To be able to house a program participant in any unit with CoC Program funds, whether supported with leasing or rental assistance, the unit must meet rent reasonableness standards (§ 578.51(g)). A recipient or subrecipient cannot rent a unit that exceeds reasonable rent using CoC funds. Further, if the unit is paid for with leasing assistance, leasing funds cannot be used to pay above the Fair Market Rent (FMR) (§ 578.49(b)(2)). For more information, please see this comprehensive overview published by HUD.
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