Date Published: August 2017
Yes. If one or more projects that currently receives funds for rental assistance where the grant amount is based on Fair Market Rent (FMR) chooses to reduce their grant amount by requesting actual rents instead of FMR, CoCs may reallocate the difference between the Annual Renewal Amount (ARA) on the FY 2017 Grant Inventory Worksheet (GIW) and the actual amount requested by a renewal project applicant in the application. Before requesting a rental assistance amount that is based on an amount less than FMR, though, the renewal project must ensure the move from FMR to actuals will yield sufficient ongoing funding for the rental assistance units as HUD will continue to expect the renewal project to serve the same number of people in the same number of units.
Note: Any new projects created through reallocation that request rental assistance funding must request an amount based on the full FMR amounts for the initial grant term.