8301.1 Lease Approval. DCHA may not approve a lease unless it determines that:

1. (a) The initial gross rent does not exceed the reasonable rent as determined by DCHA in accordance with this Chapter; and
2. (b) The family portion of the rent does not exceed forty percent (40%) of the participant's adjusted monthly income.

8301.2 When Determinations Required. DCHA is required to make a determination of rent reasonableness upon any of the following eventualities:

1. (a) At initial lease up, or lease up upon transfer;
2. (b) Before any increase in rent to Owner is approved;
3. (c) If sixty (60) days or more before the family's annual reexamination date there is a 5% or greater decrease in the published FMR for the unit size as compared to the previous FMR;
4. (d) At the election of DCHA;
5. (e) At the discretion of the US Department of Housing and Urban Development.

8301.3 Reasonable Rent Determination. The reasonable rent determination is undertaken on a case-by-case basis. At any time a rent determination is undertaken in accordance with 8301.2 above, the following process is used for determining whether the gross rent proposed to be charged by the Owner is reasonable.

1. (a) DCHA when determining reasonable rent always considers items (i) through (ix) and may consider items (x) and (xi) at its option as follows:
2. (i) Square Feet
3. (ii) Number of Bedrooms
4. (iii) Maintenance Services provided by the lease
5. (iv) Location
6. (v) Unit Type
7. (vi) Quality
8. (vii) Date Built
9. (viii) Amenities included in the lease
10. (ix) Utilities if provided by Owner
11. (x) Number of Bathrooms
12. (xi) Other Services provided under the lease

(b) DCHA maintains an automated database which includes data on comparable unassisted units for use by staff in making rent reasonableness determinations.

(c) DCHA does not establish minimum base rent amounts.

(e) DCHA shall use at least two comparable unassisted units for each rent determination with all comparables based on the rent that the unit would command if leased in the current market within the last twelve (12) months.

(f) The data for other unassisted units may be gathered from newspapers, realtors, professional associations, inquiries of owners, market surveys, and other available sources.

(g) The market areas for rent reasonableness are indicated by census tract, within the District of Columbia and the determination of reasonable rent is made by comparable rents on similar units within the same or nearby census tracts.

8301.4 Owner Information. The Owner is required to provide DCHA with information if requested on rents charged by the owner for other units owned by the Owner either at the same premises or elsewhere in the District of Columbia.

8301.5 Owner Certification. Acceptance of each monthly housing assistance payment is a certification by the Owner that the gross rent to the owner is not more than rent charged by the owner for comparable unassisted units in the premises for multi-unit premises, or in the same market area for single unit premises.

SOURCE: Notice of Emergency and Proposed Rulemaking published at 52 DCR 577 (January 21, 2005); as amended by Notice of Emergency and Proposed Rulemaking published at 52 DCR 5094 (May 27, 2005); as amended by Notice of Final Rulemaking published at 52 DCR 8631 (September 23, 2005).