Laws and Regs

24CFR245.310.txt

Budget-Based Rent Increase

Laws and Regs

OMB: 2502-0324

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[Code of Federal Regulations]
[Title 24, Volume 2]
[Revised as of April 1, 2003]
From the U.S. Government Printing Office via GPO Access
[CITE: 24CFR245.310]

[Page 380-381]

                 TITLE 24--HOUSING AND URBAN DEVELOPMENT

 CHAPTER II--OFFICE OF ASSISTANT SECRETARY FOR HOUSING--FEDERAL HOUSING
        COMMISSIONER, DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

PART 245--TENANT PARTICIPATION IN MULTIFAMILY HOUSING PROJECTS--Table of Contents

Subpart D--Procedures for Requesting Approval of an Increase in Maximum
                            Permissible Rents

Sec. 245.310  Notice to tenants.

    (a) At least 30 days before submitting a request to HUD for approval
of an increase in maximum permissible rents, the mortgagor must notify
the tenants of the proposed rent increase. Copies of the notice must be
served on the tenants as provided in Sec. 245.15. The notice must
contain the following information in the following format or an
equivalent format:

 Notice to Tenants of Intention To Submit a Request to HUD for Approval
               of an Increase in Maximum Permissible Rents

________________________________________________________________________
Date of Notice

    Take notice that on [date] we plan to submit a request for approval
of an increase in the maximum permissible rents for [name of apartment
complex] to the United States Department of Housing and Urban
Development (HUD). The proposed increase is needed for the following
reasons:
    1.
    2.
    3.
    The rent increases for which we have requested approval are:

----------------------------------------------------------------------------------------------------------------
                                       Present rent \1\         Proposed increase \1\       Proposed rent \1\
            Bedrooms             -------------------------------------------------------------------------------
                                      Basic        Market        Basic        Market       Basic        Market
----------------------------------------------------------------------------------------------------------------
5...............................  $...........  $...........  $..........  $..........  ...........  $
0...............................  ............  ............  ...........  ...........  ...........  ...........
1...............................  ............  ............  ...........  ...........  ...........  ...........
2...............................  ............  ............  ...........  ...........  ...........  ...........
3...............................  ............  ............  ...........  ...........  ...........  ...........
4...............................  ............  ............  ...........  ...........  ...........  ...........
----------------------------------------------------------------------------------------------------------------
\1\ Separate columns for basic and market rent should be used only for projects assisted under sec. 236 of the
  National Housing Act. In addition, in projects with more than 1 type of apartment having the same number of
  bedroom but different rents, each type should be listed separately.

    A copy of the materials that we are submitting to HUD in support of
our request will be available during normal business hours at [address]
for a period of 30 days from the date of service of this notice for
inspection and copying by tenants of [name of apartment complex] and, if
the tenants wish, by legal or other representatives acting for them
individually or as a group.
    During a period of 30 days from the date of service of this notice,
tenants of [name of apartment complex] may submit written comments on
the proposed rent increase to us at [address]. Tenant representatives
may assist tenants in preparing those comments. (If, at HUD's request or
otherwise , we make any material change during the comment period in the
materials available for inspection and copying, we will notify the
tenants of the change or changes, and the tenants will have a period of
15 days from the date of service of this additional notice (or the
remainder of any applicable comment period, if longer) in which to
inspect and copy the materials as changed and to submit comments on the
proposed rent increase). These

[[Page 381]]

comments will be transmitted to HUD, along with our evaluation of them
and our request for the increase. You may also send a copy of your
comments directly to HUD at the following address: United States
Department of Housing and Urban Development [address of local HUD field
office with jurisdiction over rent increases for the project],
Attention: Director, Housing Management Division, Re: Project No. [Name
of Apartment Complex].
    HUD will approve, adjust upward or downward, or disapprove the
proposed rent increase upon reviewing the request and comments. When HUD
advises us in writing of its decision on our request, you will be
notified. If the request is approved, any allowable increase will be put
into effect only after a period of at least 30 days from the date you
are served with that notice and in accordance with the terms of existing
leases.

________________________________________________________________________
[Name of mortgagor or managing agent]

    (b) The mortgagor must comply with all representations made in the
notice. The materials to be made available to tenants for inspection and
copying are those specified in Sec. 245.315.
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