For the past couple months officials with the Knox County Housing Authority have been working to get things ready for the flat rate increase.
The new mandate states those who chose to pay the flat rate rent will see an increase in their rent based on 80 percent of fair market price.
Officials were ready for the new rates to kick in starting the first of June, however according to Knox County Housing Authority Executive Director Derek Antoine that deadline has been pushed back to October 31-st.
However he tells WGIL because of the way Federal Fair Market Rates Work, they’re able to give their residents a small break on the rate increase.
“We’ll be able to make a deduction to setting our flat rents on the basis of resident paid utilities, so Federal Fair Market Rates, or FFMR’s are, there’s an element of utility allowance added into that so if were to charge that as a FMR on top of the residents paying their utilities they’d almost be like they’d be paying their utilities twice.”
Antoine says if someone has currently renewed their flat rent lease they have three years before they’ll see an increase in their rate.
However, if their lease is up or they are new tenants they are subject to the new Department of Housing and Urban Development rules regarding Flat rate rent.