§ 882.715 - Contract Rent adjustments.

(a) Contract Rents shall be adjusted as provided in paragraphs (a)(1) and (a)(2) of this section, upon request of the Owner. The unit, however, must be in Decent, Safe, and Sanitary condition, and the Owner must otherwise be in compliance with the terms of the Lease and the Contract. Subject to § 882.714(c) (the rent reasonableness limitation), adjustments to Contract Rents shall be as follows:

(1) Annual adjustments. (i) Annual adjustments as of any anniversary date shall be determined by using the applicable Section 8 Annual Adjustment Factor (part 888 of this chapter) most recently published by HUD in the Federal Register.

(ii) Contract Rents are subject to post-audit change in accordance with HUD requirements, including the correction of errors in establishing the initial Contract Rents or in adjusting the Contract Rents.

(2) Special adjustments. A PHA may make a special adjustment, subject to HUD approval, to reflect increases in actual and necessary expenses of owning and maintaining the unit that have resulted from substantial general increases in real property taxes, utility rates, or similar costs (i.e., assessments and utilities not covered by regulated rates), but only if and to the extent that the Owner clearly demonstrates that such general increases have caused increases in the Owner's operating costs which are not adequately compensated for by the annual adjustments provided in paragraph (a)(1) of this section. The Owner must submit financial statements to the PHA which clearly support the increase.

(b) Overall limitation. Notwithstanding any other provisions of this part, adjustments as provided in this section shall not result in material differences between the rents charged for assisted and comparable (as defined in § 882.714(c)) unassisted units, as determined by the PHA (and approved by HUD in the case of adjustments under paragraph (a)(2) of this section).

(c) During the period when assistance is being provided under the Contract, the PHA must, in accordance with HUD requirements, adjust the amount of the assistance, as provided by 24 CFR 12.52.

(Information collection requirements contained in this section have been approved by the Office of Management and Budget under control number 2502-0388)