Chapter VIII: Annual Re-Examinations


Section R: Subsidized Developments

Refer to Chapter VI, Initial Contracts, for additional information about and/or the definition of a subsidized development.

The HUD Tenancy Addendum requires a 60-day written notice to the tenant and MSHDA of any Contract Rent increase.

Upon verified approval by Rural Development, MSHDA, or HUD, the Contract Rent may increase. The MSHDA 52 completed by the landlord can document proof of rent increase requests or the annual increase schedule provided by MSHDA’s Management Division with a note whether the landlord will use his own lease. Note: If the Gross Rent exceeds the PS, the increase affects the Tenant Rent.

Always use the basic (not market) rent charged for the unit as the Contract Rent (Basic Rent = Contract Rent).

HUD requires three Rent Surveys for subsidized development rent increases. See Chapter VII – Rent Reasonableness/Comparables for more information.

Upon request, print the Family Report (HUD 50058) and forward it to the development.