RAD PBRA rents adjust only by OCAF and are bounded by a Maximum Rent of the higher of 140 percent of FMR or RCS-demonstrated market rent
rad_pbra.rent_limit.ocaf_adjustment_maximum_rent · v1.0.0
Contract rents at a RAD PBRA Covered Project are adjusted only by HUD's Operating Cost Adjustment Factor at each anniversary of the HAP contract, subject to the availability of appropriations and to the Maximum Rent. For public housing conversions the OCAF excludes the portion of the contract rent committed to debt service. The Maximum Rent is the higher of 140 percent of the fair market rent less utility allowances, or market rents demonstrated by a Rent Comparability Study the Project Owner procures and pays for. Where an RCS has been used to establish initial rents or to justify an OCAF-adjusted rent above 140 percent of FMR, the RCS remains valid for five years: the Maximum Rent does not apply for the next four annual adjustments and rents move only by OCAF during that period.
- Confidence
- high
- Effective from
- 2019-09-05
- Last reviewed
- 2026-08-31
Evidence required
- Housing Assistance Payments contract(exactly_one)
- Rent roll(at_least_one)
- Rental market study establishing fair market rent(conditional)
Citations
All sources verified within 1 day- Rental Assistance Demonstration - Final Implementation, Revision 4, as amended by Supplemental Notices 4B and 4C (master version)Section 1.7.A.6
- Rental Assistance Demonstration - Final Implementation, Revision 4, as amended by Supplemental Notices 4B and 4C (master version)Section 1.7.A.6
- Rental Assistance Demonstration - Final Implementation, Revision 4, as amended by Supplemental Notices 4B and 4C (master version)Section 1.7.A.6
- Rental Assistance Demonstration - Final Implementation, Revision 4, as amended by Supplemental Notices 4B and 4C (master version)Section 1.7.A.6
- Rental Assistance Demonstration - Final Implementation, Revision 4, as amended by Supplemental Notices 4B and 4C (master version)Section 1.7.A.6 n.48