Note rent, basic rent and any HUD contract or LIHTC rents must be established and approved by Rural Development

rd515.rent_limit.rent_tiers_established_and_agency_approved · v1.0.0

The borrower must establish, as applicable, note rent, basic rent, HUD contract rents and low-income housing tax credit rents for each rental unit, based on the operating, management and maintenance expenses and other costs of the housing project including the loan payment due to the Agency. Every rent and utility allowance the borrower sets is subject to Agency approval. Where the borrower receives LIHTCs it may set rents in accordance with LIHTC requirements, but it remains obliged to ensure the approved budget - including the Agency loan payment - is fully funded, and it must not use housing project funds to make up the gap between the rent RD requires and the maximum rent section 42 allows.

Confidence

high

Effective from

2005-01-01

Last reviewed

2026-08-30