Update

FY 2014 Appropriations Act (Notice PIH 2014 -12)

FY 2015 Appropriations Act

Interim Rule published in the Federal Regulations, October 8, 2015

Notice PIH 2015 - 13

80% of the FMR is the standard

The utility allowance is deducted from the 80% figure

35% increase limit on rents

Annual comparison to FMR required

• Allows the use of Small Area FMRs• Allows the use of unadjusted

Rents• Allows for Exception Waivers• Removes requirement for annual

study• Phase in of increases below 35%

eliminated

What are Small Area FMRs?

FMRs for Metropolitan areas (MSA) that break down FMRs based on zip codes.

Currently available as hypothetical SAFMR at http://www.huduser.gov/portal/datasets/fmr/smallarea/index.html

Walker County, AL Hypothetical Small Area FMRs By Unit Bedrooms

ZIP Code EfficiencyOne-Bedroom

Two-Bedroom

Three-Bedroom

Four-Bedroom

ZIP/CBSA Ratio

35033 $480 $550 $640 $840 $960 0.783

35062 $570 $650 $750 $980 $1,130 0.922

35063 $500 $570 $660 $860 $990 0.802

35130 $540 $610 $710 $930 $1,070 0.872

35148 $500 $570 $660 $860 $990 0.813

35501 $470 $540 $620 $810 $930 0.756

35502 $480 $550 $640 $840 $960 0.783

35503 $480 $550 $640 $840 $960 0.787

35504 $500 $570 $660 $860 $990 0.805

35546 $420 $480 $560 $730 $840 0.649

35549 $420 $480 $560 $730 $840 0.622

35550 $420 $480 $560 $730 $840 0.674

35554 $480 $540 $630 $820 $950 0.774

35578 $480 $540 $630 $820 $950 0.768

35579 $600 $680 $790 $1,030 $1,190 0.970

35580 $450 $510 $590 $770 $890 0.726

35584 $540 $620 $720 $940 $1,080 0.877

35587 $480 $550 $640 $840 $960 0.783

What are unadjusted rents?

The FMR estimated directly from the American Community Survey (ACS) source data that HUD uses to calculate FMRs before HUD applies its state non-metropolitan minimum rent policy.

What is HUD’s minimum rent policy?

To set FMRs at the higher of the local FMR or the State-wide average FMR of non-metropolitan counties, subject to a ceiling rent cap.

Note: The unadjusted rents have not been posted to HUD’s website yet

What are exception waivers?

A request from a PHA to establish flat rents at a level below the options above.

Must be approved by the secretary, Annually

Must be supported by a market analysis

PHAs may request an exception flat rent by sending an e-mail to: flatrentexceptionrequests@HUD.GOV

with the following information attached:▪ The address, including unit number(s) of the

unit or property for which the PHA is seeking an exception flat rent;▪ The market analysis; and▪ The proposed flat rent schedule.

Removes the requirement that PHAs perform an annual flat rent calculation using a rent reasonableness methodology as defined in 24 CFR Part 960.253(b)

Removes PHA discretion to implement rent increases of less than 35% over a three year period.

1. Compare current flat rent to 80% of new FMR/SAFMR/Unadjusted Rent

a) If at least 80% - no further action requiredb) If less than 80% - Update flat rent

2. Update ACOP3. Offer residents rent choice

NOTE: The flat rent amount could be different for new

admissions verses current residents

If the rent increase for an existing family will increase by more than 35%, it must be phased in over multiple years

If the increase is less than 35%, the full increase must be implemented in the current year

If a PHA’s increase was 40% in 2014 and the PHA was phasing-in the increase over three years as below: Year 1 (2014) – 15% = $15.00 Year 2 (2015) – 15% = $15.00 Year 3 (2016) – 10% = $10.00

Assuming the flat rent does not change, what will be the rent increase in 2015?

PHAs are reminded that they have the discretion, in accordance with federal law and regulations (24 CFR 960.261; FR-4824-F-02), to establish occupancy policies that include the eviction of public housing tenants who are above the income limits for eligibility to participate in public housing programs.

When must increases in flat rents due to increased FMRs be made effective?

When are new flat rents effective for existing residents already on the flat rent?

Must a PHA review flat rents annually by conducting a rent study?

What new option is available to MSA/non MSA PHAs?

Can the flat rent exceed 80% of the FMR less the utility allowance?

What is a market analysis methodology that demonstrates the value of the unit(s).

Analysis must include:▪ Location, quality, size, unit type, age of the unit, and▪ Amenities, housing services, maintenance, and

utilities the PHA will provide under the lease.

Note: HUD requires that such determinations be performed in a documented, reasonable, and consistent manner