RAD Category Search

The RAD relocation requirements described in PIH/Housing Notice 2016-17 (the RAD Fair Housing, Civil Rights, and Relocation Notice) shall apply to residents of the Section 18 units, in lieu of the relocation requirements under 24 CFR part 970, in accordance with 84 Fed. Reg. 54630 (Oct. 10, 2019) and the Section 1.5.B.2.a of the RAD Notice. All of the RAD relocation requirements shall apply to residents of the Section 18 units, including, but not limited to, the resident notice and meeting requirements, the right to return, and relocation assistance and payments. The PHA may not provide different relocation rights and benefits to residents of the project based on whether they reside in a RAD unit or a Section 18 unit. All residents of the Converting Project have a right to remain in or return to the project-based replacement units consistent with Section 6.1 of the RAD Relocation Notice (H/PIH 2016-17). The RAD Relocation Notice applies to non-RAD PBV units at the Covered Project, as further explained in the Section 1.5.B.2.a of the RAD Notice. Per Section 1.6.C.1 of the RAD Notice, “current households cannot be excluded from occupancy at the Covered Project based on any rescreening, income eligibility, or income targeting.” This also applies to current public housing residents of the Converting Project that will reside in non-RAD PBV units placed in a project that contains RAD PBV units or RAD PBRA units. All residents that return to the non-RAD PBV units will have the same resident rights as the residents in the RAD PBV units. A list of resident rights that apply to the non-RAD PBV units is fully described in the RAD Notice. A summary listing can be found in Table 1 of Att. 1D of the RAD Notice (p. 147-148), which lists the resident rights that must be included in the PHA Plan and the sections of the RAD Notice where you can locate detailed information about each resident protection. It states by way of summary that “tenant protections for RAD PBV residents apply to non-RAD PBV residents of the same Covered Project with the exception of Choice Mobility. Standard PBV Choice Mobility requirements apply to non-RAD PBV residents.” Both RAD (Section 1.8 of the RAD Notice) and Section 18 (24 CFR 970.9) require consultation with residents regarding the proposed actions. Under a RAD/Section 18 blend, these discussions should occur at the same time within the same meetings. PHAs can generally satisfy the Section 18 consultation requirements for impacted residents and with the resident organizations by complying with RAD consultation requirements (i.e., by providing notification letters and resident meetings required by the RAD notice). However, Section 18 also requires the PHA to consult with the Resident Advisory Board (RAB).

Over-Income Residents in RAD/Section 18 Blends

If a PHA is considering a RAD/Section 18 blend for a property, and that property has an over-income resident, would the over-income resident be moved back into a RAD unit or a Section 18 unit? What's the rent subsidy source for the original resident who is over-income? Do they still qualify for rental subsidy under RAD and/or Section 18 if they are over-income?

According to the RAD Relocation Notice Section 6.2, “any public housing or Section 8 assisted resident that may need to be relocated temporarily to facilitate rehabilitation or construction has a right to return to an assisted unit at the Covered Project once rehabilitation or construction is complete. The right to return is not a right to any specific unit in the Covered Project.” The Covered Project refers to both the RAD and Section 18 units in a Blend, so a relocated resident could be moved back into a unit under the RAD or Section 18 HAP Contract. Regardless of their income, the resident has the right to return to a properly sized unit. An over-income tenant would not receive subsidy but would be placed on and/or remain under the applicable HAP Contract, as described in Section 1.6.C.9 of the RAD Notice. This provision applies to both the RAD and Section 18 units. If the tenant’s income drops and they are eligible for HAP subsidy, their subsidy source would depend on which unit they moved back to.

MIXING ELDERLY & FAMILY POPULATIONS WITHIN FHA-INSURED RAD CONVERSIONS

Our PHA has a large AMP that contains two buildings, one of which has a preference for the elderly and the other is for general occupancy. These two buildings are adjacent to one another and have historically been managed as one site. We wish to process both buildings as part of a single RAD transaction (to be owned as one single-asset entity) and wish to pursue an FHA-insured first mortgage. Under RAD, can an FHA transaction include both elderly and general occupancy populations?

Yes. FHA does have restrictions on combining elderly and family populations for unassisted properties that are developed through the Housing for Older Persons Act (HOPA). Generally, for HOPA properties, not more than 20% of the residents can be under 62 years of age. However, RAD transactions are not eligible for HOPA and, therefore, there is no FHA restriction in combining elderly and family populations as long as the project otherwise does not prohibit family members under the age of eighteen.

