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

The PHA will not approve a lease until the PHA determines that the initial rent to owner is a
reasonable rent.
The PHA must redetermine the reasonable rent for any of the following reasons:
Before an increase in rent to owner;
If there is a five (5) percent decrease in the published Fair Market Rent (FMR) in effect
60 days before the contract anniversary (for the unit size rented by the family) as
compared with the FMR in effect one year before the contract anniversary;
If directed by HUD and based on a need identified by the PHA’s auditing system;
The PHA may also redetermine the reasonable rent at any other time.
At all times during the assisted tenancy, the rent to the owner may not exceed the reasonable
rents as most recently determined or redetermined by the PHA.
The PHA may use an independent third party source to collect and maintain data on market rents
in the PHA’s jurisdiction.
In providing data to the PHA, the independent third party source must operate in compliance
with the request for proposal (RFP) and contract.
Rent Reasonableness Methodology
The rent for a unit proposed for HCVP assistance will be compared to the rent charged for
unassisted comparable units in the same market area. Typically units may be similar, but not
exactly like the unit proposed for HCVP assistance. Therefore, the PHA may make upward and
downward dollars adjustments for differences between the HCVP unit and the comparables to
determine the reasonable rent for the HCVP unit.
The adjustment must reflect the local market. Not all differences in the units require
adjustments.
Dwelling units in multi-family buildings (must have four or more suites)
In determining the reasonableness of rents for unassisted units located in a multifamily project,
the rents charged for at least three comparable units by bedroom size, located at the property and
not assisted under a federal, state, or local program, shall constitute comparable rents.
Building rent is applicable to all structures that have four or more units of comparable size.
Once approved, the building rent will remain in effect for one year. Rents may be renewed
annually.
All tenants who desire to move into a structure that has building rent will pay the established
rent. There will be no deviations from this established amount.
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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