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Notice Listings on Phase-In of Flat Rents
Notice Section 1.6.C PBV Resident Rights and Participation Notice Section 1.7.B PBRA Resident Rights and Participants Notice Section 1.6.C.4 Phase-in of Tenant Rent Increases Notice Section 1.7.B.3 Phasae-in of Tenant Rent Increases
Documents on Phase-In of Flat Rents

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Questions on Phase-In of Flat Rents

Phase-in of Rent Increases

Phase in of rent increases – during phase in period, is the difference between the phased in amount and contract rent covered by subsidy?

Yes.

RAD PBRA Conversion Rent Phase In

We are a PHA converting to PBRA which currently has Flat Rent tenants. Is there some provision in the 50059 to allow us to phase in their rent according to our policy that it not increase by more than $25 per month as a result of conversion? We will need to phase these individuals in for five years.

The 50059 form does not currently have such a provision, but TRACS will allow the phase-in. The RAD team has been advised that "TRACS accepts the 50059 and sends an error message to the owner indicating the rent paid by the tenant does NOT meet 30% of adjusted income. However, it’s not a fatal message error. TRACS 202d will implement a rent override indicator for audit purposes."

Phase in of Flat Rents after RAD Conversion

My project has a family that is currently paying a “flat rent.” Per PIH Notice 2014-12, PHAs are now required to update these flat rents, where applicable, and offer residents a phase-in of 35% a year. How will this phase-in of flat rents impact the resident when we convert to RAD?

Let’s assume the tenant is now paying $200 in rent but the new amount, under public housing flat rent, is $400. The family’s recertification is July 1. So, the PHA raises the rent in July to $270. Let’s further assume that the project converts in August. The flat rent phase-in "schedule" that a tenant was going to undergo in public housing is now irrelevant. If, at the time of conversion this tenant was paying $270, but the tenant's TTP under section 8 is $500, then the rent will phase in from $270 to $500 over 3 or 5 years (note: the public housing flat rent target of $400 doesn't matter anymore). Since the next recertification would be the following July, the 3-5 year phase in for RAD wouldn't start until July 2015. As a result, the PHA will not run into the problem of a tenant's rent increasing twice in one year.

Calculated Total Tenant Payment (TTP) Cap

The RAD Notice refers to the “calculated” TTP. Is this capped at the RAD gross rent?

No. The calculated TTP is determined only by the household’s adjusted income.

Flat Rent Requirements

If a PHA has received a CHAP award, are they required to comply with the new Public Housing Flat Rent requirements?

Yes, the PHA must comply with the flat rent requirements, until the RAD conversion date.

Rent Increase for Flat Rent Tenants

The PHA is concerned that tenants currently paying a flat rent may not be able to handle the rent increase that could result from the TTP. Although the tenant may stay in place, their rent could rise considerably. Will the phasing of rent increases apply in this case?

The flat rents no longer apply after the RAD conversion. Post-conversion, rents will be in accordance with the PBV or PBRA HAP contract. If the resulting rent increase is more than 10%, the RAD phase-in rules would apply

Phase-In for EID Households

Can RAD households who are currently receiving an Earned Income Disregard (EID), receive a rent phase-in at conversion if the household’s monthly rent increases by more than the greater of 10% or $25 purely as a result of the conversion? Section 1.7.B.7 of the RAD Notice states “tenants whose EID ceases or expires after conversion shall not be subject to the rent phase-in provision, as described in Section 1.7.B.3; instead, the rent will automatically be adjusted to the appropriate rent level based upon tenant income at that time.

Yes, RAD households who are currently receiving an EID are eligible to receive a rent phase-in at conversion if the household’s monthly rent increases by more than the greater of 10% or $25 purely as a result of the conversion. Section 1.7.B.7 of the RAD Notice refers to the point in time when the EID ceases or expires. The result is the inclusion of income that was previously disregarded and an increased monthly rent. This increase in monthly rent, which occurs because of the inclusion of the previously disregarded income, is not subject to phase-in and any phase-in that was in effect ceases.