New Resident Eligibility for Family Self Sufficiency (FSS) Program After Conversion

Are new tenants who come under lease post-RAD conversion eligible for the Family Self Sufficiency (FSS) program?

For PBV conversions, new residents would be eligible for FSS as long as the PHA administers an FSS program. For PBRA conversions, FSS funds awarded in FY14 and prior FSS funds may be used only to continue to serve FSS participants living in units converted under RAD to PBRA. Pursuant to FY 2015 Appropriations Act, any FSS funds awarded in FY 2015 (and forward if the provision is extended), may be used to also serve any other PBRA resident, affected by RAD or not.

Tenant Rent for Non-LIHTC Units

When a household is living in a Covered Project unit assisted under a Section 8 HAP contract, the unit is not subject to LIHTC requirements and the household’s total tenant payment (TTP) exceeds the Section 8 Gross Rent, how are rents determined?

For units that convert under RAD that are not subject to LIHTC requirements, households pay to owners 30% of their adjusted income, also referred to as Total Tenant Payment (TTP), minus any applicable utility allowance. See 24 CFR §5.628. Owners may find that a given household’s calculated TTP exceeds the Gross Rent for their unit, particularly where the household has a RAD right to return to the unit. Under RAD, the household’s payment to the owner is the calculated TTP minus any applicable utility allowance even when the TTP exceeds Gross Rent. TTP is not capped at the Gross Rent for the unit. However, the owner/PHA may choose to implement a maximum rent equal to the 60% of AMI LIHTC rents for the metropolitan area in which the project is located for households whose TTP exceeds Gross Rent (or 80% of AMI LIHTC rents if other units at the Covered Project are part of an LIHTC project using the average income test). If an owner chooses to implement the LIHTC maximum rent, it must apply uniformly to any household living in the Covered Project and not in an LIHTC unit whose TTP exceeds Gross Rent.

Tenant Rents in LIHTC Units

When a household is living in a unit at a Covered Project assisted under a Section 8 HAP contract and the unit is subject to LIHTC requirements, how are rents determined?

Section 8 rent calculation rules apply to households living in units that are assisted under a Section 8 HAP contract and are also subject to LIHTC requirements. As such, households pay to owners 30% of their adjusted income, also referred to as Total Tenant Payment (TTP), minus any applicable utility allowance. See 24 CFR §5.628. As long as HAP is paid under the contract, the tenant’s rent is calculated in this manner regardless of the normally applicable LIHTC rent. The RAD notice says that when TTP rises above the Gross Rent and no assistance is paid under the HAP contract (or “zero-HAP”), the tenant pays to the owner the lower of TTP, less any utility allowance, or "any applicable maximum rent allowable under LIHTC regulations." The maximum rent refers to the designated Area Median Income (AMI) set-aside (e.g. 40%, 50% or 60% of AMI) for the unit that the household occupies. Some tax credit allocating agencies may have set aside requirements in addition to the federal set aside requirements under Section 42 of the Internal Revenue Tax Code, which can vary by project depending on their LIHTC award. In that event, the applicable maximum rent shall be the maximum rent agreed to by the allocating agency for the unit in the tax credit allocation process. Based on the locality and the designated AMI set-aside, the maximum LIHTC rent for a particular unit may be above or below the Gross Rent under the HAP contract. Accordingly, in some rare cases where the LIHTC rents are below the Section 8 Gross Rent and a family’s incomes rises such that TTP exceeds the Section 8 Gross Rent, a household’s rent could decrease.

HUD Approval of Tenant Selection Plan

The RAD Notice indicates that a Tenant Selection Plan is only required to be submitted for HUD approval if the owner plans to adopt any local or residency preferences. My building currently serves the elderly/disabled and will continue to do so after closing but we do not wish to establish a preference and have indicated that in our AFHMP. Do we still need to submit a Tenant Selection Plan to HUD?

