Notice2022-11238
Section 8 Housing Assistance Payments Program-Fiscal Year (FY) 2022 Inflation Factors for Public Housing Agency (PHA) Renewal Funding
Primary source
Metadata and text below are from the Federal Register, a public-domain U.S. government work. Always verify the official published version before relying on it for any legal matter.
Published
May 25, 2022
Issuing agencies
Housing and Urban Development Department
Abstract
This notice establishes Renewal Funding Inflation Factors (RFIFs) to adjust Fiscal Year (FY) 2022 renewal funding for the Housing Choice Voucher (HCV) Program of each public housing agency (PHA), as required by the Consolidated Appropriations Act, 2022. The notice apportions the expected percent change in national Per Unit Cost (PUC) for the HCV program, 4.68 percent, to each PHA based on the change in Fair Market Rents (FMRs) for their operating area to produce the FY 2022 RFIFs. HUD's FY 2022 methodology is the same as that which was used in FY 2021.
Full Text
<html>
<head>
<title>Federal Register, Volume 87 Issue 101 (Wednesday, May 25, 2022)</title>
</head>
<body><pre>
[Federal Register Volume 87, Number 101 (Wednesday, May 25, 2022)]
[Notices]
[Pages 31897-31898]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2022-11238]
=======================================================================
-----------------------------------------------------------------------
DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
[Docket No. FR-6329-N-01]
Section 8 Housing Assistance Payments Program--Fiscal Year (FY)
2022 Inflation Factors for Public Housing Agency (PHA) Renewal Funding
AGENCY: Office of the Assistant Secretary for Policy Development and
Research, HUD.
ACTION: Notice.
-----------------------------------------------------------------------
SUMMARY: This notice establishes Renewal Funding Inflation Factors
(RFIFs) to adjust Fiscal Year (FY) 2022 renewal funding for the Housing
Choice Voucher (HCV) Program of each public housing agency (PHA), as
required by the Consolidated Appropriations Act, 2022. The notice
apportions the expected percent change in national Per Unit Cost (PUC)
for the HCV program, 4.68 percent, to each PHA based on the change in
Fair Market Rents (FMRs) for their operating area to produce the FY
2022 RFIFs. HUD's FY 2022 methodology is the same as that which was
used in FY 2021.
DATES: Applicability date: May 25, 2022.
FOR FURTHER INFORMATION CONTACT: Miguel A. Fontanez, Director, Housing
Voucher Financial Division, Office of Public Housing and Voucher
Programs, Office of Public and Indian Housing, telephone number 202-
402-4212; or Adam Bibler, Program Parameters and Research Division,
Office of Policy Development and Research, telephone number 202-402-
6057, for technical information regarding the development of the
schedules for specific areas or the methods used for calculating the
inflation factors. Their mailing address is Department of Housing and
Urban Development, 451 7th Street SW, Washington, DC 20410. Hearing- or
speech-impaired persons may contact the toll-free Federal Relay Service
at 800-877-8339 (TTY). (Other than the ``800'' TTY number, the above-
listed telephone numbers are not toll free.)
SUPPLEMENTARY INFORMATION:
I. Background
Division L, Title II of the Consolidated Appropriations Act, 2022
requires that
[[Page 31898]]
the HUD Secretary, for the 2022 calendar year funding cycle, provide
renewal funding for each public housing agency (PHA) based on validated
voucher management system (VMS) leasing and cost data for the prior
calendar year and by applying an inflation factor as established by the
Secretary, by notice published in the Federal Register. This notice
announces the FY 2022 inflation factors and describes the methodology
for calculating them. Tables in PDF and Microsoft Excel formats showing
RFIFs by HUD Fair Market Rent Area are available electronically from
the HUD data information page at: <a href="https://www.huduser.gov/portal/datasets/rfif/rfif.html">https://www.huduser.gov/portal/datasets/rfif/rfif.html</a>.
II. Methodology
RFIFs are used to adjust the allocation of Housing Choice Voucher
(HCV) program renewal funds to PHAs for local changes in rents, utility
costs, and tenant incomes. To calculate the RFIFs, HUD first forecasts
a national inflation factor, which is the annual change in the national
average PUC. HUD then calculates individual area inflation factors,
which are based on the annual changes in the two-bedroom Fair Market
Rent (FMR) for each area. Finally, HUD adjusts the individual area
inflation factors to be consistent with the national inflation factor.
