PURPOSE: Final Notice of Approved Rent (Occupancy Charge) and Utility
Allowance Change (old 1930-C, Exhibit C-2)

**NOTICE TO TENANTS (MEMBERS) OF PROPOSED RENT**

**(OCCUPANCY CHARGE) AND UTILITY ALLOWANCE CHANGE**

Date: \[*insert today's date*\]

\[*Name of Borrower/Project*\]

You are hereby notified that Rural Development has reviewed the request
for a change in shelter costs for the
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_
project(s), and considered all justifications provided by project
management \[and comments provided by tenants\]. Rural Development has
approved the following rent (occupancy charge) and/or utility allowance
rates listed below. The changes for all units will become effective on
\_\_\_\_\_\_\_\_\_\_\_\_ \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_.
\[Insert effective date shown in Handbook Letter 203 (3560) or later
effective date in accordance with last paragraph of Handbook Letter 203
(3560)\]. The change is needed for the following reasons:

(Insert reasons for approval)

1\.

2\.

3\.

The approved changes are as follows:

+-----------+-----------+-----------+-----------+-----------+-----------+
| **Unit    | **Present |           | *         |           | *         |
| Size**    | Rent**    |           | *Proposed |           | *Amount** |
|           |           |           | Rent**    |           |           |
|           | **        |           |           |           | **        |
|           | Occupancy |           | **(       |           | Changed** |
|           | Charge)** |           | Occupancy |           |           |
|           |           |           | Charge)** |           |           |
+-----------+-----------+-----------+-----------+-----------+-----------+
|           | **Basic** | **Note    | **Basic** | **Note    |           |
|           |           | Rate**    |           | Rate**    |           |
+-----------+-----------+-----------+-----------+-----------+-----------+
| **Eff     |           |           |           |           |           |
| iciency** |           |           |           |           |           |
+-----------+-----------+-----------+-----------+-----------+-----------+
| **1-      |           |           |           |           |           |
| Bedroom** |           |           |           |           |           |
+-----------+-----------+-----------+-----------+-----------+-----------+
| **2-      |           |           |           |           |           |
| Bedroom** |           |           |           |           |           |
+-----------+-----------+-----------+-----------+-----------+-----------+
| **3-      |           |           |           |           |           |
| Bedroom** |           |           |           |           |           |
+-----------+-----------+-----------+-----------+-----------+-----------+
| **4-      |           |           |           |           |           |
| Bedroom** |           |           |           |           |           |
+-----------+-----------+-----------+-----------+-----------+-----------+
| **5-      |           |           |           |           |           |
| Bedroom** |           |           |           |           |           |
+-----------+-----------+-----------+-----------+-----------+-----------+

HB-2-3560

Appendix 4

The approved utility allowance changes are as follows:

  ----------------- --------------------- ------------------ --------------
  **Unit Size**     **Present Utility     **Proposed Utility **Amount
                    Allowance**           Allowance**        Changed**

  **Efficiency**                                             

  **1-Bedroom**                                              

  **2-Bedroom**                                              

  **3-Bedroom**                                              

  **4-Bedroom**                                              

  **5-Bedroom**                                              
  ----------------- --------------------- ------------------ --------------

Should you have any questions or concerns, you may contact Rural
Development. The Rural Development servicing office address is:

(Use the following required and/or optional paragraphs where
applicable).

\*You must notify the tenants (members) of Rural Development's approval
of the rent (occupancy charge) and utility allowance changes by posting
this letter in the same manner as the "NOTICE TO TENANTS (MEMBERS) OR
PROPOSED RENT (OCCUPANCY CHARGE) AND UTILITY ALLOWANCE CHANGE" (Handbook
Letter 203 (3560). This notification must be posted in a conspicuous
place and cannot be substituted for the usual written notice to each
individual tenant (member).

\*This approval does not authorize you to violate the terms of any lease
(occupancy agreement) you currently have with your tenants (members).

\*\*For those tenants (members) receiving rental assistance (RA), their
costs for rent (occupancy charge) and utilities will continue to be
based on the higher of 30 percent of their adjusted monthly income or 10
percent of gross monthly income or if the household is receiving
payments for public assistance from a public agency, the portion of such
payments which is specifically designated by that agency to meet the
household's shelter cost. If tenants are receiving Housing and Urban
Development (HUD) Section 8 subsidy assistance, their costs for rent and
utilities will be determined by the current HUD formula.

\*\*Your application for RA units on behalf of eligible tenants
(members) has been received (or is on hand). Since RA units are not
available, the approved rate and/or allowance change is subject to your
acceptance of the RA units should they become available.

\*\*This rate and utility allowance change is conditioned on the
requirement that you carry out energy conservation measures and
operating practices as determined necessary by the project energy audit.
You will be allowed \_\_\_\_\_\_\_\_ days for completion of the work.
Rural Development assistance may be available to finance any needed
improvements.

\*\*You may file an appeal regarding the rate and utility allowance
change as approved within 45 days of the date of this notice as
described in Loan Origination Handbook, Chapter 1, Attachment 1-B
(attached). A request for a hearing must be sent to the Area Supervisor,
National Appeals Staff,
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_,
postmarked no later than (30 days from date of this letter).

\*You must inform the tenants (members) of their right to request an
explanation of the rate and utility allowance change approval decision
within 45 days of the date of this notice by writing to (insert the name
and address of next higher Rural Development approval official). All
tenants (members) are required to pay the changed amount of rent
(occupancy charge) as indicated in the notice of approval.