While a TSP must be created and maintained on file for all Multifamily PBRA projects, HUD does not review or approve tenant selection plans unless the Owner adopts a local or residency preference. There are various types of owner-adopted preferences allowable under PBRA as defined in HUD Handbook 4350.3, REV-1, Chapter 4, Paragraph 4-6.C. 1) A Residency Preference, provides applicants who live in a specific geographic area at the time of an application a priority over nonresidents on the waiting list. 2) A Working Families preference would give applicants in which the head of household or spouse is employed priority over other applicants on the waiting list. 3) A Disability Preference would give applicants that include a disabled family member preference over other applicants on the waiting list. 4) A Victims of Domestic Violence preference would give priority to families who have been victim of domestic violence, dating violence, or stalking priority over other applicants on the waiting list. 5) Owners may also adopt a preference for single persons who are elderly, displaced, homeless, or persons with disabilities over other single persons. In order for a RAD converted projects to continue to serve an elderly/disabled population, the Owner must adopt a preference as described in number 5 above, however, the adoption of a Single Elderly or Disabled Preference would not trigger the TSP submission requirement. Refer to HUD Handbook 43503., REV-1, Chapter 4, Paragraph 4-6.C. for further information on owner-adopted preferences.

Work Requirements after Conversion for New Residents

Are work requirements for new residents (not returning residents) permitted under PBRA?

Owners may not require a specific minimum income, however, owners may adopt a Working Families preference in selecting families from the waiting list for those families in which the head of household or spouse is employed. Even if the owner adopts such a preference, however, discrimination against persons unable to work is prohibited. Owners must not deny the preference to households in which the head or spouse is 62 or older, or to a person with disabilities. Refer to HUD Handbook 4350.3, REV-1, Chapter 4, Paragraphs 4-6.C.2 and 4-8.A.

Right to Return and Over Crowded Unit

If a family is currently over-crowded in their unit according to HQS standards and there is no way to accommodate them in the building because there are no vacancies, is the new owner obligated to honor the family’s right to return to the property or to find the family housing elsewhere because the owner would be violating the over-crowding standard? If it’s the latter, what options are the new owner entitled to give to this family?

In the situation you describe, the owner must offer the family a unit in the converted project. The owner may also choose to offer another unit elsewhere that is of the proper size, but the family may not be required or pressured to accept the alternative unit.

Responsibility for Reasonable Accommodations for Tenants after Closing

Under RAD, if an applicant or resident needs a reasonable accommodation, who is to pay for the accommodation?

Section 504 (of the Rehabilitation Act of 1973) requires property owners to provide and pay for physical and procedural accommodations, as needed by applicants and residents with disabilities, for properties with "federal financial assistance". Public housing is "federal financial assistance", and so are PBRA and PBVs. Accordingly, under RAD you have the same responsibilities regarding reasonable accommodations as you did under the public housing program. The HUD website contains a one-stop Section 504 resource at: http://portal.hud.gov/hudportal/HUD?src=/program_offices/fair_housing_equal_opp/disabilities/sect504.

Designating Elderly Units in RAD PBV Conversion

In a RAD conversion to PBVs, can a PHA “designate” a building as elderly

No. Prior to the enactment of HOTMA, the PBV program had an income mixing component, wherein not more than 25% of the units in the project could be assisted, with exceptions for units made available for certain types of households, including elderly households. Under those requirements, a PHA could designate specific units for elderly occupancy. Since HOTMA has eliminated this income-mixing requirement, PHAs can no longer designate units in such a manner. A PHA may, however, adopt a project-specific waiting list and an admission preference for elderly households.

Policy Regarding Tenants Who Were Not Properly Screened at Initial Occupancy

What is the policy with respect to tenants who were not properly screened upon initial occupancy and do not qualify for a particular public housing unit?

RAD does not allow re-screening of tenants, meaning residents cannot be rescreened because of a RAD conversion. PHAs should be following their occupancy policies up until the RAD closing. These policies should outline when re-certifications and interim re-examinations may take place.

Waitlist Management for PBRA Conversions

I am converting a public housing project to RAD using PBRA. There is an existing public housing project-specific waiting list, and I’m planning to implement a project-specific PBRA waiting list. What happens to folks currently on the public housing project-specific waiting list? Post-RAD, how would we select an applicant to fill a vacated unit?

See Section 1.7.C.3 of the RAD Notice, which discusses establishment of the new waiting list. Because your project has an existing project-specific public housing waiting list, all applicants on that waiting list would transfer to the new post-RAD PBRA waiting list, where their priority will be “in accordance with the date and time of their application to the original project's waiting list” as required by the RAD Notice. After transferring all applicants from the existing public housing waiting list, you would then manage the new PBRA waiting list, and select applicants from that waiting list to fill vacated units, in accordance with the requirements of HUD Handbook 4350.3 (Chapter 4 Waiting List and Tenant Selection).

