ADMINISTRATIVE PLAN - San Antonio Housing Authority

18-VIII.C. REASONABLE RENT [24 CFR 983.303]At the time the initial rent is established and all times during the term of the HAP contract, therent to owner for a contract unit may not exceed the reasonable rent for the unit as determined bythe PHA.When Rent Reasonable Determinations are RequiredThe PHA must redetermine the reasonable rent for a unit receiving PBV assistance whenever anyof the following occur, unless such a redetermination would conflict with a HAP contractprovision to provide that the maximum rent on a unit shall not be less than the initial rent (see“Rent Decrease” above):There is a five percent or greater decrease in the published FMR in effect 60 days before thecontract anniversary (for the unit sizes specified in the HAP contract) as compared with theFMR that was in effect one year before the contract anniversary date;The PHA approves a change in the allocation of responsibility for utilities between the ownerand the tenant;The HAP contract is amended to substitute a different contract unit in the same building; orThere is any other change that may substantially affect the reasonable rent.How to Determine Reasonable RentThe reasonable rent of a unit receiving PBV assistance must be determined by comparison torent for other comparable unassisted units. When making this determination, the PHA mustconsider factors that affect market rent. Such factors include the location, quality, size, type andage of the unit, as well as the amenities, housing services maintenance, and utilities to beprovided by the owner.Comparability AnalysisFor each unit, the comparability analysis must use at least three comparable units in the privateunassisted market. This may include units in the premises or project that is receiving projectbasedassistance. The analysis must show how the reasonable rent was determined, includingmajor differences between the contract units and comparable unassisted units, and must beretained by the PHA. The comparability analysis may be performed by PHA staff or by anotherqualified person or entity. Those who conduct these analyses or are involved in determining thehousing assistance payment based on the analyses may not have any direct or indirect interest inthe property.PHA-owned UnitsFor PHA-owned units, the amount of the reasonable rent must be determined by an independentagency approved by HUD in accordance with PBV program requirements. The independententity must provide a copy of the determination of reasonable rent for PHA-owned units to thePHA and to the HUD field office where the project is located.© Copyright 2008 Nan McKay & Associates, Inc. 18-38Revised/Approved 04/08/10 (Eff: 07/01/10)Unlimited copies may be made for internal use.