The change enables tenants and landlords to find out the maximum amount of LHA available before an agreement is reached.
BBC: Woman given ?12k a month for home
She has refused to take on any more LHA tenants unless their rent gets paid directly to her by the council.
BBC: Benefit tenants 'rip off' landlords
LHA-ASRA hopes to start work on the building project in October 2012.
BBC: The Abbey Mills building (Photo: rg+p)
Housing association LHA-ASRA had hoped to convert the building into flats but said it was no longer viable in the current financial climate.
From Monday the DWP will introduce a cap on LHA, to stop families on benefits being housed in properties with more than six bedrooms.
BBC: Landlords warn of homeless rise
"We believe that urgent changes are needed to the LHA and in particular for the publication of maximum rent levels to be ended, " said Mr Brooks.
In April, the government introduced the Local Housing Allowance (LHA) which established national rules about what type of accommodation is appropriate and how much rent can be paid to landlords.
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