Transferring of Site-Based PBV Waitlist Following Conversion

When a site-based waiting list is transferred following conversion, am I required to serve all of the existing applicants on the waiting list in their current order before serving any new applicants and without respect to adopted preferences?

No. Once the waiting list is transferred, applications and preferences continue to operate in accordance with applicable regulations and locally adopted policies. As a result, new applicants following conversion may get housed ahead of applicants who were on the public housing site based waiting list at the time of conversion if they qualify for a higher preference even though they are entering the waiting list at a later date. There is no requirement to house all of the people who were on the PH site-based waiting list at the time of conversion before housing anyone else.

Responsible Entity for Monitoring Supportive Services after Closing

Who is responsible for monitoring the provision of supportive services, the PHA or the owner? Any guidance that you can provide would be greatly appreciated

The responsibility for monitoring, per 24 cfr 983.56(b)(2)(ii)(C), is on the PHA. “The PHA must monitor the excepted family’s continued receipt of supportive services and take appropriate action regarding those families that fail without good cause to complet either supportive services requirement. The PHA administrative plan must sate the form and frequency of such monitoring.”

Over Housed Families at Conversion

Some of the families are currently over-housed. How will these units be treated for subsidy purposes at conversion?

If there is not an appropriately-sized bedroom for the family to transfer into, the family can remain in the unit and unit will continue to be funded based on the actual bedroom size and the contract rent. But if an appropriately-sized unit becomes available, the family will be required to move at that time.

Change in Family Composition While in Temporary Unit

What are the reporting procedures should there be a change in family composition changes while the family is in a temporary unit? Would we just update the information using our current management software and submit to PIC or is there a different action needed.

A change in family composition during a temporary relocation period should be reported into either TRACS or PIC. Under PBRA conversions, once the property has converted, families will not be reported in PIC. Instead, owners will submit tenant data through 50059s in TRACS. Families should continue to be reported in TRACS even while temporarily relocated from the property under HAP contract. For conversion to the PBV program, families temporarily relocated into units subsidized through the public housing, HCV, PBV, or other program that normally reports into PIC should report these changes in PIC.

Assistance Based on Unit Size or Household Size

If an over-housed household remains in their unit and continues to receive PBV assistance under the RAD program, will the assistance received be based on the unit size, and not on the household size?

The contract rent, and HAP assistance, will be based on the unit size, for both PBVs and for PBRA. If there is no appropriately sized unit available to move the family into and the over-housed household is therefore permitted to remain in the unit, it will not impact the rent due from the tenant or the subsidy provided under the contract.

Certifying Tenants Through PIH or Multi-Family

If we elected to covert our ACC assistance to PBV or PBRA, will we be certifying tenants and receiving funding through the PIH office or Multi-Family? Will we use 50058 or 50059? Will we be using the TRACS system?

RAD conversions to PBVs will use the 50058 which will be submitted into PIC, just like certifications for any other family assisted under the Housing Choice Voucher program. Subsidy will be administered by the housing authority with whom the PBV HAP contract is signed, rather than through PIH. RAD conversions to PBRA will use the 50059 which will be submitted into TRACS. Subsidy will be administered by the Office of Multifamily Housing at HUD.

PH Tenant Leases for Less than a Year

We expect to have vacancies at the property that we are converting between now and closing. When a Public Housing tenant signs a lease, they are required by HUD to sign for a year for the initial lease term. We don’t want to have vacancies because that negatively impacts the budget, but we wouldn’t be able to keep a PH tenant on a PH lease once we convert. How should this be handled? Can we modify the PH lease to make it shorter?

PHAs should enter into normal lease terms with any resident moving in prior to conversion. All public housing residents, regardless of when they moved in, will need to be given at least 30-day prior notification that their public housing lease will be terminated at the effective date of the new HAP contract.

Tenant Recertification at Closing

Do residents of properties need to be re-certified at conversion?

No. All residents will maintain the same annual recertification date they would have had as public housing residents. Current residents are not subject to the rescreening, income eligibility, or income targeting provisions of either the PBV or PBRA programs. Following conversion: 1)For PBRA conversions, for the purposes of recording the resident in TRACS, owners should complete an initial HUD-50059 certification for each household that includes the same information previously found on the 50058, including the next annual reexamination date found on Line 2i; 2) For PBV conversions, the PHA would continue to use HUD Form 50058 for each household, but would consider the family a new admission and complete Section 11 (instead of Section 10). The Form should include the same information previously found on the 50058, including the next annual reexamination date found on Line 2i.

