Exhibits
The affordability (i.e. 40%) test does NOT apply for in-place ARs even if the gross rent exceeds the PS.
Contract Rent increases must meet 'rent reasonableness' standards as evidenced by comparables. If comparables cannot be found, renegotiate the rent (or utility/appliance provider) within allowable limits or the tenant must relocate to an eligible unit to retain their subsidy.
The subsidy amount (MSHDA payment) may not increase. The Gross Rent (Contract Rent plus Utility Allowance) can exceed the PS if the family agrees to pay the difference (assuming the Contract Rent is reasonable).
If no contract rent increase or utility change, no further action is needed. (per the MSHDA 52), print and submit a copy of the Rent Reasonable Certificate with the file. Indicate in writing on the Rent Reasonable Certificate that comparables are not required. The Rent Reasonable Certificate would be located in Part 4 (Landlord Section).
Note: Counties where there has been a decrease in the FMR (and subsequently PS), require a rent reasonableness review, which may necessitate a Contract Rent decrease. If this occurs, MSHDA will provide instructions.
See Chapter VII, Rent Reasonableness, for further information.