Update. FY 2014 Appropriations Act (Notice PIH 2014 -12) FY 2015 Appropriations Act Interim Rule...
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Transcript of Update. FY 2014 Appropriations Act (Notice PIH 2014 -12) FY 2015 Appropriations Act Interim Rule...
![Page 1: Update. FY 2014 Appropriations Act (Notice PIH 2014 -12) FY 2015 Appropriations Act Interim Rule published in the Federal Regulations, October 8,](https://reader035.fdocuments.us/reader035/viewer/2022062409/5697bfa11a28abf838c9578d/html5/thumbnails/1.jpg)
Update
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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
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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
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• 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
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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
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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
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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.
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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
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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
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PHAs may request an exception flat rent by sending an e-mail to: [email protected]
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.
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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.
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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
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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
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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?
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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.
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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?
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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