Section 236 Tenants Who are Paying Between Basic and Market Rent (WITHOUT the benefit… — HUD Handbook 4350.3 REV-1 — Occupancy Requirements of Subsidized Multifamily Housing Programs

NOTE: If the tenant receives assistance under Section 8, Rent Supplement, or Rental Assistance Payment and this is a Section 236 project, use Exhibit 3-14.

A. Calculate the difference between market rent and tenant rent without prorations.
1. _____ Enter the Market Rent from Market Rent field of the HUD-50059.
2. _____ Determine the Tenant Rent in accordance with the instructions for Tenant Rent of the HUD-50059.
3. _____ Subtract line 2 (Tenant Rent), from line 1 (Market Rent) and enter the result here. This is the difference between the Market Rent and the Tenant Rent, before considering prorations.
B. Calculate the prorated difference between the market rent and the tenant rent.
1. ______ Enter the number of people in the family who are Ineligible Persons; i.e. persons who do not meet the definition of a citizen or eligible noncitizen. See the Glossary for the definition of these terms.

______ Enter the fraction that represents the number of Ineligible Persons (numerator) and the number of persons in the family (denominator).

EXAMPLE: There are five persons in the family, of which two are ineligible. The fraction for this family would be 2/5.

_____ Multiply the amount in line 3, the difference between the Market Rent and the Tenant Rent before prorations, by the fraction determined in line 5. Enter this amount in Line 6. This represents the prorated difference between the Market Rent and the Tenant Rent.