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QUESTION: For organizations who rent their own properties to their waiver clients, how do you determine and set each client’s rent? Almost all the properties we own (other than group homes) where some of our clients reside have rent/funding restrictions. As a result, rent is set based on HUD formulae that says what max allowable rent is for certain size apartments and certain income levels. For the few homes we have without those restrictions we use the HUD formulae as guidelines. We as an organization do not own the houses ourselves, however hold the Master lease, rent is set by the Property Manager. If I were this Provider I would get a hold of a realtor in the area that is familiar with renting out houses and what is the typical charge for a house in that particular neighborhood. This should give them a realistic amount to charge. Several of our properties are IHCDA funded low income housing and are required to use the Federal Program rent/income limits provided by IHCDA. We have 3 other homes that we rent to individuals served and use those same rent limits for those homes even though we are not required to do so. The rent limits are updated annually by IHCDA and provided through their RED notices (Google search IHCDA red notices and you should be able to find them). They are usually released early-mid summer each year. The limits are set by county. For our non IHCDA properties, we use the 60% AMI amount based on household size and property size (1 bedroom, 2 bedroom, etc.). The IHCDA properties are more complicated than this and utilize the other AMI percentages. There is also another set of rent limits for tax income (RHTC) properties released earlier in the year by IHCDA. These are different from the limits we are required to use. This information is a compilation of suggestions, ideas, and opinions shared by INARF Members in response to the featured question. This information should not be considered official interpretation or guidance of State or Federal Policy. Additionally, statements within this document do not necessarily reflect an official position or opinion of INARF.
QUESTION: For organizations who rent their own properties to their waiver clients, how do you determine and set each client’s rent?
Almost all the properties we own (other than group homes) where some of our clients reside have rent/funding restrictions. As a result, rent is set based on HUD formulae that says what max allowable rent is for certain size apartments and certain income levels. For the few homes we have without those restrictions we use the HUD formulae as guidelines.
We as an organization do not own the houses ourselves, however hold the Master lease, rent is set by the Property Manager. If I were this Provider I would get a hold of a realtor in the area that is familiar with renting out houses and what is the typical charge for a house in that particular neighborhood. This should give them a realistic amount to charge.
Several of our properties are IHCDA funded low income housing and are required to use the Federal Program rent/income limits provided by IHCDA. We have 3 other homes that we rent to individuals served and use those same rent limits for those homes even though we are not required to do so.
The rent limits are updated annually by IHCDA and provided through their RED notices (Google search IHCDA red notices and you should be able to find them). They are usually released early-mid summer each year.
The limits are set by county. For our non IHCDA properties, we use the 60% AMI amount based on household size and property size (1 bedroom, 2 bedroom, etc.). The IHCDA properties are more complicated than this and utilize the other AMI percentages.
There is also another set of rent limits for tax income (RHTC) properties released earlier in the year by IHCDA. These are different from the limits we are required to use.
This information is a compilation of suggestions, ideas, and opinions shared by INARF Members in response to the featured question. This information should not be considered official interpretation or guidance of State or Federal Policy. Additionally, statements within this document do not necessarily reflect an official position or opinion of INARF.