> Rent
Increases
MHDC sets rents for projects involved in the MHDC Fund Balance, Low Income Housing Tax Credit Compliance, and HOME programs. Requests should be as complete as possible to expedite processing. The window for submitting a rent increase is October 1st – December 31st.
All rent increase requests are required to be submitted on-line thru MHDC’s on-line system. Please log on to https://amrs.mhdc.com to submit your rent increase. The user name and password is the same user name and password used to access the budget and financial statement modules. All rent increases submitted outside this window will not be processed. The effective date will still need to be at least one year from the effective date of your last rent increase submission. MHDC will not accept mailed rent increase requests unless your property has 12 units or less.
New Rent Increase Procedures for 2012
 |
Owner/Management is required to post for public viewing MHDC
Exhibit A-21:
Notice to Residents of Management’s Intention to Submit a Rent
Increase Request to MHDC for Approval
(posted here)
prior to submitting the rent increase request to MHDC for approval.
A copy of the notice to residents must be included with the
submitted rent increase request. This notice may not be substituted
with alternative language. Note: the requirement is in
addition to providing notice to each resident.
Owner/Management may send customized
letters to each resident or use the Exhibit A-21 form. The
language on the customized resident letter must be consistent with
the information on Exhibit A -21.
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Leases
that allow for a mid-lease rent increase must include MHDC
Exhibit X: Mid-Lease Rent Increase Lease Addendum (posted
here) for the resident and management to sign. Any mid-lease
rent increase implemented without this addendum will be required to
be refunded and the increase will be considered null and void. |
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Senior
Properties – In years of back-to-back 0% COLA adjustments, the
owner will be allowed to increase rents by a maximum of 2% in the
2nd year. |
Rent Increase Procedures for Senior Properties
| Rent increase requests for
senior designated properties (i.e., properties for residents age 55 and
older) are capped at the lower of the prior year Social Security Cost Of
Living Adjustment (COLA) or the allowed 7% maximum. However, in years of
back-to-back 0% COLA adjustments, the owner will be allowed to increase
rents by a maximum of 2% in the 2nd year. MHDC will use the 2011 COLA
for all rent increases approved with an effective date in 2012. Please visit
www.ssa.gov/cola/automatic-cola.htm
for previous year COLA adjustments. |
| 2010 COLA – 0%; No 2011 Rent Increase allowed
senior properties. 2011 COLA – 0%; Owner may increase rents by a maximum of 2% for 2012 |
Documents
|
For Tax Credit Projects with MHDC or HOME Funds |
| For Tax Credit ONLY Projects (no MHDC or HOME funds) |
Management
Resources:
|
Exhibit A-21:
Notice to Residents of Management’s Intention to Submit a
Rent Increase Request to MHDC for Approval (posted
here) |
|
Exhibit X: Mid-Lease Rent Increase Lease Addendum (posted here) |
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Frequently Asked Questions (FAQ’s) about Rent Increases update 10-1-2011 |
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