Code of Massachusetts Regulations
760 CMR - HOUSING AND LIVABLE COMMUNITIES, EXECUTIVE OFFICE OF
Title 760 CMR 38.00 - Department Of Mental Health Rental Subsidy Program
Section 38.07 - Contract Rent; Occupancy Charge; Subsidy Amount

Universal Citation: 760 MA Code of Regs 760.38

Current through Register 1518, March 29, 2024

(1) Consistent with DHCD guidance, the AA shall determine and authorize the amount of the Contract Rent for the Housing Unit that will include one or more Residence Units. The Contract Rent may include the cost of Utilities and shall not exceed the Maximum Allowable Rent for the Housing Unit.

(2) The Contract Rent is exclusive of:

(a) any charge for meals, laundry, or other services provided by the Service Provider or the owner; and

(b) any charge for residential services, counseling, training, therapy or treatment provided to the Client.

(3) A Client's net Household income shall be determined in the manner provided in 760 CMR 6.05(2), (3) and (4). Each Client shall pay an Occupancy Charge for a Residence Unit, which shall be 30% of the Client's net Household income if the Client must pay for any Utilities; or which shall be 35% of the Client's net Household income if the Client is not required to pay for any Utilities.

(4) The Occupancy Charge for a Residence Unit shall be determined, re-determined and verified as follows:

(a) At the time of initial eligibility and at least once in every 12 month period thereafter, the AA shall determine the Client's net Household income and monthly Occupancy Charge. If the Service Provider is the Tenant, the Service Provider shall provide the AA with reliable third-party verification of all the necessary information about income within the time period required by the AA, and the Client-resident shall provide to the Service Provider the verification information requested by the Service Provider within the time period required by the AA, in accordance with DHCD guidance. If the Client is the Tenant, the Client-tenant shall provide the AA with the verification information within the time period required by the AA, in accordance with DHCD guidance. The AA shall then determine whether the Client's Occupancy Charge must be adjusted or whether the Client is no longer financially eligible pursuant to 760 CMR 38.05(2)(a), and notify the Service Provider, the Client, and DMH, in accordance with DHCD guidance.

(b) If the Service Provider is the Tenant, the Service Provider shall inform the AA of all increases or decreases in the Client-resident's monthly Household income of 30% or more within 30 days of such increase or decrease. If the Client is the Tenant, the Client-tenant shall inform the AA of all increases or decreases in the Client-tenant's monthly Household income of 30% or more within 30 days of such increase or decrease in accordance with DHCD guidance. When the AA determines that the Client's Occupancy Charge should be adjusted, the AA shall notify the Service Provider, the Client, and DMH, in accordance with DHCD guidance.

(c) Any change in financial eligibility shall be effective six months after which conditions were met pursuant to 760 CMR 38.05(2)(a). Any increase in a Client's Occupancy Charge shall be effective on the first payment date of the second month following the report to the AA and verification of the new income information. Any decrease in a Client's Occupancy Charge shall be effective on the first payment date following the report to the AA and verification of the new income information.

(5) Failure of the Service Provider to timely comply with the requirements of 760 CMR 38.07(4)(a) through (c), shall result in loss of the Voucher for which the Service Provider did not meet the requirements, consistent with DHCD guidance.

(6) The Occupancy Charge shall be paid monthly by the Client, to the Service Provider when the Service Provider is the Tenant, and to the owner when the Client is the Tenant. When the Occupancy Charge is paid to the Service Provider, the Service Provider shall promptly forward it to the owner. The AA will pay the subsidy portion of the rent (Contract Rent minus Occupancy Charge) directly to the owner.

(7) Subsidy Amount.

(a) Where a Residence Unit is occupied by a Client, the amount of the subsidy equals the Contract Rent (or prorated portion in the case of a Residence Unit that is only a portion of a Housing Unit) minus the Occupancy Charge.

(b) Where a Residence Unit is vacant during a grace period established in accordance with DHCD guidance, and the Service Provider is the Tenant, the amount of the subsidy equals 100% of the Contract Rent (or prorated portion in the case of a Residence Unit that is only a portion of a Housing Unit).

(c) Where a Residence Unit is vacant beyond a grace period established in accordance with DHCD guidance, and the Service Provider is the Tenant, the amount of subsidy equals $0 and the Service Provider is responsible for 100% of the Contract Rent.

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