Where CoC funds pay rent under the leasing activity, rent on a whole structure is capped by comparability alone, while rent on an individual unit is also capped at the FMR

coc.rent_limit.leased_structures_at_comparable_rents_and_leased_units_capped_at_fmr · v1.0.0

The leasing activity and the rental assistance activity are limited differently, and the difference is the FMR. WHERE GRANT FUNDS PAY RENT FOR ALL OR PART OF A STRUCTURE, the rent paid must be reasonable in relation to rents being charged in the area for COMPARABLE SPACE, and may not exceed rents currently being charged BY THE SAME OWNER for comparable unassisted space. There is no FMR ceiling on that case. WHERE GRANT FUNDS PAY RENT FOR INDIVIDUAL HOUSING UNITS, the rent must be reasonable in relation to rents charged for comparable units taking into account location, size, type, quality, amenities, facilities and management services, may not exceed rents currently charged for comparable units, AND MAY NOT EXCEED HUD-DETERMINED FAIR MARKET RENTS. Utilities included in the rent by the landlord may be paid from leasing funds; utilities not provided by the landlord are an operating cost, or a supportive service cost where the structure is a supportive service facility. Security deposits may not exceed 2 months of actual rent, and an advance payment of the last month's rent may be made in addition to the deposit and the first month's rent. Leasing funds may not be used to lease units or structures owned by the recipient, the subrecipient, their parent or any related organization unless HUD authorises an exception for good cause.

Confidence

high

Effective from

2012-08-30

Consequence model

agency finding with cure

Last reviewed

2026-08-31