Housing Voucher Programs - Policy and Procedures Manual

Chapter XX Sections

1. HUD/MSHDA Responsibilities
2. Family Eligibility
3. Issuance of Enhanced Voucher
4. Unit Size
5. Enhanced Voucher Payment Standard/Rent Reasonableness
   1. Payment Standard (PS) for Families Remaining in Place
   2. Payment Standards (PS) for Families that Move
   3. Rent Reasonableness Documentation
6. Minimum Rent Requirement
7. Calculating HAP Payments
8. Re-examination Process
9. Rent Increases
10. Miscellaneous Program Requirements
11. Special Conditions after the First Year of Assistance
12. Elite and File Procedures
13. Special Administrative Fee Reporting
14. Definitions
15. Applicable Forms List

Chapter XX: Enhanced Subsidies For Housing Voucher Conversion Actions

Section E: Enhanced Voucher Payment Standard/Rent Reasonableness

1. Payment Standard (PS) for Families Remaining in Place

For families who choose to remain in place, the PS equals the new proposed gross rent, which MSHDA has agreed to based on rent comparability analysis. The PS equals the new gross rent for the unit after the opt-out or prepayment (provided the gross rent is reasonable based on comparable units). If the new gross rent exceeds the MSHDA published PS, the subsidy becomes “enhanced” in order to cover the difference between the PS and the new gross rent that family normally has to pay out-of-pocket. (Note: the enhanced PS [equal to the new gross rent] can exceed the published PS for the respective county). If the new gross rent is less than the current HCV PS, use the new gross rent to calculate the family subsidy. See the family unit size limitation discussed in Section D.

If the Total Tenant Payment (TTP) exceeds the applicable PS at conversion, then the tenant is not eligible for assistance.

2. Payment Standards (PS) for Families that Move

In ALL cases where the family decides to move from the development, HCV rules apply. (The PS equals the lesser of the new gross rent or PS).

This PS includes situations where the family must move in order to receive assistance because the proposed new rent for the family’s current unit in the preservation/opt out development is not reasonable in relation to comparable units.

3. Rent Reasonableness Documentation

When an in-place family receives an enhanced voucher, MSHDA ensures the rent reasonableness of the proposed gross rent for the family.

Rent reasonableness documentation must be provided in the Rent Reasonableness Module in Elite. If the proposed rent is not reasonable, the family must move in order to receive the enhanced voucher assistance.