CMHA and The Nelrod Company Community Focus Group Meeting - An Intro to HCV Rent Reasonableness
CMHA’s Mission Statement To provide quality affordable housing solutions by building partnerships with Hamilton County communities while strengthening and expanding housing opportunities for families to achieve self-sufficiency.
Assisted Housing in the U.S. Source:
How does Assisted HousingBenefit the Community? • Provides workforce supply and allows businesses to access employees who live close to their jobs • Generates property taxes – HCV and PBS8 • Generates maintenance and management fees spent in the neighborhoods • Expands low-income housing opportunities • Increases diversity throughout the county • Bolsters rental occupancy rates in a soft market
Where can a HCV Tenant Live in Hamilton County? • Federal law permits a CMHA Housing Choice Voucher tenant to live in almost any rental property in Hamilton County that meets HUD guidelines when the owner is willing to accept a Voucher. • There are no special qualifications, but the property owner must be willing to comply with rent restrictions and housing quality standards. • CMHA HCV owners are required to abide by all Federal, state and local laws. • CMHA HCV owners are required to continuously maintain rental units in compliance with federal Housing Quality Standards (HQS), local housing codes and CMHA guidelines. • CMHA HCV owners are required to screen and approve each renter, collect a security deposit from the renter, execute an acceptable lease with renter, execute a Housing Assistance Payment (HAP) Contract with CMHA and proactively enforce the lease.
CMHA is… Seeking community input on Rent Reasonableness
What is Rent Reasonableness? • Rent Reasonableness (RR) is the HUD mandated process that PHAs use to ensure that approved HCV program rents are “reasonable”. • “Reasonable” is defined as what a knowledgeable consumer would pay for rent in a particular rental market.
Goals of Rent Reasonableness • To ensure that program participants pay rents that are comparable with the market • To ensure that program rents do not adversely affect the jurisdictional rental market • To ensure effective disbursement of agency HAP dollars
When is a RR Assessment Required? • Before execution of a HAP Contract • Before granting a requested increase in rent to owner • If there is a 5% FMR decrease • Whenever HUD requires
Rent Comparability • The RR assessment establishes that the proposed Owner Rent is: • Comparable to similar unassisted units in the marketplace, and • Comparable to similar units on the premises
CMHA’s Rent Reasonableness Task Force • CMHA used a competitive bidding process to select a RR vendor. • The Nelrod Company was awarded the opportunity to perform all data collection and analysis for CMHA’s 2010 Rent Reasonableness study. • The Nelrod Company is responsible for collecting additional specialized data from local community agencies and government groups. • The community information will help to guide data collection efforts and final analysis.