Family Self-Sufficiency Participants

How will Family Self-Sufficiency participates be handled in a RAD project?

Family Self-Sufficiency is specifically discussed in Notice PIH-2012-32 REV-1. See pages 40-41 for PBV conversions and page 54 for PBRA conversions.

Earned Income Disregard Period Under PBV RAD Conversion

Eligibility is grandfathered for public housing residents that occupy units converted to PBV via RAD. Would this grandfathering also apply to residents that were working through their Earned Income Disregard periods? In public housing, the EID eligibility is not limited to persons with disabilities as it is in Section 8. I am assuming that their EID eligibility would continue through to completion and during their tenancy in the PBV unit. However, wanted to confirm that here.

See pages 42 and 43 of Notice PIH-2012-32 REV-1 that discuss the continuation of Earned Income Disregard. Also see pages 39 and 40 that discuss the process for phasing in the rent increase that would occur at the end of the EID period.

Eligibility of Police Officer Housing Under RAD

To help deter crime, we have police officers who live in the public housing units even though they do not qualify for assistance. Are police officers allowed to continue to live at the property following conversion?

If converting to PBRA 245 CFR 5.661 provides for police and other security personnel to reside in an assisted project. MFH Handbook 4350.3, Section 3-8.D provides guidance on the admission of over-income tenants, and further in the Handbook, how to calculate rents. These will need to be approved by the contract administrator (HUD field office) to ensure the needs are there and the rents are appropriate. Under PBV, there is no provision for police officers to live in assisted units. However, if the police officer family was living in public housing at the time of the conversion, they can remain in the unit even though they may be over-income because RAD prohibits the re-screening of current public housing residents. However, once that family moves out, only income eligible applicants can be admitted into the PBV program and the participant must be receiving some amount of HAP to move into the unit. A PHA that wishes to continue to have police officers reside in units in the project may consider not including those units on the HAP contract.

Section 8 Occupancy Standards after conversion

Tenants in place at the time of conversion will be housed in accordance to existing PH occupancy standards; is it permissible to have subsequent tenants housed in accordance with our S8 occupancy standards of number of bedrooms?

After conversion, occupancy requirements will be in accordance with the new HAP contract (either PBVs or PBRA). If your project converts to PBRA, the occupancy standards in HUD Handbook 4350.3 would be applicable. If your project converts to PBV, the occupancy standard are determine by your HCV occupancy standard.

Tenant Certification Reporting for PBV Conversions

What is the tenant certification reporting process for RAD PBV conversions? Will they be reported to HUD through the 50058 or 50059 process? Or, does it depend of the type of Project Based Voucher the development is converted to?

If the PHA converts a project to Section 8 PBVs, the PHA will continue to use HUD-50058s for the tenant certifications. (The PHA will actually terminate the 50058 for the family under the public housing program and create a new 50058 for the voucher program.) If, however, the PHA converts to PBRA, the PHA will then complete a 50059 for each family.

RAD PRAC

How does the switch to a RAD HAP Contract affect the PHA's Admissions and Continued Occupancy Policy?

A project that converts under RAD will no longer be under the public housing program. Therefore, the ACOP will not apply. The owner must establish admissions and occupancy policy consistent with the program to which the project is applying. For conversions to PBV, these policies can be found in CFR 24 Part 983. For conversions to PBRA, these policies can be found in Handbook 4350.3

Choice Mobility

Our RAD transaction will have a Choice-Mobility requirement. This question concerns residents who do not meet current screening requirements for Housing Choice Vouchers but who (because of the waiver of rescreening) will occupy PBV or PBRA units post-RAD. If one of these residents later requested a Choice-Mobility voucher, would the resident have to satisfy all current screnning requirements for the Housing Choice Voucher program, or would the waiver of re-screening continue to apply?

The waiver of re-screening applies (a) to issues that pre-date the RAD conversion (for example, a prior conviction record that would be unacceptable under one-strike) and (b) to continued occupancy at the RAD project. The waiver of re-screening would not apply to the possible future application for a Housing Choice Voucher that you describe (the resident would have to meet all HCV screening requirements in effect at the time). The waiver also does not apply to any issue that arises post-conversion (for example, a conviction that occurs after the RAD conversion).

