---
kind: "section"
citation: "7 C.F.R. § 3560.203"
title: "7"
number: "3560.203"
heading: "Tenant contributions."
url: "https://uscodex.org/cfr/7/3560.203"
---

# §3560.203. Tenant contributions.

- (a) **Tenant contributions.** A tenant's contribution to rent charged for a rental unit in an Agency financed housing project is based on the tenant's income, as calculated on the Agency's tenant certification forms, and the availability of Agency or non-Agency rental subsidies.
  - (1) **Tenant contributions.** Borrowers must set tenant contributions to rent at the highest of the following standards but never more than the note rent:
    - (i) Thirty percent of monthly adjusted income;
    - (ii) Ten percent of gross monthly income;
    - (iii) An amount equal to the portion of an assistance payment specifically designated to meet the household's shelter costs if the household is receiving assistance payments from a public agency; or
    - (iv) **The basic rent, unless RHS rental assistance is provided to the household.**
  - (2) **Tenant contribution surcharge.** Tenants in a Plan I housing project with incomes above the eligibility standards set in [§ 3560.152(a)(1)](/cfr/7/3560.152.md?p=a-1) must pay a 25 percent surcharge in addition to note rent.
- (b) **Adjustment of tenant contribution.** Borrowers must adjust the tenant contribution whenever there is a change in tenant household status or income sufficient to generate a revised tenant certification in accordance with [§ 3560.152(e)](/cfr/7/3560.152.md?p=e) or an Agency approved rent or utility allowance change that affects the tenant contribution amount.
- (c) **Overage.** If a tenant's tenant contribution is higher than basic rent, borrowers must remit to the Agency the rent collected in excess of the basic rent and up to the note rent.

## Notes

### Authority

Authority: 42 U.S.C. 1480.

### Source

Source: 69 FR 69106, Nov. 26, 2004, unless otherwise noted.