended to substitute a different contract unit in the same building; or There is any other change that may substantially affect the reasonable rent. How to Determine Reasonable Rent The reasonable rent of a unit receiving PBV assistance must be determined by comparison to rent for other comparable unassisted units. When making this determination, the PHA must consider factors that affect market rent. Such factors include the location, quality, size, type and age of the unit, as well as the amenities, housing services maintenance, and utilities to be provided by the owner. Comparability Analysis For each unit, the comparability analysis must use at least three comparable units in the private unassisted market. This may include units in the premises or project that is receiving project- based assistance. The analysis must show how the reasonable rent was determined, including major differences between the contract units and comparable unassisted units, and must be retained by the PHA. The comparability analysis may be performed by PHA staff or by another qualified person or entity. Those who conduct these analyses or are involved in determining the housing assistance payment based on the analyses may not have any direct or indirect interest in the property. 04/01/14 Page 17-33