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

Rents requested by owners of multi-family units will be reviewed for rent reasonableness. If the
rent comparison meets the owner’s requested rent, this rent will be established rent for all like
units at the property.
D. RENT TO OWNER
The rent to owner is limited by rent reasonableness. The PHA must demonstrate that the rent to
owner is reasonable in comparison to rent for other comparable unassisted units.
The only other limitation on rent to owner is the maximum rent burden permissible at initial
occupancy (24 CFR 982.508). At the time a family initially receives tenant-based assistance for
occupancy of a dwelling unit, whether it is a new admission or a move to a different unit, if the
gross rent for the unit exceeds the applicable payment standard for the family, the family share
may not exceed 40 percent of the family's monthly adjusted income. During the initial term of
the lease, the owner may not increase the rent.
1. Making Payments to Owners [24 CFR 982.451]
Once the HAP contract is executed, the PHA begins processing payments to the landlord. A
HAP Register will be used as a basis for monitoring the accuracy and timeliness of payments.
Changes are made to the HAP Register for the following month. Payments are disbursed to the
owner each month. Lost or stolen payments will be replaced upon receipt of an executed
affidavit from the payee.
2. Excess Payments
The contract rent is the established rent. The owner must immediately return any excess subsidy
payment to the PHA and any excess participant portion to the tenant.
Owners who do not return excess payments will be subject to penalties as outlined in the
“Owner or Family Debts to the PHA" chapter of this Administrative Plan.
3. Late Payment Penalty
The PHA must make Housing Assistance Payments to the owner promptly and in accordance
with the HAP contract. If Housing Assistance Payments are not paid promptly when due after
the first two calendar months of the HAP contract term, the PHA shall pay the owner penalties in
accordance with generally accepted practices and law, as applicable in the local housing market,
governing penalties for late payment by a tenant. However, the PHA shall not be obligated to
pay any late payment penalty if HUD determines that the late payment by the PHA is due to
factors beyond the PHA’s control. Moreover, the PHA shall not be obligated to pay any late
payment penalty if Housing Assistance Payments by the PHA are delayed or denied as a remedy
for owner breach of the HAP contract (including any of the following PHA remedies: recovery
of overpayments, suspension of Housing Assistance Payments, abatement or reduction of
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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