Example – Section 8 Prorated Rent (with utility allowance)

Family B has five persons. Three are citizens, and two do not have eligible immigration status. The contract rent for the unit is $500. The utility allowance is $30. The family’s TTP is $100.

HUD Occupancy Handbook Chapter 3: Eligibility for Assistance and Occupancy

6/07

3-35

Section 1: Program Eligibility

4350.3 REV-1

2. Rent Supplement. The Rent Supplement paid on the family’s behalf is the amount they would otherwise be entitled to, multiplied by the fraction for which the numerator is the number of eligible people in the family and the denominator is the total number of people in the family.

3. Section 236. For Section 236 properties, the fraction is the number of ineligible persons over the total number in the family. The proration increases the rent the family is otherwise paying by an amount equal to the difference between the market rent and the rent the family would otherwise pay, multiplied by the fraction.

4. Section 236 with RAP, Rent Supplement, or Section 8 LMSA. If a property receives a combination of Section 236 with RAP, Rent Supplement, or Section 8 LMSA assistance, the owner must prorate both the Section 236 portion of the assistance and the RAP, Rent Supplement, or Section 8 assistance payment. The owner determines the new prorated rent by calculating the difference between market rent and basic rent multiplied by the fraction of ineligible family members. To determine the family’s rent increase, the owner adds this total to the assistance payment multiplied by the same fraction of ineligible family.