Rents after decoupling start from fair market rents and may rise yearly
What the document says“``(i) shall determine the maximum initial rent based on current fair market rents established under section 8 of the United States Housing Act of 1937 (42 U.S.C. 1437f); and”
The new section 545 requires that any agreement extending a rental assistance contract oblige the owner to keep the project decent, safe, and sanitary and to run it as affordable housing. The Secretary must set the maximum initial rent from current fair market rents under section 8 of the United States Housing Act of 1937, and may adjust it each year by the operating cost adjustment factor under section 524 of the Multifamily Assisted Housing Reform and Affordability Act of 1997, unless the project's budget-based needs require a higher rent, in which case the Secretary may approve a budget-based rent level.
What the document actually says“``(i) shall determine the maximum initial rent based on current fair market rents established under section 8 of the United States Housing Act of 1937 (42 U.S.C. 1437f); and”
The farm agency sets the top starting rent. It uses the fair market rents from another housing law. Those figures are already worked out.
Fair market rent is a figure set for each area. It stands for what a modest home costs there. The rent may rise each year by a set factor.
No action is recorded against this proposal. That is not evidence that none has been taken, and nobody has yet read it against the record. See what the tracker does not yet cover.