Title
Resolution to Approve the Amended FY24 Payment Standard for the Ann Arbor Housing Commission Voucher Programs
Memorandum
The Department of Housing and Urban Development (HUD) annually sets Fair Market Rents (FMRs), to assist with determining reasonable rents and payment standards in the Section 8 programs, including Housing Choice Vouchers (HCV), Veterans Affairs Supportive Housing Vouchers (VASH), Emergency Housing Voucher (EHV), Family Unification Voucher (FUP) and Project Based Vouchers (PBV) as well as Mainstream (Section 811) Vouchers. FMRs are gross rent estimates representing rent and utility costs in private sector rental housing, pegged at approximately the 40th percentile, not including new construction in the past 2 years and not including subsidized housing.
The AAHC must review its payment standards schedule annually and amend it as needed to ensure that the payment standards remain within the HUD-required range of between 80% and 120% of the HUD FMRs, according to the Moving to Work Operations Notice Part Six. In addition, AAHC implemented the Small Area Fair Market Rent (SAFMR) in March 2023. According to the Moving to Work Operations Notice Part Six, the payment standard for designated areas must be between 80% and 150% of the SAFMR.
Staff recommend amending the payment standard for HCV, VASH, EHV, FUP, MS5, and PBV at 120% of the FMR effective date to December 1, 2023. Staff also recommend setting the payment for 48103, 48104, 48105, and 48109 at 110% of the SAFMR to allow for greater housing opportunities to voucher holders. This change would allow our payment standard to align with the current housing market.
...Staff
Prepared by: Misty Hendershot, Voucher Program Manager
Approved by: Weneshia Brand, Deputy Director
Body
WHEREAS, the Department of Housing & Urban Development (HUD) annually establishes and publishes Fair Market Rents (FMRs) by locale; and
WHEREAS, HUD requires the revised payment standards to be adopted by the Ann Arbor Housing Commission (AAHC) within 90 days of HUD published FMRs, and
WHEREAS, the AAHC Board last adopted a payment standard of 120% of FMR effective January 1, 2023, and the payment standard of 100% of SAFMR for designated area effective March 2023; and
NOW THEREFORE BE IT RESOLVED, that the Ann Arbor Housing Commission Board approves a payment standard of 120% of Fair Market Rent (FMR) for Washtenaw County, Wayne County, and Monroe County for the Section 8 programs including: Housing Choice Vouchers (HCV), Veterans Affairs Supportive Housing Vouchers (VASH), Emergency Housing Voucher (EHV), Family Unification Voucher (FUP) and Project Based Vouchers (PBV) as well as Mainstream (Section 811) Vouchers and 110% of the Small Area Fair Market Rent for designated areas to take effect December 1, 2023, for all other applicable certifications in accordance with the Ann Arbor Housing Commission’s Administrative Plan.