HUD HCV Guidebook § 3.3

The payment standard for an individual unit in a congregate housing facility is based on the number of
bedrooms in the private living area for the assisted family. If there is only one bedroom in the unit (not
including the bathroom or the kitchen, if a kitchen is provided), the PHA’s payment standard for a 0-
bedroom unit, or HUD-approved exception area payment standard, is used. If the unit has two or more
bedrooms (other than the bathroom and the kitchen), the PHA should use the PHA’s 1-bedroom
payment standard, or HUD-approved area exception payment standard. Note that a PHA-approved live-
in aide must be counted when determining the family unit size.

The HAP for an assisted occupant in a congregate housing facility is the lower of the applicable payment
standard minus the TTP or the gross rent for the unit minus the TTP.

Example 3 shows how to calculate the payment standard for a sample congregate housing unit.
Example 4 shows how to calculate the HAP for the same sample unit.

       Example 3: Calculating Payment Standards for a Congregate Housing Unit
         Number of bedrooms in living area for assisted           1
         household
         PHA’s 0-bedroom payment standard amount or the           $500
         HUD-approved exception payment standard amount
         (listed on the PHA’s payment standard schedule)
         Congregate housing payment standard to be used           $500

       Example 4: Calculating HAP for a Congregate Housing Unit
         Total tenant payment                                      $265
         Congregate housing payment standard                       $500
         Gross rent                                                $425
                                       HAP is the lower of

         Congregate housing payment standard ($500) minus          TTP ($265) = $235

         Gross rent ($425)                                minus    TTP ($265) = $160

                                  HAP                                     $160

HCV program assistance should be calculated on the shelter portion (including utilities) of the resident’s
monthly housing expense only. The residents’ costs for food service should not be included in the rent
for a congregate housing unit.