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Section 3
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  Asset Management > Program Compliance Accounting

 

> Rent Increases > On-line Rent Increases Submission Procedures
 

The following information is required for all rent increase requests for properties that do not meet the TC only guidelines (i.e., MHDC funds, HOME funds, TC only requesting an increase greater than 7%).

 

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The window for submitting a rent increase is October 1st – December 31st. Go to amrs.mhdc.com to enter the property’s rent increase request on-line. MHDC will not accept mailed rent increase requests unless the property has 12 units or less.
 

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Important Note - 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 2012 COLA for all rent increases approved with an effective date in 2013. Please visit www.ssa.gov/cola/automatic-cola.htm for previous year COLA adjustments.
2012 COLA – 3.6%; Owner may increase rents by a maximum of 4% for 2013
 

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To submit during the budget process, you may budget an increase up to 7% or the Social Security COLA adjustment. The system will recognize that the amount exceeds your current MHDC approved gross potential rent amount, and will ask you if you want to submit a rent increase – yes or no. Answering yes will pull up a rent increase packet with all the fields that are needed to submit a rent increase. If you answer no, the system will warn you that no rent increase is approved and you will need to submit your rent increase on-line by December 31st. All rent increase requests will be reviewed at the same time we review the property’s budget, and will be reviewed in the order budgets are received.
 

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User name and password is the same user name and password used to access the budget and financial statement modules.
 

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The new process will not change the property’s effective date. The effective date will still need to be at least one year from the effective date of your last rent increase submission as noted on the approved Schedule II.

 

NOTE: Rents MUST NOT be implemented until the Schedule II is signed by MHDC and returned to the owner with the effective date specified. 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:


On-line Rent Increase Submission Packet must include the following information:

 

  1. Update provided Rent Grid with requested rent increase amounts for each bedroom type.

    Note: All information on the Rent Grid has been entered by MHDC. Rent Grid information is based on previous MHDC approved rent schedules or the property’s Land Use Restriction and Regulatory Agreement. If a property has residents with Section 8 vouchers MHDC must receive documentation of the currently approved S8 voucher rents if they are higher than the approved LIHTC rent. Documentation must be uploaded with the rent roll.
     
  2. Submitted Annual Financial Statement
     
  3. Submitted Budget

    Note: Annual Financial Statements and Budgets are tracked thru MHDC’s AMRS system. Properties cannot request a rent increase until these items are received.
     
  4. Current Rent Roll

    Note: A current rent roll must contain each unit, bedroom type, rent amount, rent type, and lease move-in/renewal effective dates for each resident.
     
  5. Three (3) comparable rents in the area for each bedroom type

    Note: Explanations are required if three comparable rents cannot be provided.
     
  6. Current Utility Allowance

    Note: Utility allowance information must be current. Utility allowances should not be older than 1/1/2012. If a current utility allowance is not available an explanation is required.
     
  7. Vacancy information on the property for the past 6 months

    Note: MHDC will compare entered occupancy statistics against the monthly on-line occupancy reporting statistics when evaluating the rent increase request.
     
  8. Copy of MHDC Exhibit A-21 Notice to Residents of Management’s Intention to Submit a Rent Increase Request to MHDC for Approval
     
    Note: Owner/Management is required to deliver to residents and 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 prior to submitting the rent increase request to MHDC. 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.



     

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