Office of Planning, Environment, & Realty (HEP)

# Presentations of Uniform Act Final Rule Implementation

## Let's See How it Works

Please refer to example entitled:

Rental Replacement Housing Calculations for Low Income Tenants

Notes:

### Explanation/Example

SUBPART E Reference § 24.402(b)(2)(ii)

Rental Replacement Housing Calculations for Low Income Tenants

1. Non-low income; rent exceeds 30% of income

Sam High has a gross income of \$6,000 per month, and is not considered low income per the HUD tables. His monthly rent and utilities is \$3,000. If displaced, his rental subsidy is calculated as:

Available Comparable: \$3,100, includes rent and utilities

\$3,100 - \$3,000 = \$100; \$100 X 42 = \$4,200

(Under the old rule the calculation would be as follows: 30% gross income is \$1,800 \$3,100 - \$1,800 = \$1,300 X 42 = \$54,600)

2. Low income; rent exceeds 30% of income

Jill Low has a gross income of \$1,000 per month, and is considered low income based on the HUD Income Limits for your county. Her monthly rent and utilities is \$400. If displaced, her rental subsidy is calculated as:

Available Comparable: \$625, includes rent and utilities

30% of monthly income is \$300; since this is lower than her actual rent, it is the basis of the rental subsidy calculation. Thus, \$625 - \$300 = \$325; \$325 X 42 = \$13, 650.

3. Low income; rent is less than 30% of income

Bob Below has a gross income of \$1,500 per month and is considered low income based on the HUD Income Limits for your county. His monthly rent and utilities are \$400. If displaced, his rental subsidy is calculated as:

Available Comparable: \$500, includes rent and utilities

30% of monthly income is \$450; since this is more than he is paying in rent and utilities, the actual rent and utilities is the basis of the rental subsidy calculation. Thus, \$500 - \$400 = \$100; \$100 X 42 = \$4,200.

HUD Annual Survey of Income Limits for Public Housing and Housing and Section 8 Program for "your" City and State (hypothetical).

Current Number of Persons Per Household
Family Size 1 2 3 4 5 6 7
Your City-State \$20,700 \$33,400 \$44,100 \$54,600 \$65,900 \$77,800 \$90,900
Updated: 04/02/2013
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