Title
Resolution to Approve the FY 2016 Payment Standard for the Ann Arbor Housing Commission Voucher Program
Memorandum
The Department of Housing and Urban Development (HUD) annually sets Fair Market Rents (FMRs), for determining eligibility of rental costs in Section 8 programs. FMRs are gross rent estimates representing rent and utility costs in private sector rental housing, pegged at approximately the 40th percentile. 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 (between 90% and 110% of the approved FMRs). A payment standard, in general terms, is the amount generally needed to rent a moderately-priced dwelling unit in the local housing market and that is used to calculate the amount of housing assistance a family will receive.
The Commission's jurisdiction includes two counties (Washtenaw and Monroe) and the City of Ann Arbor has its own payment standard within Washtenaw County. Western Wayne County is no longer in the Commission's jurisdiction but the folks that live there are grandfathered in until they move, so the payment standard includes Western Wayne as well.
Based on the attached review of proposed 2016 Fair Market Rents, it is recommended to set the payment standard for Washtenaw County and Wayne County stay the same for 2016 as 2015 because they are still within the 90%-100% range. It is recommended that the payment standard for Monroe County be updated so that it is at 100% of the FMR because some of the unit sizes would be out of the 90% - 110% range if they were not updated. It is recommended that the Ann Arbor payment standard increase so that it is at the maximum of 110% of the FMR because housing costs are much higher in the City of Ann Arbor. Please see the attached chart.
...Staff
Prepared by: Weneshia Brand, Voucher Program Manager
Approved by: Jennifer Hall, Executive Director
Body
WHEREAS, the Depa...
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