Project-Based Rent Assistance is defined as a residential home with rent assistance tied to the unit. The assistance can come from any source including the federal, state or local government but the resident generally pays no more than 30% of their adjusted income towards rent costs when living in the project-based unit (with some exceptions). Because resident rent payments are capped by the program itself, this policy does not apply to project based rent assistance properties when 100% of the units receive project based rent assistance.
HOME Project Based Units:
Rent collected in a HOME-funded unit with a Project-Based Voucher (PBV) in a designated Low-HOME unit occupied by a very low-income household may set rents up to the maximum PBV level (even if above FMR/HOME maximum): 24 C.F.R. 92.252(b)(2). This does NOT apply to designated High-HOME units. Designated High-HOME units must cap rents at the High HOME rent amount. Rent increases for these project-based units are exempt from the review criteria of this policy.
HOME units monitored by other Participating Jurisdictions (PJ’s) may utilize rent approval documents from the PJ. OHCS will require proof of the approved rent such as a letter from the PJ. HOME rents may not exceed LIHTC max or HOME max (unless PBV as outlined above).
Rural Development Units with LIHTC:
Rural Development project-based units are exempt from this rent increase policy. Gross rent does not include any rent payment to the owner of the unit to the extent such owner pays an equivalent amount to the USDA Rural Housing Service under Section 515 of the Housing Act of 1949. See IRC §42(g)(2)(B)(iv). As long as the owner pays Rural Development the rent amount over the limit (all of the overage) that unit is considered to be in compliance.
Non-USDA units with OHCS rent increase restrictions are bound by this policy.
Over Income Tenants in Project Based Units:
When a household’s income increases and/or the household is no longer eligible to receive project-based assistance, the rent charged must be adjusted to be at or below the property funding requirements based on the most restrictive funding source for the specific unit. Because the tenant is no longer receiving subsidy, this rent increase policy is applicable to these tenants.