NSP FAQ
Q

How do the HOME rent standards affect NSP units?

Date Published: October 2012

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A

The NSP program has adopted 24 CFR Part 92.252(a) of the HOME rental requirements as a "safe harbor" when defining affordable rents, although grantees could have chosen an alternate approach if approved by HUD in their Action Plan. Therefore if the grantee chose to use the HOME rents as its standard, the maximum rents that can be charged are the lesser of:

  • The fair market rent for existing housing for comparable units in the area as established by HUD under 24 CFR Part 888.111; or
  • A rent that does not exceed 30 percent of the adjusted income of a family whose annual income equals 65 percent of AMI, as determined by HUD, with adjustments for number of bedrooms in the unit.

Note that these are the "high HOME rents" and the grantee may have chosen to use the "low HOME rents" for the units rented to households at 50 percent of AMI.

If a grantee adopts these HOME rental standards, then the rent must comply with the published HUD rent limits per bedroom size. View the HOME program rent limits.


Tags: NSP Rental Housing Development

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