760 CMR, § 6.04

Current through Register 1533, October 25, 2024

Section 6.04 - Rent Determination

(1)Amount of Rent.

(a) Monthly rent shall be charged Tenants of elderly/disabled housing in the following manner:

1. Where the Tenant does not pay for Utilities, rent shall be 30% of monthly net Household income as determined pursuant to 760 CMR 6.05.

2. Where the Tenant pays for some or all Utilities, rent shall be 25% of monthly net Household income as determined pursuant to 760 CMR 6.05.

(b) Monthly rent shall be charged Tenants of family housing in the following manner:

1. Where the Tenant does not pay for Utilities, rent shall be 32% of monthly net Household income as determined pursuant to 760 CMR 6.05.

2. Where the Tenant pays for one or more Utilities, but not all, rent shall be 30% of monthly net Household income as determined pursuant to 760 CMR 6.05.

3. Where the Tenant pays for all Utilities, rent shall be 27% of monthly net Household income as determined pursuant to 760 CMR 6.05.

(c) In the event the Tenant Household has been determined to be Overhoused and the Tenant has failed or refused to transfer to a unit of appropriate unit size offered by the LHA, following any such failure or refusal to transfer, the Tenant's monthly rent shall be 150% of the rent which would otherwise have been charged to Tenant.

(d) An LHA may round the amount of monthly rent to the nearest whole dollar notwithstanding the fact that rounding upward will cause rent to slightly exceed the applicable percentages set out in 760 CMR 6.04(1)(a), (b) and (c).

(e) Each Tenant Household shall pay a minimum rent of $5.00 per Household, provided that an LHA shall grant an exemption from application of the minimum monthly rent to any Tenant unable to pay such amount because of severe financial hardship, which shall include situations in which:

1. the family is awaiting an eligibility determination for an application for any federal, state, or local assistance program;

2. the Tenant would be evicted as a result of the imposition of the minimum rent requirements;

3. the income of the Tenant has decreased because of changed circumstances, including involuntary loss of employment, the occurrence of a death in the Household, and such other severe financial hardship situations as may be determined by the LHA.

LHAs shall notify Tenants of their right to seek an exemption. The exemption shall not apply to hardships of a temporary nature lasting 90 days or less. If a Tenant requests a hardship exemption and the LHA reasonably determines the hardship to be of a temporary nature, an exemption shall not apply to the 90 day period beginning upon the day in which the request for exemption is made to the LHA; provided that a Tenant may not be evicted during such 90 day period for nonpayment of rent. In such a case, if the Tenant thereafter demonstrates that the financial hardship is of a long term nature, the LHA shall retroactively exempt the Tenant from the applicability of the minimum rent requirements for such 90-day period. If a retroactive exemption does not apply, the Tenant shall make payment of the minimum rent within 15 days of the end of the 90-day period. Late fees shall not apply to minimum rent charged by the LHA while the Tenant is seeking an exemption.

(2)Rent Payment.

(a) Tenant shall pay rent monthly in advance on or before the first day of each month. Rent for any fraction of a month of occupancy at the beginning or end of the term shall be charged on a pro rata basis. The monthly rent shall remain in effect until a new monthly rent shall have been re-determined by the LHA in accordance with 760 CMR 6.04(4) or (5).

(b) During the term while a lease is in effect the LHA shall accept as rent all payments which the Tenant shall have designated as rent. The acceptance of such rental payments by the LHA shall not constitute a waiver of payment for other amounts due or of any other past, present, or future obligation under the Tenant's lease. Following termination of the lease, if Tenant fails to vacate, Tenant shall pay monthly, in advance, the fair value of use and occupancy of the unit as determined by the LHA, but not less than the rent in effect at the time of termination, provided that if the termination is contested in court, no amount higher than such rent shall be charged unless and until the termination is upheld or approved by the court. Payment for such use and occupancy, however designated, shall not create a new tenancy.

(3)Failure to Pay Rent.

(a) In the event that a Tenant shall fail to pay all or any part of the rent within seven days of its due date, the LHA may declare the unpaid rent delinquent and issue a Notice of Termination of lease. Prior to issuing such a notice, except where the Tenant is habitually delinquent in paying rent and has had a prior opportunity for discussion within the prior six months, the LHA shall provide the Tenant with an opportunity to discuss the reason for the late payment.

