HUD HCV Guidebook § 2.2

Minimum rent is the amount the PHA must3 charge a family, which is no less than the minimum
monthly rent established by the PHA except in the case of financial hardship exemptions as
described below.

3
    24 CFR 5.630(a)

PHAs are required4 to adopt a minimum rent which may be set anywhere from $0 to $50. The PHA’s
minimum rent is a minimum TTP and becomes a part of the TTP formula as shown in examples 1-3
above.
Exemptions from the Minimum Rent Requirement
If a PHA adopts a minimum rent greater than $0, the PHA must5 adopt hardship exemption policies
in their administrative plans. Families may not request a hardship exemption if the family is able to
pay an amount greater than or equal to the PHA’s minimum rent based on the PHA’s calculation of
TTP. Financial hardship includes circumstances in which families:
     • Have lost eligibility or are awaiting an eligibility determination for a federal, state, or local
         assistance program, including a family that has a noncitizen household member lawfully
         admitted for permanent residence who would be entitled to public benefits but for Title IV of
         the Personal Responsibility and Work Opportunity Act of 1996, 8 U.S.C. §1601 et seq.;
     • Would be evicted as a result of imposing the minimum rent requirement;
     • Experience income decreases because of changed circumstances, including the loss of
         employment;
     • Have a death in the family;
     • Require a reasonable accommodation related to a family member’s disability; or
     • Have other circumstances as determined by the PHA or HUD, which must6 be defined in the
         administrative plan.

If a family requests a hardship exemption, the PHA must7 suspend the minimum rent requirement
and adjust the HAP accordingly, effective on the first of the month following the family’s request for
the hardship exemption, continuing until the PHA determines whether there is a qualifying financial
hardship and whether the hardship is temporary or long term. The financial hardship exemption only
applies to payment of the minimum rent8 to calculate the total tenant payment9. The TTP is still
calculated, excluding the minimum rent, and the family pays the higher of 30% of monthly adjusted
income, 10% of monthly income, and the welfare rent, as applicable, during the term of the
suspended minimum rent. Example 4 shows a sample calculation where the minimum rent has been
suspended due to a hardship exemption but the family is still required to pay the $40 TTP.

Example 4: Calculating Total Tenant Payment – Minimum Rent Suspension
         30% of monthly adjusted income            $134 x .30 = $40
         10% of monthly income                     $174 x .10 = $17
         Welfare rent (in as-is states)            $N/A
         PHA minimum rent                          $50
         Total Tenant Payment (TTP)                $40
              The tenant will never pay less than the TTP regardless of the unit selected

4 24 CFR 5.630
5
  24 CFR 5.630(b)(1)
6
   24 CFR 5.630(b)(1)
7
  24 CFR 5.630(b)(2)(ii)(a)
8
  24 CFR 5.628 and 5.630
9
  24 CFR 5.528

The PHA may request documentation to determine whether a qualifying hardship exists and must10
determine promptly if the hardship is temporary or long term. The PHA must11 define temporary and
long-term hardships in its administrative plan.

Sometimes a family requests a hardship exemption (for example, due to loss of a job) and it is not
possible to predict whether the hardship will be temporary or long term. It may be necessary to
approve a temporary exemption and re-determine the family’s status at the end of the exemption
term.

If the PHA determines there is no qualifying hardship, the minimum rent is reinstated retroactively to
the date of the suspension. The family must12 reimburse the PHA for the difference in charges
during the suspension on terms and conditions established by the PHA.

If the PHA determines the qualifying hardship is temporary, the PHA suspends the minimum rent for
a period of 90 days from the beginning of the month following the date of the family’s request. At
the end of the 90-day period, the PHA must13 reinstate the minimum rent retroactively to the date of
suspension. The PHA must14 offer the family a reasonable repayment agreement, as determined by
the PHA to cover the minimum rent charges accumulated during the suspension period.

If the PHA determines the qualifying hardship is long term, the PHA must15 exempt the family from
the minimum rent requirements from the beginning of the month following the date of the family’s
request. The exemption continues until the hardship no longer exists. The family is not required16 to
repay the difference between the TTP and the minimum rent to the PHA once the hardship is over.

Denial of a long-term hardship constitutes an adverse action and is subject to the PHA’s informal
hearing process.

When a family is selected to receive a voucher, the PHA must17 give the family a packet that includes
the PHA’s policy on hardship exemptions. The PHA must18 notify families of the right to request a
minimum rent hardship exemption. Such notification must19 advise families that hardship
exemptions are subject to the informal hearing process.