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
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 G: Calculating HAP Payments

When a family with an enhanced voucher remains “in-place” (or moves to an appropriate size unit within the development) AND the new gross rent exceeds the applicable payment standard and is rent reasonable; the HAP equals the new gross rent for the unit minus the GREATER of:

• 30% of the monthly adjusted family income, or
• 10% of the family gross monthly income, or
• the gross rent (TTP or family contribution for an assisted family) that the family was paying on the date of the prepayment/ termination; i.e. minimum tenant rent.

When a family with an enhanced voucher moves from the preservation/opt-out development (except in cases where a family is moving to an appropriate size unit within the development), the HAP equals the LESSER of:

1. MSHDA’s applicable county PS minus 30% of the monthly adjusted family income; or
2. The gross rent of the family’s new unit minus the GREATER of:
   1. Ten (10) percent of the family gross monthly income, or
   2. The amount of gross rent minus 30% of the monthly adjusted family income.

At conversion, if the TTP exceeds the PS, (i.e., zero HAP) the tenant is not eligible for assistance. Assistance cannot be delayed until a later date. Forward a 1634b (Application/ Program Denial) to cancel the voucher offer for the family. To be considered at some future date, the tenant must make application when the desired waiting list is open.

If the family will not pay more than 30% of adjusted monthly income for gross rent after the rent increase, the family is not eligible to receive the enhanced subsidy. This applies even if the family has met the income requirement. If a family is denied for this reason, the applicant’s file should be kept for three years. If the family’s circumstances change and they become income eligible and are still in the same unit within three years of the initial offering, they are then allowed to be assisted on the program with a regular HCV.