(b) In the event that Tenant shall fail to pay all or any part of the rent within 30 days of its due date, the LHA shall impose a fee in the amount of $25 for failure to pay rent when due. The LHA may also charge Tenant interest in accordance with applicable law and with the terms of Tenant's lease. If Tenant shall have shown good cause for late payment to the LHA, the LHA in its discretion may waive the interest or fee for late payment. If the LHA and Tenant shall have entered a repayment agreement the LHA may waive the interest or fee for late payment of the rent which is the subject of the repayment agreement. By charging interest or the fee for late payment of rent, the LHA shall not have condoned Tenant's breach of Tenant's obligation to pay rent when due, and the LHA shall not thereby waive any rights to issue a Notice of Termination of the lease, to bring eviction proceedings against Tenant and to collect arrearages, constable fees and costs on account of the Tenant's failure to pay rent when due.

(c) In the event that a Tenant's failure to pay rent due results in a monetary judgment and execution for the LHA the LHA may seek to intercept funds which are otherwise payable by the Commonwealth to Tenant on or after January 1, 2005, through the Comptroller's Set off Debt Collection Program or successor program in the manner provided by the program and as may be specified in guidelines issued by EOHLC.

(4)Annual Re-determination.

(a)The Re-determination Date. The LHA shall re-determine each Tenant's monthly rent once annually to be effective on a specific re-determination date which shall be the first day of a month. This re-determination date should be the same each year unless the LHA gives the Tenant reasonable advance notice of a different date no more than a year subsequent to the most recent notice of rent as determined by the LHA.

(b)The Notice of Re-determination. At least 60 days prior to the re-determination date, the LHA shall send the Tenant written notice that rent shall be re-determined effective on the redetermination date and in this notice of re-determination shall request pertinent information as to the Household's income, employment, continued eligibility, and composition.

(c)Response by the Tenant. Within 30 days following the date of the notice of redetermination, the Tenant shall provide, under pains and penalties of perjury, sufficient complete and accurate information for the LHA to make a reliable determination of the Household's income, exclusions from income, and applicable deductions.

(d)The Re-determined Rent. No less than 14 days prior to the re-determination date, the LHA shall re-determine rent by computing the applicable percentage of annual net Household income. In general, annual net Household income shall be an annualization of then current monthly net Household income. However, where annualization of monthly income is unlikely to reflect actual annual income, the LHA may use some other method for determining the annual amount of income, including use of the prior year's income.

If within the time allotted, the Tenant shall have failed to provide sufficient, complete, and accurate information in order for the LHA to make a reliable re-determination of the Household's monthly net Household income, the LHA may make a re-determination of such income based on whatever reliable information which it has or may continue to use its most recent income re-determination. The LHA may thereafter make an adjustment of rent retroactive to the re-determination date, following receipt of more complete and accurate information.

(e)Notice and Effective Date of the Re-determined Rent. The LHA shall give the Tenant no less than 14 days prior written notice of the amount of the rent to be effective on the redetermination date. In the event that the information provided by or on behalf of the Tenant shall have been incomplete or inaccurate, upon receipt of more complete or accurate information, in addition to its other remedies, the LHA shall appropriately adjust the rent. Following such adjustment, the LHA shall give the Tenant an amended written notice of the re-determined rent which shall be retroactively effective to the re-determination date. Each notice of re-determined rent shall set out the monthly gross Household income (¹/₁₂ of annual gross Household income) and the monthly net Household income (¹/₁₂ of annual net Household income) on the basis of which the re-determined monthly rent was computed.

(5)Interim Re-determination of Rent.

(a)Increases. If in any month the monthly gross Household income of a Tenant Household increases by 10% or more from the amount contained in the most recent notice of rent as (re)determined by the LHA, the Tenant shall report any such increase, including any changes in income, exclusions and deductions. The Tenant shall report the increase to the LHA by the seventh day of the month following the month in which the increase occurred, provided that if the increase was anticipated in the prior computation of gross Household income, the Tenant need not report the increase.

The LHA shall require verification of such increase in income. If as a result the amount of rent increases, at least 14 days before the effective date of a rent increase, the LHA shall give the Tenant a written notice of the re-determined rent. Any such increase in rent shall be made effective on the first day of a month. The notice of re-determined rent shall set out the monthly gross Household income and the monthly net Household income, on the basis of which the re-determined monthly rent was calculated.

