A RAD PBRA family whose TTP reaches gross rent is admitted and pays a capped rent that yields to any tighter LIHTC or HOME rent limit

rad_pbra.tenant_payment.zero_hap_rent_cap · v1.0.0

Ordinary PBRA rules bar admission of a family whose total tenant payment equals or exceeds gross rent and require the owner to terminate assistance when a resident's TTP reaches that level. Because RAD contract rents are derived from former public housing subsidy, HUD establishes the alternative requirement that a family whose TTP equals or exceeds gross rent but who would otherwise qualify for assistance in the unit shall be admitted and allowed to occupy it, and that the unit shall be placed on and remain under the HAP contract. For residents living in the Converting Project before conversion and for all new admissions during the initial contract term, while the family's TTP is at or above gross rent the family pays the lower of its TTP less the utility allowance, subject to any required phase-in, or the Zero-HAP Rent Cap. The Zero-HAP Rent Cap is the lower of the applicable fair market rent less the utility allowance, or, where the units carry more restrictive rent-setting requirements under another federal, state or local programme such as LIHTC or HOME, the rent to owner set to comply with those requirements. HUD waives 24 CFR 880.603(c)(3) and sections 3-6 F.4, 8-5 C and 8-6 A.1 of Handbook 4350.3 REV-1 to do this. The family keeps every right under the Model Lease including the right to occupy the unit, and remains subject to reexamination of family income and composition under 24 CFR part 5 so that the cap can be determined. Rent collected at the cap is project funds and must be used for project purposes.

Confidence

high

Effective from

2019-09-05

Last reviewed

2026-08-31