HUD HCV Guidebook § 8.2

As a result of the Housing Opportunities and Modernization Act of 2016 (HOTMA), the PHA must50 revise the
payment standards for manufactured home space rental assistance, effective April 18, 2017.

The payment standard amount used for a unit assisted under the manufactured home space rental must be
the same payment standard amount used for regular rental units under the PHA’s HCV program.

As well, separate FMRs for manufactured home space rentals are no longer applicable. Because the family’s
housing costs subsidized by the HCV program now include the family’s monthly payments to amortize the
purchase of the home, the rationale for establishing a separate FMR (and by extension a reduced payment
standard) no longer exists.

The program regulation at 24 CFR § 982.503(a)(3) that provides the PHA voucher payment standard schedule
shall establish a “single” payment standard amount for each unit size covers the manufactured home space
rental special housing type as well as all other rental units under the PHA HCV program.

The monthly HAP for a manufactured home space rental is the lower of:
   • The PHA payment standard minus the family’s total tenant payment; or
   • The rent of the manufactured home space (including other eligible housing expenses) minus the family
      total tenant payment.

The space rent is the sum of the rent to the owner for         Can a PHA Approve an Exception Payment
the manufactured home space, any charges for                   Standard for a Lot Rent for a Manufactured
maintenance and management provided by the owner,              Home?
the utility allowance for tenant-paid utilities and            Yes, a PHA may approve an exception payment
monthly payments made by the family to amortize the            standard for a lot rent for a manufactured home if
cost of purchasing the manufactured home, including            the amount falls within the basic range. Provided
any required insurance and property taxes.                     there is justification for an exception payment
By law, whenever a family moves to a new unit where            standard, and based on how much over the FMR
the rent exceeds the payment standard, the family              for lot space the exception is, an exception
must51 not pay more than 40 percent of its adjusted            payment standard can be approved by the PHA.
monthly income for rent. The 40% limit would be
applicable to the new calculation of space rent when
families are first assisted in the space (not to families that are already assisted and the PHA is revising their
subsidy calculation in accordance with PIH Notice 2017-18).

50 Housing Opportunity Through Modernization Act of 2016
51 24 CFR § 982.508