In the event that a Tenant shall have failed to report such an increase in income by the seventh day of the month following the increase, in addition to its other remedies, the LHA, upon discovery that increased rent was due, shall make the effective date of the increase in rent retroactive to the first day of the second month following the increase in income.

(b)Decreases. If, in any month, the monthly gross Household income of a Tenant Household decreases, the Tenant may provide the LHA with verified information substantiating the decrease in gross income. Following receipt of such information, the LHA shall re-determine rent. The LHA shall give the Tenant written notice of any decrease in rent which shall be effective on the first day of the month following receipt of the information or at such earlier time as the LHA shall find to be warranted in the event that circumstances delayed receipt of verified information. The notice shall set out the monthly gross Household income and the monthly net Household income, on the basis of which the re-determined monthly rent was calculated.

(6)Verification. The Tenant shall provide and authorize reasonable verification of information regarding income, exclusions from income and deductions (whether at initial determination or at any re-determination) in order to insure reliability of the information. For wages, interest, dividends, annuities, pensions or recurring lottery winnings, the Tenant shall submit copies of the prior year's tax reporting forms received by the Tenant (including W-2 forms, W-2G forms, and 1099 forms). For income from a fiduciary, the Tenant shall submit a copy of the prior year's K-1 form regarding such income. For self-employment income the Tenant shall submit a copy of the prior year's Schedule C of US Form-1040. The Tenant shall also submit copies of other tax reporting forms as are appropriate for other types of income.

The LHA may also require written third party verification (verification by a reliable person or entity, other than the Tenant or Household Member, with knowledge of the facts) of one or more items of income, exclusions, or deductions in the event that the LHA finds that the documentation provided by the Tenant is not adequate. In such a case, the LHA may also verify income, exclusions, or deductions by checking with the sources. Verification of income, exclusions or deductions, if not complete by the rent re-determination date, may continue until completion. The Tenant shall assist the LHA in securing reasonable verification and shall promptly provide all written authorizations for such verification upon request by the LHA.

If the LHA has reasonable cause to believe that any member of the Household is supplying false or incomplete information about his or her income, upon request by the LHA the Tenant or other Household Member shall sign an appropriate Internal Revenue Service form, to authorize the IRS to furnish the LHA with a copy of the first page of the prior year's US Form 1040 filed by the Tenant or other Household Member. Information which may have been provided by the Department of Revenue through a wage and bank match or otherwise may be used for verification of income, exclusions, and or deductions.

(7)Grievances on the Amount of the Re-determined Rent and Time for Payment. In the event that a Tenant files a Grievance as to the amount of a re-determined rent within 14 days of the LHA's notice of the re-determined rent, the Tenant shall continue to pay the rent then in effect (unless the re-determined rent is lower) until disposition of the Grievance. Following disposition of the Grievance, the Tenant shall forthwith pay any additional amounts determined to have been due but not paid since the effective date set out in the notice of re-determined rent or the LHA shall credit the Tenant with any amounts paid but determined not to have been due. In the absence of a Grievance, the re-determined rent shall be paid beginning on its effective date.

(8)Nondisclosure or Misrepresentation of Income. If a Tenant shall misrepresent, fail to disclose, or fail to disclose in a timely manner pertinent information which would increase net Household income, upon request Tenant shall pay the balance of rent, which otherwise should have been paid. Interest on such balance may be charged in accordance with law. Such misrepresentation or nondisclosure without good cause shall constitute cause for termination of the lease and eviction of the Tenant if the consequent underpayment of rent was 10% or more of the monthly rent which should have been paid.

(9)Late Payments of Income. If a Tenant receives any includable income at a date later than the date when the income would have been paid in the normal course (such as payment of past due workers' compensation benefits for lost wages, past due SSI or SSDI benefits, or retroactive salary increases, and if such income has not been included in the determination of Household income), Tenant shall report receipt of the income to the LHA within seven days after receipt. The LHA shall charge a one time retroactive rent charge on account of any part of such income which in the normal course would have been paid at a time when Tenant occupied an LHA unit. A Tenant who receives and timely reports receipt of such income shall pay any such retroactive rent due on account of such income without interest upon receipt of a bill from the LHA. If Tenant shall fail to report such income or shall fail to make such a one time retroactive rent payment within 30 days of receipt of a bill, the LHA may charge interest on the additional rent due for the period beginning 30 days after receipt of the income at a rate of interest in accordance with law and the LHA's rules.