Exhibit C-2 to Subpart C of Part 1930 - Notice of Approved Rent (Occupancy Charge) and Utility Allowance Change

Dear

You are hereby notified that the Farmers Home Administration (FmHA) or its successor agency under Public Law 103-354 has reviewed the request for a change in shelter costs for the ____ project(s), and considered all justifications provided by project management [and comments provided by tenants]. The FmHA or its successor agency under Public Law 103-354 has approved the following rent (occupancy charge) and/or utility allowance rates listed below. The changes for all units will become effective on ____, 19__. (Insert effective date shown in exhibit C-1 of this subpart or later effective date in accordance with last paragraph of exhibit C-1 of this subpart.) The change is needed for the following reasons:

(Insert Reasons for Approval)

The approved changes are as follows:

Unit sizePresent rent (occupancy charge)BasicNote rateApproved rent (occupancy charge)BasicNote rate

The approved utility allowance changes are as follows:

Unit sizePresent utility allowanceProposed utility allowanceApproved utility allowance

Should you have any questions or concerns, you may contact FmHA or its successor agency under Public Law 103-354. The FmHA or its successor agency under Public Law 103-354 Servicing Office address is:

(Use the following required and/or optional paragraphs where applicable.)

*You must notify the tenants (members) of FmHA or its successor agency under Public Law 103-354's approval of the rent (occupancy charge) and utility allowance changes by posting this letter in the same manner as the “Notice to Tenants (Members) or Proposed Rent (Occupancy Charge) and Utility Allowance Change (Exhibit C-1 of this subpart).” This notification must be posted in a conspicuous place and cannot be substituted for the usual written notice to each individual tenant (member).

*This approval does not authorize you to violate the terms of any lease (occupancy agreement) you currently have with your tenants (members).

**For those tenants (members) receiving rental assistance (RA), their costsfor rent (occupancy charge) and utilities will continue to be based on the higher of 30 percent of their adjusted monthly income or 10 percent of gross monthly income or if the household is receiving payments for public assistance from a public agency, the portion of such payments which is specifically designated by that agency to meet the household's shelter cost. If tenants are receiving Housing and Urban Development (HUD) Section 8 subsidy assistance, their costs for rent and utilities will be determined by the current HUD formula.

**Your application for RA units on behalf of eligible tenants (members) has been received (or is on hand). Since RA units are not available, the approved rate and/or allowance change is subject to your acceptance of the RA units should they become available.

**This rate and utility allowance change is conditioned on the requirement that you carry out energy conservation measures and operating practices as determined necessary by the project energy audit. You will be allowed ______ days for completion of the work. FmHA or its successor agency under Public Law 103-354 assistance may be available to finance any needed improvements.

**You may file an appeal regarding the rate and utility allowance change as approved within 45 days of the date of this notice. See attached Form FmHA or its successor agency under Public Law 103-354 1900-1, “Request for Appeal of Adverse Action,” for your appeal rights. A request for a hearing must be sent to the Area Supervisor, National Appeals Staff, (T3address), postmarked no later than (30 days from date of this letter).

*You must inform the tenants (members) of their right to request an explanation of the rate and utility allowance change approval decision within 45 days of the date of this notice by writing to (insert the name and address of next higher FmHA or its successor agency under Public Law 103-354 approval official). All tenants (members) are required to pay the changed amount of rent (occupancy charge) as indicated in the notice of approval.

*Any tenant who does not wish to pay the FmHA or its successor agency under Public Law 103-354 approved rent changes may give the owner a 30-day notice that they will vacate. The tenant will suffer no penalty as a result of this decision to vacate, and will not be required to pay the changed rent. However, if the tenant later decides to remain in the unit, the tenant will be required to pay the changed rent from the effective date of the changed rent.

Sincerely,

FmHA or its successor agency under Public Law 103-354 Approving Official *Required **Optional, as applicable