rent-reasonableness-faq

NYC Housing Authority


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Guides and FAQs

Housing Quality Standards

Lease Renewal Process

Owner Incentive Rental and Transfer Program

Guides and FAQs


Rent Reasonableness Frequently Asked Questions (FAQs)

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What is rent reasonableness?

The U. S. Department of Housing and Urban Development (HUD) requires that NYCHA confirm that the rent being paid is reasonable, meaning it is not more than rents being charged for similar units in the same area that do not receive subsidy. NYCHA will perform a rent reasonableness analysis before it can approve a new rental and before it can approve any rent increase.

Who calculates rent reasonableness?

NYCHA determines if the rent is reasonable when processing a new rental or when there is a request to increase the contract rent amount. NYCHA uses an outside vendor, AffordableHousing.com, for all rent reasonableness evaluations. AffordableHousing.com looks at units near the unit you are trying to rent and units within a ¼ mile radius to find the most similar units without subsidy to yours.

What factors does NYCHA look at when calculating rent reasonableness?

The rent reasonableness evaluation will compare the unit in question to units that are ¼ mile away that have similar unit size and type, age, property amenities, services, and utilities (specified in the lease). While AffordableHousing.com shares some of this information when they give the list of similar units, NYCHA staff will use the results to make the final determination on whether the rent is reasonable.

What happens once rent reasonableness is calculated?

Rents charged for similar units without subsidy (known as rent comparables) are compared to the proposed contract rent. This allows NYCHA to determine what the reasonable rent range would be for the unit. For the lease renewal process, if the proposed contract rent is within the reasonable rent range, then NYCHA will issue the owner a letter of approval. If the proposed contract rent is more than the reasonable rent range, NYCHA will notify the owner of their options. This includes modifying the proposed contract rent so it is within the reasonable rent range. The owner can also upload comparable units to AffordableHousing.com and ask NYCHA to re-run the rent reasonableness analysis.

NYCHA will not approve a newly proposed rent or rent increase if the contract rent is more than the reasonable rent range.

NYCHA calculates rent reasonableness

If the reasonable rent is greater than or equal to the requested rent amount...

If the reasonable rent is less than the requested rent amount...

NYCHA approves the requested rent amount

NYCHA gives the owner options to upload more rates or challenge

When is a rent reasonableness evaluation NOT necessary?

If the rent is staying the same (only pertains to lease renewals)

If the rent has decreased (only pertains to lease renewals)

When does the rent reasonableness process occur?

After the owner submits a lease renewal request and supporting documents, or a rental/transfer package, NYCHA will process and review the request and perform a rent reasonableness evaluation (see above). In order for your lease to be renewed, or an approval given for a new unit, the rent must be deemed reasonable.

Submit Lease Renewal or Lease-up request

NYCHA reviews Lease Renewal or Lease-up request, as wel as supporting documents

NYCHA approves or rejects request

For Owners: How can an Owner add their rental units and new rental comparables?

Owners can add their units and new rental comparables through our partner, AffordableHousing.com. Any units and/or comparables submitted will be validated by AffordableHousing.com. If you have any questions, please contact our partner, AffordableHousing.com at 866-466-7328:

Step by Step Instructions on How to Submit an Owner Rent Comparable on AffordableHousing.com

For Owners: How often can I increase the rent?

Owners may apply for an increase in the contract rent once a year. Requests must be submitted to NYCHA 60 days in advance of the effective date of the increase. The Owner’s proposed rent must be confirmed to be in accordance with any federal, state, or local housing laws and regulations that apply to that building and/or apartment. To demonstrate this, owners are encouraged to supply supporting documentation to AffordableHousing.com. Owners should complete and return a Lease Renewal form. The form can be found here or on NYCHA’s website.

For Owners: How can I support a request for a rent increase?

If NYCHA determines that the contract rent is unreasonable, you will be given an opportunity to upload comparables online directly to www.affordablehousing.com OR accept the rent that is found reasonable, which will require an amended lease with the tenant’s initials. You must advise NYCHA of the option you will choose by emailing LRInfo@nycha.nyc.gov. If no response is received within 30 days, NYCHA will cancel the original request and a resubmission is required through NYCHA’s Owner Extranet.

Please note that the submission of new rent comparables does not guarantee that NYCHA will find the contract rent reasonable. AffordableHousing.com determines rent reasonableness using the most comparable units to the contract unit. If you choose to submit rent comparables, NYCHA will conduct another rent reasonableness evaluation and will notify you of the outcome.