AFS between KC and HopeSource CWS 26-27

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Page | 52 bedroom mobile home use three bedroom unit, etc. Lead/subgrantees must set a rent limit policy for their service area using a percentage of FMR that does not exceed 150 percent FMR. The rent limit is the maximum rent that can be paid for a unit of a given size. FMR must be documented in client files and show that the unit rent is within the FMR limit set by the program rent limit policy. OR Rent Reasonableness Rent reasonableness means the total rent charged for a unit (or mobile home lot space) must be reasonable in relation to the rents being charged during the same time period for comparable units (or mobile home lot space) in the private unassisted market and must not be in excess of rents being charged by the owner during the same time period for comparable non-luxury unassisted units. To make this determination, the grantee should consider (a) the location, quality, size, type, and age of the unit; and (b) any amenities, housing services, maintenance and utilities to be provided by the owner. Comparable rents can be checked by using a market study, by reviewing comparable units advertised for rent, or with a note from the property owner verifying the comparability of charged rents to other units owned (for example, the landlord would document the rents paid in other units). For more information, see HUD’s guide at https://files.hudexchange.info/resources/documents/CoC- Rent-Reasonableness-and-FMR.pdf. The rental assistance paid cannot exceed the actual rental cost. Lead/Subgrantees must establish rent reasonableness policies and procedures for documenting comparable rents. Policies and procedures must include: ✓ A methodology for documenting comparable rents ✓ Standards for certifying comparable rents as reasonable Documentation of rent reasonableness must be kept in the client file. HUD’s Rent Reasonableness Form or comparable form must be used, see HUD's worksheet on rent reasonableness at https://www.hudexchange.info/resource/2098/home-rent-reasonableness-checklist-and- certification/. Rent Limit Exceptions The FMR rent limit policy or rent reasonableness policies and procedures may also include a description of how exceptions are made when circumstances require a rent amount that exceeds the limit. 8.6 Landlord Verification To help prevent fraud, lead/subgrantees must verify that any new or previously unknown landlord or property management company is legitimately associated with the rental property before issuing a rent payment. This requirement does not apply when households are living with friends or family or in a hotel/motel unit.