811 PRA FAQ
Q

When establishing the initial rents, do Grantees have the ability to use tax credit ceiling rent if they are above Fair Market Rents (FMRs)?

Date Published: October 2015

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A

If the tax credit ceiling rents are above FMRs, then the tax credit rents must be substantiated by a market study prepared in accordance with the requirements of a Grantee, the Section 8 Renewal Guide, or as approved by HUD based upon market survey data.

Reference: RAC, Part II, Section 2.7 (a), “Grantee and Owner agrees that in no circumstance may the initial RAC rent level exceed the applicable Section 8 Fair Market Rent (FMR) level as determined by HUD, unless such rent level is substantiated by a market study that has been prepared in accordance with the requirements of a state housing agency or of Chapter 9 of HUD’s Section 8 Renewal Guide or as approved by HUD.”


Tags: 811 PRA Program Requirements - Calculating Rents and Utility Allowances

FAQ ID:

2626