Rent Increases

The window for submitting rent increase requests is open from October 1 to December 31.  Family designated developments have the option to request either a non-budget based rent increase subject to compliance testing or a budget based rent increase which would allow for a rent increase up to a maximum amount as determined by MHDC.  Senior designated developments are capped at the greater of 2% or the prior year Social Security Cost of Living Adjustment (COLA).  Developments electing Average-Income Set-Aside, the income and rent levels will be assigned from the beginning based on the market study submitted at the time of application.  MHDC will input the income levels into AMRS so developments can track the range for every potential income and rent level. All MHDC-approved rent increases are issued on Form Schedule II.

Rent Increase Requirements and Procedures

To be considered for a rent increase, the following items must be submitted:

• Annual Financial Statement and Budget are submitted by the due date in the Asset Management Reporting System (AMRS).
• Current Utility Allowances have been submitted in AMRS.
• Current Rent Roll must be uploaded in AMRS. The current rent roll must contain each unit, bedroom type, rent amount, rent type, and the lease move- in/renewal effective dates for each resident.
• A signed copy of MHDC’s Exhibit A-21 Notice to Residents of Management’s Intention to Submit a Rent Increase Request to MHDC for Approval must be uploaded with the rent increase request. Please note: Owner/Management is required to deliver an Exhibit A-21 to each resident and post it for public viewing prior to submitting the rent increase request to MHDC. The language in this notice may not be altered or substituted.

MHDC Compliance Testing

When a rent increase is received by MHDC, the request is reviewed and tested for the following:

• The development must be in compliance with all MHDC policies and procedures.
• AOD reporting must be in compliance.
• A minimum of 12 months of occupancy data must be reported. Occupancy submission must be current, and average occupancy must not be below 90% over a rolling 12 month period.
• The most recent inspection must be closed in compliance.
• The development must demonstrate that they are charging the current approved rents based on the most recent approved Schedule II to at least 90% of the residents.
• The proposed rents may not exceed maximum Section 42 rent limits.
• If applicable, the development’s mortgage must be current.

Family developments submitting a non-budget based rent increase and senior designated developments will be issued a Schedule II reflecting approved rents as long as the development can demonstrate that they are in compliance with the above list.  Family developments submitting a budget based rent increase will be issued a Schedule II after the development’s budget has been reviewed, and the proposed budget justifies that a rent increase is needed. Rent increases MUST NOT be implemented before the effective date or before a signed Schedule II has been provided to the owner or the managing agent. In the event the owner/management has not complied with the list above, the Schedule II will be placed on hold until the non-compliance is corrected.

• Budget Based Rent Increase Requirements and Procedures - Family Properties
• Rent Increase Requirements and Procedures - Senior Properties
• FAQ Rent Increases