When a tenant is determined to be over income at time of re-certification, is the rent on that unit still restricted?
No. If a tenant exceeds 140% of the current Low Income limit on re-certification, the tenant is reported as ” Over Income” and the rent may be adjusted to the market rent for unrestricted units (subject to state/local laws and the terms of the lease). Owners may not displace tenants on the grounds that they are no longer income eligible. Next Available Unit (NAU) rules must be followed, and the QU may be reported as Over Income until the Next Available Unit becomes available and committed to a qualifying tenant. Some early versions of the LURA contain contradictory language requiring owners to maintain the restricted rent until the QU was replaced with the NAU, but adjustments to the unrestricted rent on determination of Over Income status will be permitted on all AHP properties. Owners/managers of AHP properties with Tax Credits should note that this provision differs from Tax Credit requirements, so Tax Credit rules (as the more restrictive rule) should be followed.
Related Questions
- If a change in household status or household income occurs between annual re-certification, is the tenant required to advise the manager? Is the manager required to monitor these changes?
- What can a landlord do if a tenant doesn pay their rent on time?
- What happens when the tenant doesnt pay rent on time?
