EDEN eNews for Property Owners & Managers

November 2023 Issue

EDEN Rent Determination Policy for Long-Term Housing Programs

EDEN recognizes the need for property owner partners to remain competitive in the rental market. EDEN also has limitations on the amount of rent that can be approved due to HUD regulations and funding availability. In addition, as an affordable housing agency, EDEN must be conscious of its role in helping to maintain reasonable and affordable rents in our community to ensure costs do not skyrocket and families with lower incomes are still able to afford safe and decent housing.

The following policy outlines how EDEN will determine initial rents as well as rent increase requests for EDEN’s long-term rental assistance programs. This policy does not apply to EDEN’s Rapid Re-Housing Program.

Rent Determination at Initial Occupancy

HUD establishes Fair Market Rents (FMR’s) for every community on an annual basis. As a recipient of HUD funding, EDEN is required to keep approved rent amounts, as much as possible, at or below the established FMR for the jurisdiction.

As a result, EDEN will do the following in determining whether a requested rent amount for an EDEN participant can be approved:

1. EDEN will first check the established FMR for the household size

2. EDEN will then run a rent reasonable analysis through Go Section 8 to verify whether the requested rent is reasonable to comparable units.

For EDEN’s Mainstream Housing Choice Voucher (HCV) Program, an affordability calculation must also be conducted before a rent amount is approved.

3. After examining both factors, EDEN will either approve the requested rent amount or inform the property owner of what EDEN is able to pay on behalf of a prospective tenant.

If the property owner is not offered the requested rent and feels it should be at a higher level, they can provide EDEN a rent roll showing they are charging the same rents at their property to non-EDEN tenants.

EDEN has the discretion to approve rent amounts up to 120% of the FMR. All of these must be reviewed by management prior to approval.

Rent Increase Requests

EDEN recognizes that a common practice in the rental market is to increase rents in order to keep up with the rising costs of maintaining a rental property.

EDEN’s rent increase policy for existing participants/tenants is as follows:

1. Property owners are permitted to request only one increase per year for each tenant housed

2. Property owner must complete the form to request an increase on EDEN’s website at least 60 days in advance of the proposed effective date.

3. EDEN will first check the established FMR for the eligible voucher size. If a household is over-housed (ex. Tenant receives a 1-bedroom voucher but is in a 2-bedroom unit), EDEN will use the 1-bedroom FMR and rent reasonable will be conducted at the 1-bedroom unit size.

4. EDEN will then run a rent reasonable analysis through Go Section 8 to verify whether the requested rent is reasonable to comparable units. Rent reasonable will be conducted at the household’s awarded voucher size.

5. EDEN will permit a rent increase only up to 10%

6. After examining these factors, EDEN will either approve the requested rent amount or inform the property owner of what it is able to pay on behalf of a prospective tenant.

If the property owner is not offered the requested rent and feel it should be at a higher level, they can provide EDEN a rent roll showing they are charging the same rents at their property to non-EDEN tenants.

EDEN management must approve any amount that is outside of these requirements.

If a property owner does not request a rent increase annually and instead requests an increase every few years, EDEN reserves the right to allow the amount approved to exceed 10% as long as all other requirements are met. These will be analyzed using the number of years it has been since a rent increase has occurred.

Rent Requests at a Similar or the Same Building

EDEN recognizes that many property owners house several EDEN tenants. Given the market fluctuations, it is possible that a higher rent amount may be approved for one tenant that will not meet the FMR and rent reasonable analysis for another tenant who subsequently moves into another unit.

As a result, EDEN will no longer automatically match rents that have been approved at a similar or the same property for future tenants. Instead, EDEN will follow the analysis described in this policy to arrive at a reasonable and affordable rent.

Questions?

EDEN has a robust program to help property owners and managers to attract and retain renters for their properties. We encourage you to reach out to us if you have any questions or want additional information. Click here to email our Community Housing Agents or call the property owner hotline at 216-503-6369.