HUD's forecast of the national average PUC is based on forecasts of
gross rent and tenant income. Each forecast is produced using
historical and forecasted macroeconomic data as independent variables,
where the forecasts are consistent with the Economic Assumptions of the
Administration's FY 2022 Budget. The forecast of gross rent is itself
based on forecasts of the Consumer Price Index (CPI) Rent of Primary
Residence Index and the CPI Fuels and Utilities Index. Forecasted
values of these series are applied to the FY 2022 national average two-
bedroom FMR to produce a CY 2022 value. A ``notional'' PUC is
calculated as the difference between gross rent value and 30 percent of
family income (the standard for family rent contribution in the voucher
program). The change between the forecasted CY 2022 notional PUC and
the CY 2021 notional PUC is the expected national change in PUC, or
5.80 percent. HUD uses a notional PUC as opposed to the actual PUC to
project costs that are consistent with PHAs leasing the same number and
quality of units. For more information on HUD's forecast methodology,
see 82 FR 26710.
The inflation factor for an individual geographic area is based on
the annualized change in the area's FMR between FY 2021 and FY 2022.
These changes in FMRs are then scaled such that the voucher-weighted
average of all individual area inflation factors is equal to the
national inflation factor, i.e., the expected annual change in national
PUC from CY 2021 to CY 2022, and such that no area has a factor less
than one. For PHAs operating in multiple FMR areas, HUD calculates a
voucher-weighted average inflation factor based on the count of
vouchers in each FMR area administered by the PHA as captured in HUD
administrative data as of December 31, 2021.
III. The Use of Inflation Factors
HUD subsequently applies the calculated individual area inflation
factors to eligible renewal funding for each PHA based on VMS leasing
and cost data for the prior calendar year.
IV. Geographic Areas and Area Definitions
As explained above, inflation factors based on area FMR changes are
produced for all FMR areas and applied to eligible renewal funding for
each PHA. The tables showing the RFIFs, available electronically from
the HUD data information page, list the inflation factors for each FMR
area on a state-by-state basis. The inflation factors use the same OMB
metropolitan area definitions, as revised by HUD, that are used in the
FY 2022 FMRs. PHAs should refer to the Area Definitions Table on the
following web page to make certain that they are referencing the
correct inflation factors: <a href="http://www.huduser.org/portal/datasets/rfif/FY2022/FY2022_RFIF_FMR_AREA_REPORT.pdf">http://www.huduser.org/portal/datasets/rfif/FY2022/FY2022_RFIF_FMR_AREA_REPORT.pdf</a>. The Area Definitions Table
lists areas in alphabetical order by state, and the counties associated
with each area. In the six New England states, the listings are for
counties or parts of counties as defined by towns or cities. HUD is
also releasing the data in Microsoft Excel format to assist users who
may wish to use these data in other calculations. The Excel file is
available at <a href="https://www.huduser.gov/portal/datasets/rfif/rfif.html">https://www.huduser.gov/portal/datasets/rfif/rfif.html</a>.
Note that, as described earlier, the actual renewal funding inflation
factor applied to agency funding will be the voucher-weighted average
of the FMR area factors when the PHA operates in multiple areas.
V. Environmental Impact
This notice involves a statutorily required establishment of a rate
or cost determination which does not constitute a development decision
affecting the physical condition of specific project areas or building
sites. Accordingly, under 24 CFR 50.19(c)(6), this notice is
categorically excluded from environmental review under the National
Environmental Policy Act of 1969 (42 U.S.C. 4321).
Todd Richardson,
General Deputy Assistant Secretary for Policy Development and Research.
[FR Doc. 2022-11238 Filed 5-24-22; 8:45 am]
BILLING CODE 4210-67-P
</pre></body>
</html>Indexed from Federal Register on May 25, 2022.
This is legal information, not legal advice. Laws vary by jurisdiction and change frequently. Always verify current law with official sources and consult a licensed attorney in your jurisdiction for advice on your specific situation.