Sec. 2800.5. Rental assistance payments

(a) For each unit with respect to which rental assistance is provided, the amount of such assistance for each month, or other rental payment period, shall be the difference between the project rent established pursuant to subdivision (b) of this section and the tenant rent payment established pursuant to subdivision (c) of this section.

(b)

(1) The initial project rent shall be set by FmHA in accordance with title V and its regulations and procedures.

(2) Applications for adjustment in project rents shall be submitted to and processed by FmHA in accordance with exhibit C to subpart C of part 1930 of title 7 CFR, or other applicable Federal regulation. The project rent shall be deemed adjusted upon transmittal to the division by FmHA of a copy of its letter of approval to the sponsor setting new rents.

(c) The tenant rent payment shall be an amount equal to the applicable percentage of income, as prescribed by section 521 of title V and exhibit C to subpart E of part 1944 of title 7 CFR, or other applicable Federal rental assistance regulations.

(d) Every rental assistance contract shall specify the aggregate maximum amount of assistance over the term of such contract and shall provide that upon payment of such amount, the contract shall terminate.