2013 CMHA HCVP Admin Plan - Cuyahoga Metropolitan Housing ...

XI. CHAPTER 11-PAYMENT STANDARDS, RENT REASONABLENESS, AND
OWNER RENTS
A. INTRODUCTION
The PHA will determine rent reasonableness in accordance with 24 CFR 982.507(a). It is the
PHA's responsibility to ensure that the rents charged by owners are reasonable based upon
unassisted comparables in the rental market, using the criteria specified in 24 CFR 982.507(b)
and Notice PIH 2003-12.
This chapter explains the PHA's procedures for determination of payment standards, rent
reasonableness and rent to owner.
B. PAYMENT STANDARDS (24 CFR 982.503]
The Payment Standard is used to calculate the Housing Assistance Payment for a family. In
accordance with HUD regulations, and at the PHA's discretion, the voucher payment standard
amount is set by the PHA between 90 and 110% of the HUD published Fair Market Rent (FMR).
In order to maximize the number of existing households on the program, the PHA’s payment
standard is currently set at 90 – 110% of the FMR, unless HUD approves an exception payment
standard. The PHA reviews the appropriateness of the payment standard annually when the new
FMRs are published to ensure that dollar amounts remain within the acceptable range of 90 –
110% of the newly published FMR, and/ or when budgetary constraints warrant.
With HUD Field Office approval, on a case by case basis, the PHA may approve a higher
payment standard if required as a reasonable accommodation for a family that includes a person
with disabilities. The following criteria will be used:
1) Unit adaptations necessitated by the disability; or
2) The unit’s proximity to caregivers or service providers.
Changes in Payment Standards
Whenever HUD adjusts the FMR, the PHA will assess the adequacy of its payment standard.
The effective date will generally be 120 days after publication of the FMRs due to re-exams in
process.
The PHA may review its budget to determine whether it is feasible to maintain the Payment
Standard at its current levels. For this purpose, the PHA will compare the number of families
that could be served under a lower Payment Standard with the number of families served at the
100% level.
C. RENT REASONABLENESS [24 CFR 982.507]
The PHA will determine and document on a case-by-case basis that the approved rent is
reasonable in comparison to rent for other comparable unassisted units in the market.
Copyright 2000 by Nan McKay & Associates
To be printed only with permission of Nan McKay & Associates
Unlimited copies may be made for internal use
Approved by CMHA Board of Commissioners
October 3, 2012
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