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gain to prevent evictions and maintain positive landlord relationships. <br />There are many ways to partner with a DRC. The following list is not comprehensive and <br />grantees should work towards a partnership that makes sense for their community. <br />✓ Embed a release of information in your intake process to be able to communicate <br />with DRC staff. <br />✓ Train DRC staff on Eviction Prevention program eligibility. <br />✓ Receive Eviction Prevention referrals from the DRC. <br />✓ Engage with DRC staff to help resolve communication challenges between landlords <br />and households. <br />✓ Invite DRC staff to participate in rent assistance provider meetings. <br />✓ Partner households with DRC staff to help establish repayment plans when appropriate. <br />8.4 Payment Standards to Determine Rent Limit <br />Lead/subgrantees must choose either the HUD Fair Market Rent or the Rent Reasonableness payment <br />standard to be used for all units receiving a rent subsidy, including arrears, and must be completed <br />before the rent subsidy is paid. <br />8.4.1 Payment Standards Options <br />8.4.1.1 HUD's Fair Market Rent <br />Fair Market Rent (FMR) sets rent limits on the subsidy provided to the household. FMR is established <br />by HUD (http://www.huduser.org/portal/datasets/fmr.htm1) and is updated each federal fiscal year <br />(October 1). For this grant, rent calculations do not need to include the cost of utilities. <br />If a hotel/motel room is being used as permanent housing, compare it to a studio/efficiency unless the <br />room is a suite with separate bedrooms. <br />Lead/subgrantees must set a rent limit policy for their service area using a percentage of FMR that <br />does not exceed 150 percent FMR. The rent limit is the maximum rent that can be paid for a unit of a <br />given size. <br />M <br />8.4.1.2 Rent Reasonableness <br />Rent reasonableness means the total rent charged for a unit must be reasonable in relation to the <br />rents being charged during the same time period for comparable units in the private unassisted market <br />and must not be in excess of rents being charged by the owner during the same time period for <br />comparable non -luxury unassisted units. <br />To make this determination, the grantee should consider (a) the location, quality, size, type, and age of <br />the unit; and (b) any amenities, housing services, maintenance and utilities to be provided by the <br />owner. Comparable rents can be checked by using a market study, by reviewing comparable units <br />advertised for rent, or with a note from the property owner verifying the comparability of charged <br />rents to other units owned (for example, the landlord would document the rents paid in other units). <br />For more information, see HUD's guide at htt s://files.hudexchan e.info/resources documents CoC- <br />Rent-Reasonableness-and-FMR. df. <br />Page 142 <br />