§ 882.320 - Initial contract rent.

(a) General. The maximum initial Gross Rent and Contract Rent for Shared Housing will be determined in accordance with § 882.106, as modified by this section.

(b) Fair Market Rent limitation. The PHA applies the Fair Market Rent limitation in § 882.106(a) by not permitting the initial Gross Rent for a Family to exceed the Pro Rata Portion of the published Fair Market Rent or of a higher rent, as approved by the PHA in accordance with § 882.106(a), for the entire unit.

(c) Rent reasonableness limitation. The PHA applies the rent reasonableness limitation in § 882.106(b), by taking the following actions for determining rent under each Shared Housing Contract:

(1) Certifying that the Contract Rent for a Family does not exceed the Pro Rata Portion of a reasonable rent for the entire unit, as determined under the standards in § 882.106(b)(1)(i);

(2) Certifying that the Contract Rent for a Family does not exceed rents currently being charged by the Owner for comparable unassisted units; and

(3) Following the requirements of §§ 882.106 (b)(2) and (b)(3).

(d) [Reserved]

(e) Proration. For purposes of this section, the “Pro Rata Portion” is calculated by multiplying the amounts specified in paragraphs (b) and (c) of this section by a ratio derived by dividing the number of bedrooms in the Private Space available for occupancy by an assisted Family by the total number of bedrooms in the unit. For example, for an assisted Family entitled to occupy three bedrooms of a five-bedroom unit, the ratio would be 3/5. In the special case of two individuals sharing a one-bedroom unit, the ratio for the assisted Family is 1/2.