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HUD Housing Programs: Tenants’ Rights (The Green Book): 4.9.3.4 Preparing Comments on the Rent Increase Request

Because of the difficulty in obtaining judicial review of the substance of HUD’s determination,862 challenges to the merits of project-wide rent increases have better prospects in the administrative forum. Although the 30-day time period may not allow for in-depth review, tenants should take full advantage of the regulatory notice-and-comment process to review the proposal and its supporting documentation to determine if the proposed rent increase is warranted.

HUD Housing Programs: Tenants’ Rights (The Green Book): 4.9.3.6 Alternatives to Rent Increases

Proposed rent increases can be mitigated by finding additional sources of revenue for the development. There are three kinds of available funds: (1) additional rent subsidies designed to reduce the tenant’s share of the overall rent; (2) other funds, in the form of grants, loans or owner contributions, to reduce certain expenses or correct certain deficiencies; and (3) project reserves that can be tapped for certain improvements or to reduce expenses. Because availability for a specific property depends on many factors, advocates should explore those sources appearing most promising.

HUD Housing Programs: Tenants’ Rights (The Green Book): 4.9.4 Project-Wide Rent Increases In HUD-Owned Multifamily Housing

Several factors affect what rents are charged in HUD-owned multifamily developments. First, the “unit rent” is set by HUD (whether as Mortgagee in Possession (MIP) or as owner), in accordance with the requirements of the development’s mortgage insurance or direct loan program that is in effect, or was in effect immediately prior to foreclosure.932 Second, more complicated rules determine how much of the unit rent is paid by the tenant.

HUD Housing Programs: Tenants’ Rights (The Green Book): 4.9.5 Project-Based Section 8: Contract Rents and Annual Rent Adjustments

Project-Based Section 8 properties have HUD-approved total unit rent levels known as “contract rents,” which are established under rules applicable at the time the original contract or renewal contract was executed. Subsequently, contract rents may be increased, usually annually, according to specific formulas, or on a budget basis, under provisions applicable to the specific subprogram involved. Contract rents reflect the maximum chargeable by the owner, with a portion paid by the tenant under the statutory formula and the remainder covered by the housing assistance payment from HUD.

HUD Housing Programs: Tenants’ Rights (The Green Book): 4.9.6 Project-Wide Rents in Unsubsidized HUD-Insured Housing

Rents at these developments are generally not below-market, although tenants may benefit from an additional rental assistance program. As a result of original program structure or deregulatory efforts in the early 1980s, most unsubsidized HUD-insured developments are no longer subject to federal rent regulation. However, advocates will occasionally represent low-income tenants of these developments that should still be subject to rent restrictions providing some level of below-market affordability.

HUD Housing Programs: Tenants’ Rights (The Green Book): 4.9.7 Other HUD-Assisted and HUD-Supported Developments: Contract Rents and Annual Rent Adjustments

Apart from Project-Based Section 8, many developments also have other forms of rental assistance that, in combination with tenant’s income-based contributions, support the total contract rent for the unit. Notable among these programs are Rent Supplement, Section 236 RAP, Section 202 or 811 Project Rental Assistance Contracts (PRAC or PAC), and Project-Based Vouchers.

HUD Housing Programs: Tenants’ Rights (The Green Book): 9.1 Introduction

Tenant organizations have long been instrumental in protecting residents’ rights, preserving affordable housing, and forwarding national and local policy.1 There are different types of tenant organizations, such as local resident groups representing individual buildings of public housing, citywide groups that focus on federal housing issues, as well as statewide and nationwide groups. Resident participation can ensure that tenants play an integral role in the management process and promote services benefiting all residents.

HUD Housing Programs: Tenants’ Rights (The Green Book): 9.2.1 Overview

In 1986, HUD published a regulation to provide for more proactive tenant participation by public housing residents.3 The regulation included a statement of HUD’s tenant participation policy.4 In 1994, HUD substantially revised the resident participation regulation in response to requests from tenant organizations and after working with an Interim Resident Advisory Committee.5 The revised regulation added a new HUD policy on partnerships betwe

HUD Housing Programs: Tenants’ Rights (The Green Book): 9.5.4 Cooperative Housing

Privately-owned subsidized housing is unique because it can be owned cooperatively, which should facilitate resident participation. Housing cooperatives place the control in the members as they are run by a board of directors elected by the cooperative membership. The board has the power to select new members for the cooperative, establish the monthly carrying charges (i.e., housing or occupancy charge) for the units, employ management, terminate members for cause, and promulgate other necessary rules and regulations. Generally, the entire membership must meet at least annually.

HUD Housing Programs: Tenants’ Rights (The Green Book): 9.5.6 Tenant Organizing Resource

The national resident-run organization for HUD-subsidized housing tenants is the National Alliance of HUD Tenants (NAHT), located in Boston, MA.178 NAHT facilitates the exchange of information among members and enables advocacy on common issues through a website, events, and periodic conference calls. Issues raised by members are brought to HUD staff, Congressional leaders, as well as to other advocates who may be confronting similar issues in their locality.

HUD Housing Programs: Tenants’ Rights (The Green Book): 9.6 Form Of Organization

The most advantageous organizational form for a tenant organization depends on the size, purpose, and functions of the group. Tenant organizations range from small social groups to activist groups organized to serve as a negotiating unit for tenants in a particular project. In addition, tenant groups can be organized to receive grant monies to operate social service programs for residents. Furthermore, the organizations can be resident management corporations or entities that contract with the PHA to perform certain management functions.

HUD Housing Programs: Tenants’ Rights (The Green Book): 3.1 Introduction

A lease defines the landlord-tenant relationship and the mutual rights and obligations of both parties. It may also establish rights and duties that exceed the minimum requirements of federal, state and local law.1 While a tenant’s lease often must be approved by the Department of Housing and Urban Development (HUD) or the relevant public housing authority (PHA), such approval does not ensure an equitable lease. Negotiation of lease terms by a strong tenant organization is the most effective means of securing fair leases for all tenants.

Unfair and Deceptive Acts and Practices: 6.5.2.1 Nature and Requirements of State Prohibitions

Even without an explicit reference to credit costs, UDAP statutes’ general prohibitions of unfairness can be used to challenge exorbitant credit charges. Many of the states that prohibit unfair practices use a definition that evaluates whether the practice offends public policy, is immoral, unethical, oppressive, or unscrupulous, and causes substantial consumer injury.178 This standard is readily applicable to exorbitantly priced credit.