HUD HCV Guidebook § 2.3

The payment standard for SRO housing is 75 percent of the PHA’s 0-bedroom payment standard
amount, or the HUD-approved area exception payment standard amount, on the PHA’s payment
standard schedule. The Housing Assistance Payment (HAP) for an assisted occupant in an SRO facility
is the lower of the SRO payment standard amount minus the Total Tenant Payment (TTP) or the gross
rent for the unit minus the TTP. Example 1 shows how to calculate the payment standard for a sample
SRO unit. Example 2 shows how to calculate the HAP for the same sample unit.

                Example 1: Calculating Payment Standards for an SRO Unit
                 The payment standard is 75% of the PHA’s 0-bedroom payment
                 standard amount, or HUD-approved exception payment standard
                 amount (listed on the PHA’s payment standard schedule.
                 PHA 0-bedroom payment standard (listed on $500
                 PHA’s payment standard schedule)
                      SRO payment standard to be used           $500 X .75 = $375

7 24 CFR § 982.605(b)(2)(ii)(D)
8 24 CFR § 982.605(b)(3)(i)
9 24 CFR § 982.605(b)(3)(iii)
10 24 CFR § 982.605(b)(3)(ii)
11 24 CFR § 982.605(b)(4)
12 24 CFR § 982.605(b)(4)

Example 2: Determining HAP for an SRO Unit
                 Total tenant payment                       $205
                 SRO payment standard                       $375
                 Gross rent                                 $315
                                   HAP is the lower of

                 SRO payment standard ($375) minus          TTP ($110) = $170

                 Gross rent ($315)                minus     TTP ($205) = 110
                                 HAP                               $110