Exhibit B - Insufficient Funds - Reduction, Proration, and Suspension: Sample Calculations
August 1, 2018
Tenant's Household Income = $20,000
Tenant's Monthly Rent = $1,200
Tenant's household size = 3 (includes one minor child)
$20,100 (household income)
$100 ($100 deduction for each minor child)
$20,000
X 30%
$ 6,000
- 12
$ 500 Tenant's allocable share of monthly rent, provided that the authority shall not make any monthly payments that exceed $500
Since the maximum allowable monthly Rent Supplement by HPHA = $500, the tenant must pay the remaining rent owed.
$1,200 (Tenant's monthly rent)
- $ 500 (HPHA maximum monthly rent supplement)
$ 700 (Tenant's monthly rent obligation)
$1,200 (Tenant's monthly rent)
- $ 400 (Maximum rent supplement reduction)
$ 800 (Tenant's new allocable share of monthly rent after maximum supplement reduction)
If sufficient funds are still not available after the reduction of the maximum rent supplement described above, the HPHA will establish a proration percentage. In this example, the proration percentage used is 25%. Tenant would receive 75% of allocable rent supplement
$ 400 (Tenant's monthly rent supplement)
- $ 100 (25% proration deduction)
$ 300 (Tenant's post-proration monthly rent supplement)
$1,200 (monthly rent)
- $ 300 (Tenant's new monthly rent supplement)
$ 900 (Tenant's new allocable share of monthly rent after proration)
If sufficient funds are not available after the reduction of the maximum rent supplement described above and the HPHA determines that the proration percentage is 50% or more, the HPHA will suspend the Rent Supplement Program for one or more months.
Determined proration percentage = 55%
$ 400 (Tenant's monthly rent supplement)
- $ 220 (55% proration deduction)
$ 180 (New allocable share of monthly rent supplement)
Suspension of program. Reduction of monthly rent supplement exceeds 50% of allocable share.