Rent Setting methodology

When a Francis Home program participant is participating in a partner offered housing program and receiving program funding towards the payment of rent, rent shall be set at 95% of the prevailing Fair Market Rent as determined by HUD . Utility payments will be the responsibility of the tenant.

When a Francis Home program participant is independently responsible for rental payment, rent shall be set at 95%-70% of Fair Market Rent as determined by HUD. Utility payments will be the responsibility of the tenant.

Independent Pay Participants Rent Setting Justification

Shelter Development must weigh property tax exemption obligations, program financial viability and tenant financial wellbeing in setting independent pay participant rent calculation.

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It would be counterproductive to the Shelter Development mission to develop housing programming that places participants in a “rent burden” position where there is a high likelihood they will struggle to meet other basic needs expenses. 

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Whereas Shelter Development property tax exempt status mandates tenants be Low/ Very Low income and whereas Shelter does not wish to place Rent burden upon participants AND whereas Francis Homes must be structured for financial viability for the organization, the following rent setting methodology is recommended. 

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Tenants entering into a lease agreement, without rent subsidy from a partner program must:

a.) Fall within the 80%-61% CMI category and will pay 95% Fair Market Rent.

b.) Fall Within the 60%-50% CMI category and will pay 70% Fair Market Rent.

c.) It is not financially feasible for Shelter Development to serve households below 50% CMI, independent of a subsidizing partner agency.