Managing Rent, Costs, and Budgets

How much rent can be paid for a unit? (§ 578.51(g))

The total rent paid for a unit (including the subsidy and the tenant share) must meet rent reasonableness criteria. While the grant amount is based on the Fair Market Rent (FMR), a recipient/subrecipient can pay more than the FMR if the rent is reasonable and if there are sufficient funds in the CoC Program budget to do so.

Looking for definitions of the common CoC and ESG Program terms referenced throughout the Virtual Binders?

Virtual Binders Glossary

What other costs besides rent can rental assistance funds be used for?

In addition to rent, recipients and subrecipients may use rental assistance funds to pay for:

How should you manage your rental assistance budget?

Each recipient must set up a system to track and manage its rental assistance budget line item to ensure enough funds exist to cover the number of units the agency committed to serving for the grant period. This tracking system must consider the rent paid out of CoC funds and any additional eligible costs your program may choose to cover with CoC Rental Assistance funds such as vacancy payments, staff costs, security deposits, etc. If the program is new, consider waiting to cover some of these “non-rent” costs until staff have a good understanding of what reasonable rents will be and what the anticipated program participant’s rent contribution will be.