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Q&A
Comparison of new rents to existing rents
0:18:11
ยท
38 sec
Kerry LaBotz from HPD discusses the potential differences between new and existing rents, acknowledging that they don't have a clear understanding of the current rent levels. She explains the general approach to rent-setting in preservation projects.
- HPD doesn't have a good handle on existing rent levels for this property
- Rents often need to increase in TPT projects to ensure sufficient funds for building operation
- HPD focuses on not rent-burdening tenants, setting a maximum program rent at 60% AMI
- Individual households will not pay more than 30% of their income in rent
Kamillah Hanks
0:18:11
So how will rents or the new rents be different from the existing rents?
Kerry LaBotz
0:18:19
I don't know that we have a good handle on what the existing rents are.
0:18:23
So we do know that typically for TPT projects and for many projects that come into HPD's preservation pipeline, we do need to increase rents because the rents are not sufficient to operate the building.
0:18:34
We always have a focus on not rent burdening tenants, so always ensuring that we are setting a maximum program rent, which is that 60% AMI that I referenced, but that tenants individually, their households will not pay more than 30% of their income.