No Re-Screening and Sex Offenders

Does no re-screening of tenants include sex offenders, is that also waived?

Yes, there is no rescreening of sex offenders based solely on the RAD conversion. However, if through the routine annual/interim recertification it is discovered the individual was erroneously admitted into public housing in violation of QHWRA, then that individual must be terminated.

ROSS Service Coordinator Grant

My PHA is the recipient of a ROSS Service Coordinator Grant and plans to submit a RAD Application. Will we be permitted to continue assisting families (who, because of the RAD conversion) will be residing in non-public housing units) after the conversion?

Yes. Section 1.5H of the Notice provides that residents who are currently participating in ROSS may continue to participate after the RAD conversion for the term of ROSS grant. Also, with the PBRA HAP, the converted properties will be eligible to apply for the Multifamily Housing Service Coordinator Grants which are available to subsidized properties. These competitive grants are offered through a Notification of Funding Availability to serve properties designated as elderly and/or disabled. [Revised 7.17.14]

No Re-Screening and Income Limits

Is the income limit waived for former public housing residents coming back to the property?

Yes, there is no re-screening of tenants.

No-Rescreening Provisions

Is it correct that there is nothing in the "no-rescreening" provisions that would prevent collection and analysis of tenant income data for purposes of determining LIHTC eligibility and for determining tenant rent payments under PBRA or PBV? Is the answer the same for both PBRA and PBV?

The prohibition against "re-screening" protects tenants against displacement. PHAs may not, for example, re-evaluate any existing tenant under the one-strike rules. The prohibition against "re-screening" does not, however, prohibit any re-determination of income that is otherwise required. If LIHTCs will be utilized in the RAD transaction, the PHA may encourage an existing tenant who is over LIHTC income limits to move from the project by offering an HCV from the PHA's own allocation. However, the PHA may not require the existing tenant to move. If the tenant wishes to remain, he or she has that right. In that case, the over-income tenant's unit would not be eligible for the LIHTC program. The preceding applies to both PBVs and PBRA.

May pre-conversion residents be permanently re-located?

Must all families resident at the property pre-conversion live there after conversion? May pre-conversion residents be permanently relocated?

No permanent involuntary displacement may occur as a result of a RAD transaction. If a resident is temporarily relocated to accommodate construction and makes a voluntary decision not to return, that does not violate RAD rules.

RAD Tenant File Retention Schedule

How long should PBV and PBRA retain the converted tenant files and tenant files in general?

Tenant files for RAD properties should be retained for three years. This applies to both PBV and PBRA properties.

Income Re-Certification at Conversion?

At the RAD conversion, when do we re-certify the families?

You should re-certify families on their next annual re-certification date.

Treatment of Over-income Tenants Following RAD PBV Conversion

How are over-income tenants treated following conversion to a RAD PBV HAP contract?

Any existing tenants at the time of RAD conversion may remain in the project, and the unit may remain under HAP, even if the tenant's Total Tenant Payment (TTP) exceeds the Gross Rent. In these instances, the tenant will pay a rent amount equal to the lesser of (a) the applicable FMR, less the utility allowances, or (b) any applicable maximum rent setting requirement the unit is subject to under another federal, state, or local program (e.g., LIHTC or HOME). For RAD PBV units, the unit is removed from the contract after 180 days of the resident paying the Zero-HAP Rent. The unit is re-instated (or substituted for partially assisted properties) if the family leaves. If the family remains and their income decreases, the PHA shall re-admit the family.

Treatment of Over-income Tenants Following RAD PBRA Conversion

How are over-income tenants treated following conversion to a RAD PBRA HAP contract?

Any existing tenants at the time of RAD conversion may remain in the project, and the unit may remain under HAP, even if the tenant's Total Tenant Payment (TTP) exceeds the Gross Rent. In these instances, the tenant will pay a rent amount equal to the lesser of (a) the applicable FMR, less the utility allowances, or (b) any applicable maximum rent setting requirement the unit is subject to under another federal, state, or local program (e.g., LIHTC or HOME). If the "lesser of test" results in a rent cap that is below the Gross Rent (which would cause the tenant to fall out of zero-HAP status), then TTP is capped at the Gross Rent for the unit.