Title
Resolution to Approve the CY 2018 Public Housing Flat Rents
Memorandum
The Department of Housing and Urban Development (HUD) requires the AAHC to set flat rents annually. Chapter 16 of the Admissions and Continued Occupancy Policy (ACOP) describes HUD regulations and the AAHC's policies regarding flat rent. Flat rents are designed to encourage self-sufficiency and to avoid creating disincentives for continued residency by families who are attempting to become economically self-sufficient.
Once each year, the AAHC must offer families the choice between a flat rent and an income-based rent. The family may not be offered this choice more than once a year.
However, a family can opt to switch from flat rent to income-based rent at any time if they are unable to pay the flat rent due to financial hardship. If the PHA determines that a financial hardship exists, the PHA must immediately allow the family to switch from flat rent to the income-based rent.
16-II.B. FLAT RENTS [24 CFR 960.253(b)]
PIH Notice 14-12: Paragraph (2)(B)(i) of Section 3(a) of the United States Housing Act of 1937 (the Act), as amended by Section 210, establishes new parameters that PHAs must use when determining the flat rent amounts.
Specifically, flat rents must now be set at no less than 80 percent of the applicable Fair Market Rent (FMR); and Section 210 also establishes that PHAs may, but are not required to lower flat rents to 80% of the applicable FMR in years when the FMR decreases from the previous year.
The AAHC adopted the following policy in 2015:
Annually, Flat rents will be set as follows:
* PHA will conduct a Rent Reasonable study as defined in 24 CFR Part 960.253(b)
* If the flat rent, as determined by the rent reasonableness study, is at least 80 percent of the FMR, PHA will set flat rents at the amount determined by the rent reasonableness study;
* If the flat rent, as determined by the rent reasonableness study, is less than 80 percent of the FMR, PHA will set f...
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