Title
Resolution to Amend the Administrative Plan Regarding Chapter 16: Setting Program Standards and Schedules: Part II B Payment Standards.
Memorandum
The Ann Arbor Housing Commission's Housing Choice Voucher Administrative Plan details its policies and procedures for the management of its Housing Choice Voucher (HCV) Program. The AAHC periodically revises the Plan to reflect changes in HUD regulations and changes in AAHC policies.
Staff recommend adding language to the Administrative Plan Chapter 16: Setting Program Standards and Scheduled: Part II B. Payment Standards Special to include the voluntary use of the HUD determined small area FMRs (SAFMRs) for one or more zip code areas. In addition, staff recommend that the PHA adopt the use of SAFMRs for 48103, 48104, 48105, and 48109 at 100% of the SAFMRs for the tenant-based and project-based voucher program. Staff request Board approval of these recommended changes.
Current PHA Policy
Exception Payment Standards [982.503(c)]
The PHA must request HUD approval to establish payment standards that are higher than the basic range. At HUD’s sole discretion, HUD may approve a payment standard amount that is higher than the basic range for a designated part of the FMR area. HUD may approve an exception payment standard amount (in accordance with program requirements) for all units, or for all units of a given size, leased by program families in the exception area. Any PHA with jurisdiction in the exception area may use the HUD-approved exception payment standard amount. The total population of all HUD-approved exception areas in an FMR area may not include more than 50 percent of the population of the FMR area.
Proposed PHA Policy
Voluntary Use of Small Area FMRs [24 CFR 982.503, Notice PIH 2018-01]
PHAs that administer vouchers in a metropolitan area where the adoption of small area FMRs (SAFMRs) is not required may request approval from HUD to voluntarily adopt SAFMRs. SAFMRs may be voluntarily adopted for one or more zip code areas.
PHA Policy
The PHA will voluntarily adopt the use of SAFMRs. The PHA will utilize the SAFMRs for both the tenant-based voucher program and the project-based voucher program for the following zip codes: 48103, 48104, 48105, and 48109. The PHA will use the metropolitan wide FMRs for all other jurisdiction covered by the PHA. The PHA will implement use of the SAFMRs no later than July 1, 2024.
Decreases in Payment Standard: Where the payment standard is decreasing due to the new SAFMRs, the PHA will hold the families harmless as long as they continue to live in the same assisted unit. That means that families who were in place will not experience a decrease in payment standard for two years and will be changed at the third recertification contingent upon funding and regulations.
Increase in Payment Standard: Where the payment standard is increasing due to the new SAFMRs, the PHA will implement the change at the next annual recertification. The PHA may apply the increased payment standard at any time the family rent burden estimate exceeds 40% of adjusted monthly income.
Ann Arbor, MI MSA Advisory Small Area FMRs By Unit Bedrooms
Zip Code Efficiency 1-Bdr 2-Bdr 3-Bdr 4 -Bdr
48103 $1,380 $1,390 $1,670 $2,030 $2,320
48104 $1,380 $1,390 $1,670 $2,030 $2,320
48105 $1,360 $1,370 $1,640 $2,000 $2,280
48109 $1,370 $1,380 $1,660 $2,020 $2,300
Staff
Prepared by: Weneshia Brand, Deputy Director
Reviewed and Approved by: Jennifer Hall, Executive Director
Body
WHEREAS, the Ann Arbor Housing Commission's Housing Choice Voucher Administrative Plan details its policies and procedures for the management of its Housing Choice Voucher (HCV) Program; and
WHEREAS, currently, the Administrative Plan does not include language for voluntary use the HUD established Small Area FMRs (SAFMRs); and
WHEREAS, staff recommend adding language to the administrative plan to clarify the voluntary use of SAFMRs; and
WHEREAS, staff recommend adopting the use of SAFMRs for both the tenant-based and project based voucher program specifically for 48103, 48104, 48105, and 48109 zip code areas.
RESOLVED, that the Board of the Ann Arbor Housing Commission approve the amended language related as described in the memorandum above, to the Administrative Plan to take effect as of February 22, 2023.