What does Gross Rent for LIHTC consist of?

Gross Rent for the Low-Income Housing Tax Credit (LIHTC) program encompasses several components that reflect the total cost to tenants living in a LIHTC unit. This includes the contract rent, which is the specified rent amount agreed upon in the rental lease. Additionally, it accounts for utility allowances, which are estimated costs of utilities that the owner is required to consider when setting rent to ensure affordability for tenants. Non-optional fees, such as mandatory service charges that tenants must pay, are also included as they contribute to the total rental cost incurred by the tenant.

Therefore, the inclusion of these elements in Gross Rent ensures that it accurately represents the full financial burden on tenants and aligns with the regulations of the LIHTC program aimed at maintaining affordability for low-income individuals and families.