Formula and Matching Requirements: HUD makes monthly payments to project owners to make up the difference between the partial rentals paid by assisted tenants and the market rental. Assisted tenants must pay between 25 and 30 percent of their adjusted monthly income (after certain deductions) or 30 percent of the market rent, which-ever is greater. This program has 311 maintenance of effort (MOE) requirements, see funding agency for further details. Statistical factors used for fund allocation do not apply for this program. The statistical factor used for eligibility is 80 percent of the median family income by HUD field office region, the source calculated by HUD from P-25, Census; 1990 Census; County Business Patterns; P-60, Census; and the Annual Housing Survey. Length and Time Phasing of Assistance: The rent supplement contract is limited to the term of the mortgage or 40 years from the date of the first payment made under the contract, whichever is less. Individual family's assistance ceases when 30 percent of income is equal to or exceeds the market rent. POST ASSISTANCE REQUIREMENTS: Reports: Any change of the mortgagor during the period of mortgage insurance must be approved by HUD. Defaults in meeting the mortgage terms must be reported. All mortgagors of HUD- insured projects are required to submit an annual financial statement to HUD. Audits: The Department of Housing and Urban Development reserves the
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