---
kind: "range"
citation: "24 C.F.R. §§ 245.305–245.320"
title: "24"
from: "245.305"
to: "245.320"
count: 4
url: "https://uscodex.org/cfr/24/245.305..245.320"
---

# §245.305. Applicability of subpart.

- (a) The requirements of this subpart apply to any request by a mortgagor, as provided by [§ 245.10](/cfr/24/245.10.md), for HUD approval of an increase in maximum permissible rents.
- (b) For purposes of this subpart, an increase in utility charges paid directly by the tenant does not constitute an increase in rents.

# §245.310. Notice to tenants.

- (a) At least 30 days before submitting a request to HUD for approval of an increase in maximum permissible rents, the mortgagor must notify the tenants of the proposed rent increase. Copies of the notice must be served on the tenants as provided in [§ 245.15](/cfr/24/245.15.md). The notice must contain the following information in the following format or an equivalent format:
- (b) The mortgagor must comply with all representations made in the notice. The materials to be made available to tenants for inspection and copying are those specified in [§ 245.315](/cfr/24/245.315.md).

# §245.315. Materials to be submitted to HUD.


When the notice referred to in [§ 245.310](/cfr/24/245.310.md) is served on the tenants, the mortgagor must send to the local HUD office copies of the following documents described in either paragraph [(a)](#a) or [(b)](#b) of this section, as specified by the local HUD office:

- (a) **Documents to be submitted under profit and loss approach—**
  - (1) A copy of the notice to tenants;
  - (2) An annual Statement of Profit and Loss, Form HUD-92410, covering the project's most recently ended accounting year (this statement must have been audited by an independent public accountant if the project is required by HUD to prepare audited financial statements), and Form HUD-92410 for the intervening period since the date of the last annual statement if more than four months have elapsed since that date;
  - (3) A narrative statement of the reasons for the requested increase in maximum permissible rents; and
  - (4) An estimate of the reasonably anticipated increases in project operating costs that will occur within twelve months of the date of submission of materials under this section.
  - (5) **A status report on the project's implementation of its current Energy Conservation Plan.**
- (b) **Documents to be submitted under the forward-budget approach—**
  - (1) A cover letter summarizing the reasons a rent increase is needed;
  - (2) A copy of the notice to tenants;
  - (3) A rent increase worksheet providing an income and expense budget for the 12 months following the anticipated effective date of the proposed rent increase;
  - (4) A brief statement explaining the basis for the expense lines on the rent increase worksheet;
  - (5) A partially completed Rent Schedule, Form HUD-92458;
  - (6) If the tenants receive utility allowances, the mortgagor's recommended utility allowance for each unit type and brief statement explaining the basis for the recommended increase; and
  - (7) **A status report on the project's implementation of its current Energy Conservation Plan.**

# §245.320. Request for increase.


Upon expiration of the period for tenant comments required in the notice format in [§ 245.310](/cfr/24/245.310.md) and after review of the comments submitted to the mortgagor, the mortgagor must submit to the local HUD office, in addition to the materials enumerated in [§ 245.315](/cfr/24/245.315.md) and any revisions thereto, the request for an increase in the maximum permissible rents, together with the following:

- (a) Copies of all written comments submitted by the tenants to the mortgagor;
- (b) The mortgagor's evaluation of the tenants' comments with respect to the request;
- (c) **A certification by the mortgagor that—**
  - (1) It has complied with all of the requirements of this subpart;
  - (2) The copies of the materials submitted in support of the proposed increase were located in a place reasonably convenient to tenants in the project during normal business hours and that requests by tenants to inspect the materials, as provided for in the notice, were honored;
  - (3) All comments received from tenants were considered by the mortgagor in making its evaluation; and
  - (4) Under the penalties and provisions of [title 18](/cfr/18.md) U.S.C., [section 1001](/cfr/24/1001.md), the statements contained in this request and its attachments have been examined by me and, to the best of my knowledge and belief, are true, correct, and complete.