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10 <br /> Over $40,000 or rehabilitation involving refinancing 15 <br /> or acquisition of newt constructed housing 20 <br /> New constructionq y g <br /> (f)Subsequent rents during the affordability period. <br /> (1) The maximum HOME rent limits are recalculated on a periodic basis after HUD determines fair <br /> market rents and median incomes. HUD then provides the new maximum HOME rent limits to <br /> participating jurisdictions. Regardless of changes in fair market rents and in median income over <br /> time, the HOME rents fora rp oject are not required to be lower than the HOME rent limits for the <br /> rp oject in effect at the time of rp oiect commitment. <br /> (2) The participating jurisdiction must provide rp oject owners with information on updated HOME <br /> rent limits so that rents may be adjusted (not to exceed the maximum HOME rent limits in paragraph <br /> ff)1( ) of this section) in accordance with the written agreement between the participating jurisdiction <br /> and the owner. Owners must annually provide the participating jurisdiction with information on rents <br /> and occupancy of HOME-assisted units to demonstrate compliance with this section. The <br /> participating *urisdiction must review rents for compliance and approve or disapprove them every <br /> year. <br /> (3) Any increase in rents for HOME-assisted units is subject to the provisions of outstanding leases, <br /> and in any event, the owner must provide tenants of those units not less than 30 days prior written <br /> notice before implementing any increase in rents. <br /> (g)Adjustment of HOME rent limits for an existing project. <br /> (1) Changes in fair market rents and in median income over time should be sufficient to maintain the <br /> financial viability of a rp oject within the HOME rent limits in this section. <br /> (2) HUD may adjust the HOME rent limits fora rp oject, only if HUD finds that an adjustment is <br /> necessary to support the continued financial viability of the rp oject and only by an amount that HUD <br /> determines is necessary to maintain continued financial viability of the rp olect. HUD expects that this <br /> authority will be used sparingly. <br /> (h)Tenant income. The income of each tenant must be determined initially in accordance with <br /> 92.203(a)(1)(i). In addition, each year during the period of affordability the rp olect owner must re- <br /> examine each tenant's annual income in accordance with one of the options in § 92.203 selected by <br /> the participating jurisdiction. An owner of a multifamily rp olect with an affordability period of 10 years <br /> or more who re-examines tenant's annual income through a statement and certification in <br /> accordance with § 92.203(a)(1)(ii), must examine the income of each tenant, in accordance with§ <br /> 92.203(a)(1)(i), every sixth year of the affordability period. Otherwise, an owner who accepts the <br /> tenant's statement and certification in accordance with § 92.203(a)(1)(ii) is not required to examine <br /> the income of tenants in multifamily or single-family rp ojects unless there is evidence that the <br /> tenant's written statement failed to completely and accurately state information about the family's <br /> size or income. <br /> (!)Over-income tenants. <br /> (1) HOME-assisted units continue to qualify as affordable housing despite a temporary <br /> noncompliance caused by increases in the incomes of existing tenants if actions satisfactory to HUD <br /> are being taken to ensure that all vacancies are filled in accordance with this section until the <br /> noncompliance is corrected. <br />