Rent Increases

The window for submitting rent increase requests is open from October 1st to December 31st.  Properties submitting a rent increase request have the option to request either a basic/automatic rent increase subject to compliance testing or a budget based rent increase which would allow for a rent increase up to a maximum as determined by MHDC. 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 basic/automatic rent increase, the following requirements must be met:

  • Annual Financial Statement and Budget are submitted by the due date in
  • Current Utility Allowances have been submitted in
  • Current Rent Roll must be uploaded in 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. This notice may not be altered with substitute with alternative language.

 

MHDC Compliance Testing

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

  • The property must be in compliance with all MHDC policies and
  • AOD reporting must be in
  • 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
  • The property 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
  • If applicable, the property’s mortgage must be

 

A Schedule II reflecting approved rents will be issued as long as the property can demonstrate that they are in compliance with the above list. Rents 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

Rent Increase Requirements and Procedures - Senior Properties

FAQ Rent Increases