- PBV Contract Terms.
- Method of Adjusting Contract Rents. Contract rents will be adjusted only by HUD’s OCAF at each anniversary of the HAP Contract, subject to the availability of appropriations for each year of the contract term.29 As such, section 8(o)(13)(I) of the Act and 24 CFR §§ 983.301 and 983.302, concerning rent determinations, shall not apply when adjusting rents. The rent to owner may at no time exceed the reasonable rent charged for comparable unassisted units in the private market, as determined by the Contract Administrator in accordance with 24 CFR § 983.303.30 However, the rent to owner shall not be reduced below the initial rent to owner for dwelling units under the initial HAP Contract.31 MTW agencies may not alter this requirement.
- Method of Adjusting Contract Rents. Contract rents will be adjusted only by HUD’s OCAF at each Anniversary of the HAP Contract, subject to (a) the availability of appropriations for each year of the contract term, and (b) the Maximum Rent, as defined below.43
The Maximum Rent is the higher of 140% of FMR (less utility allowances) or the market rents, as demonstrated by an RCS procured and paid for by the Project Owner. Where an RCS has been used to establish initial rents or to justify an OCAF adjusted rent that exceeds 140% of the FMR, the RCS will remain valid for five years, the Maximum Rent will not apply for the next four annual rent adjustments, and rents will be adjusted only by the OCAF during such period.
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