a APPENDIX 8

WORKSHEET: CALCULATING PRO-RATED ASSISTANCE

FOR MIXED FAMILIES

WORKSHEET: CALCULATING PRORATED ASSISTANCE FOR MIXED FAMILIES

1\. Maximum Unit Rent (see calculation below) 1.\_\_\_\_

2\. TTP (calculated as if all family members 2.\_\_\_\_

were of eligible status \-- see Chapter 5 for

guidance on TTP)

3\. Maximum Household Subsidy (1) - (2) 3.\_\_\_\_\_

4\. Total number of people in the family 4.\_\_\_\_

5\. Maximum Subsidy per person (3) / (4) 5.\_\_\_\_\_

6\. Number of eligible family members 6.\_\_\_\_

7\. Pro-rated Subsidy (5) x (6) 7.\_\_\_\_\_

8\. Mixed Family\'s Rent Payment (1) - (7) 8.\_\_\_\_\_

Establishing the Maximum Rent

The maximum rent is based on the value of the 95th percentile of the

Total Tenant Payment (TTP) for each tenant in the IHA. (See Chapter 5

for a discussion of TTP). A maximum rent should be established for each

unit size. The IHA can establish the rent on a project-wide or IHA-wide

basis. There are two methods for establishing the rent.

Direct Comparison: This method is good when it is easy to collect

enough data on similar bedroom sizes \-- for example, in a single

development.

Unit Distribution: This method is better in situations where the

universe of units is harder to compare - for example, when

establishing an IHA-wide maximum rent or when there are too few

units of the same size to make a good database.

These methods are described on the following page.

\-- SAMPLE \-- Appendix 8

A-8.1

STEPS EXAMPLE: Maximum rent for two-bedroom units

in one development

Step 1: List the TTPs for all the Collect the TTPs for all two-bedroom
units in the development:

202, 0, 50, 160, 240, 150, 75, 100,

120, 130, 140, 99, 101, 75, 25,

100, 65, 110, 250, 180

Step 2: Arrange the TTPs in Arrange them like this:

numerical order.

0, 25, 50, 65, 75, 75, 99, 100,

101, 110, 110, 120, 130, 140, 150,

160, 180, 202, 240, 250.

Step 3: Figure out which TTP marks

the 95th percentile by taking the

total number of TTPs listed and 20 TTPs x 0.95 = 18

multiplying by 95 percent

Step 4: Count down the list of Count down the list to the 18th

TTP:

TTPs to the 95th percentile.

0, 25, 50, 65, 75, 75, 99, 100,

101, 110, 110, 120, 130, 140, 150,

160, 180, 202, 240, 250.

The 18th TTP is 202.

Step 5: The TTP at the 95th per- The maximum rent for the two-bedroom

centile is the maximum rent. unit in this development is \$202.

METHOD #2 UNIT DISTRIBUTION (TWO BEDROOM)

STEPS EXAMPLE: An IHA with 100 units of different

sizes

Step 1: Follow steps 1 through Collect all 100 TTPs, arrange them

in

five in method one, collecting order and pick the 95th percentile

the TTPs on all units (not (the 95th unit). Let\'s say that turns

just two-bedrooms), to find an out to be \$195.

overall 95th percentile TTP. The overall 95th percentile TTP is \$195.

Step 2: Multiply the 95th Multiply \$195 by the adjustment

factor

percentile TTP by an adjustment for each bedroom size.

factor for each bedroom size:

Size Factor

0 0.70 0 bedroom: \$195 x 0.70 = \$137

1 0.85 1 bedroom: \$195 x 0.80 = \$166

2 1.00 2 bedroom: \$195 x 1.00 = \$195

3 1.25 3 bedroom: \$195 x 1.25 = \$244

4 1.40 4 bedroom: \$195 x 1.40 = \$273

5 1.61 5 bedroom: \$195 x 1.61 = \$314

6 1.82 6 bedroom: \$195 x 1.82 = \$355

\-- SAMPLE \-- Appendix 8

A-8.2