Can an income restricted property raise rent 3x during a current lease on a resident?

 

Rent is what it is for the entire lease term. Can't raise rent unless it's a lease renewal or a month to month lease. Depending on where you are it's a 30 or 60 day notice to increase also.

Not always true. LIHTC leases allow for rent to be increased during the lease term

What is a LIHTC lease?

Low Income Housing Tax Credit

Not if you are in an ad busk lease - most income restricted properties have a one year lease and then roll month to month - if that’s the case then yes

The answer to this probably is dependent on a number of factors.
Has ownership changed?
Has the property been reclassified? What state is this? Is the property a HUD subsidized site? Is the whole property subsidized or only a portion of the the community?
When was the last rate increase?
How much notice was provided?
Was a reason for the increase provided?

I’ve never heard of raising the rent in the middle of a lease term

Our Tax Credit lease says we can raise rent with a 30 day notice.

Don't know what State you are. DC, MD and VA is illegal and you'll get in serious trouble. Here all tax credit leases are considered for a year, even month to month. You also need HUD's allowed increase for the year.

TN allows increase with 60 day notice at any time.

No. Not during the current lease period..

If it’s income based and that residents income changed and that person was required to do an interim, then yes.

For those saying no, that might be true on conventional. But it can be changed if it’s a tax credit property and the person failed to report their new income. EIVs get pulled and the resident gets busted not reporting their higher income, it gets refactored and they are responsible for the new payment and repayment of whatever they should have owed had they reported it properly. We had people busted who owed from the entire previous year because they didn’t report the sons wages in the household.

This is not a yes or no question. Lots of factors to consider

Depends on the state you reside in and the lease verbiage.

As long as the contract rent remains the same. If it's a subsadized like section 8, the portion of that rent can change depending on the income of the household. If their income increases, their portion will, and the subsadized portion will decrease

No not during a lease term....but if MTM a 30day notice of rent change is all that is needed and it can be sent at anytime

If your income changes, hoh members decrease, gross rent (utility subsidy changes) there are all kinds of reasons. So, YES..it could happen!