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federalUnited StatesUSDA Rural Development Section 515 Rural Rental Housing Loanssubsidy_calculation
Rent collected above basic rent, up to note rent, is overage and must be remitted to Rural Development
rd515.subsidy_calculation.overage_remitted_to_the_agency · v1.0.0
Where a tenant's contribution exceeds basic rent, the borrower must remit to Rural Development the rent collected in excess of basic rent and up to note rent. That excess is overage: it is not project income, it is not available to the owner, and it is reported to the Agency on Form RD 3560-29. On an account carrying an interest credit agreement, overage is charged to the account as additional interest. Overage arises for a household without Rental Assistance whose income has risen far enough that thirty percent of adjusted income exceeds basic rent, and it is also imposed as a sanction where the borrower fails to file certifications on time.
A site manager sees overage as a line the tenant pays that the property never keeps. The three overage types RD tracks on Form RD 3560-29, per HB-2-3560 para. 7.17.A, are: Type 1, the occupancy surcharge paid by ineligible tenants in Plan I projects; Type 2, rents paid by tenants in a Section 8/515 project with an interest credit agreement; and Type 3, rents in a Plan II project in excess of basic rent.
- Confidence
- high
- Effective from
- 2005-01-01
- Last reviewed
- 2026-08-30
Citations
All sources verified within 1 day- Direct Multi-Family Housing Loans and Grants7 CFR 3560.203(c)
- Direct Multi-Family Housing Loans and Grants7 CFR 3560.11, definition of 'Overage'
- HB-2-3560 Multi-Family Housing Asset Management Handbook (consolidated edition)HB-2-3560 para. 7.17