If the newly revised AHP rent limits are lower than the previous years limits, do the rents for Qualifying Units have to be reduced immediately or at lease renewal?
Immediately. It is unusual for AHP rent limits to go down, but when they do, owners must revise rents for Qualifying Units that exceed the new limits immediately. However, rents are not required to be reduced below the initial approved rents in place at the time the building was sold by RTC/FDIC under the AHP to the original owner. Conversely, if the rent limits go up, owners may revise Qualifying Unit rents to reflect the new limits, subject to state/local laws and the terms of the lease regarding interim rent adjustments.
Related Questions
- When AHP units also have other Federal funds, such as Tax Credits or HOME, and the rent limits and occupancy rules of the overlapping programs differ, what rules should be followed?
- If the newly revised AHP rent limits are lower than the previous year’s limits, do the rents for Qualifying Units have to be reduced immediately or at lease renewal?
- Are AHP rent limits based on the size of the unit or the size of the household occupying the unit?
