Rent Limit. The rent limit is the maximum rent that can be paid for a unit of a given size which must not exceed 150 percent of HUD’s Fair Market Rent (FMR). Rent calculations must include the cost of utilities as detailed on utility allowance schedules established by the local Housing Authority. Payment of rents in excess of 150 percent of FMR requires prior approval by Commerce.
Rent Limit. Lead/subgrantees must set a rent limit policy for their service area using a percentage of HUD’s Fair Market Rent (FMR). The rent limit is the maximum rent subsidy that can be paid for a unit of a given size. Published HUD FMR values include rent and utility costs. The established rent limit must include both rent and utilities. The policy may also include a description of how exceptions are made to the rent limit when circumstances require a rent amount that exceeds the limit. If a rent limit policy exceeds 120% FMR, lead/subgrantees must submit the rationale to Commerce by January 30, 2016. Commerce will approve or disapprove of rent limit policies exceeding 120% FMR.
Rent Limit. Section 3(a) shall be amended and restated as follows:
Rent Limit. Lead/subgrantees must use a rent limit policy that is used consistently for all units receiving a rent subsidy, including arrears, and must be completed before the rent subsidy is paid. The rent limit is the maximum rent subsidy that can be paid for a unit of a given size.
