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VI. Rental Assistance <br /> Rental assistance may be provided under homelessness prevention category of activities <br /> or under the rapid re-housing category of activities. <br /> 1. Use with other subsidies: Except for a one-time payment of rental arrears on the <br /> tenant's portion of the rental payment, rental assistance cannot be provided to a <br /> program participant who is receiving tenant-based rental assistance, or living in a <br /> housing unit receiving project-based rental assistance or operating assistance, <br /> through other public sources. Rental assistance may not be provided to a program <br /> participant who has been provided with replacement housing payments under the <br /> URA during the period of time covered by the URA payments. <br /> Rent must meet rent reasonableness standards and CANNOT EXCEED HUD'S published <br /> FMRs for the area. In some communities,the reasonable rent for a specific unit may be <br /> lower than the FMR that has been established for the community. <br /> 2. Rent Restrictions: Rental assistance cannot be provided if it exceeds the Fair Market <br /> Rent(FMR) established by HUD,as provided under 24 CFR part 888,and complies <br /> with HUD's standard of rent reasonableness,as established under 24 CFR <br /> 982.507. <br /> For purposes of calculating rent under this section, the rent shall equal the sum of the <br /> total monthly rent for the unit,any fees required for occupancy under the lease (other <br /> than late fees and pet fees) and, if the tenant pays separately for utilities, the monthly <br /> allowance for utilities(excluding telephone)established by the public housing authority <br /> for the area in which the housing is located. <br /> The City requires the utilization of the Utility Allowance guidance. Utility Allowance <br /> guidance is released annually(May or June)and is located at: <br /> https://www.in.gov/mvihcda/430.htm/ <br /> 6.1 — Rental Assistance Agreements <br /> 1. Lease:The subrecipient must ensure that each program participant receiving rental <br /> assistance must have a legally binding, written lease for the rental unit, unless the <br /> assistance is solely for rental arrears.The lease must be between the owner and the <br /> program participant. Where the assistance is solely for rental arrears, an oral <br /> agreement may be accepted in place of a written lease, if the agreement gives the <br /> program participant an enforceable leasehold interest under State law and the <br /> City of South Bend - ESG Policies and Procedures Manual 38 <br />