Rent Increase

On-line Rent Increases Submission Procedures

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

	The window for submitting a rent increase is October 1^st – December 31^st. Go to amrs.mhdc.com to enter the property’s rent increase request on-line. MHDC will not accept mailed rent increase requests unless your property has 12 units or less.
	Important Note - Rent increase requests for all elderly designated properties will be capped at the Social Security COLA adjustment instead of the allowed 7% maximum. MHDC will use the 2008 COLA for all 2009 Rent Increases. Please visit www.ssa.gov/cola/automatic-cola.htm for previous year COLA adjustments. The 2008 Social Security COLA is 2%.
	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 31, 2008. 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.
	User name and password is the same user name and password used to access the budget and financial statement systems.
	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.

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 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:

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 off previous MHDC approved rent schedules or the property’s Land Use Restriction and Regulatory Agreement. If a property has tenants with Section 8 vouchers MHDC must have 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.
Submitted Annual Financial Statement
Submitted Budget

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

Note: A current rent roll must contain each unit, bedroom type, rent amount, and rent type.
Three (3) comparable rents in the area for each bedroom type

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

Note: Utility allowance information must be current. Utility allowances should not be older than 1/1/2008. If a current utility allowance is not available please an explanation will be required.
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.