Title
Resolution to Approve the Amended FY26 Payment Standard for the Ann Arbor Housing Commission Voucher Programs
Memorandum
The Ann Arbor Housing Commission received official notification from the HUD Shortfall Prevention Team (SPT) on June 25, 2026, that AAHC is projecting a HAP shortfall in the Housing Choice Voucher (HCV) for Calendar Year (CY) 2026. HUD has designated the AAHC as meeting the criteria for Group 2. A shortfall occurs when the PHA’s Total Funding Available is insufficient to support the projected HAP expenses at calendar year end in December 2026.
In response to the HUD notification the AAHC must initiate several required actions as outlined in PIH 2026-12 for Group 2 to be eligible for shortfall funding. The required actions are included in the funding notice, which include, but not limited to; immediately cease the use of any exception payment standards and MTW payment standards above the basic range, including the use of exception payment standard Small Area Fair Market Rents. This does not apply to reasonable accommodation exception payment standards or exception payment standards for the HUD-VASH program. The AAHC must Immediately establish payment standards between 90-110% of the FMR for new admission, movers, and current participants who are not moving at their second annual reexamination.
...Staff
Prepared by: Weneshia Brand, Deputy Director
Approved by: Jennifer Hall, Executive Director
Body
WHEREAS, on June 25, 2026, AAHC received instructions from HUD to immediately implement cost saving measures to prevent shortfall, and
WHEREAS, in the notice, HUD has designated AAHC as meeting the criteria for Group 2; and
WHEREAS, AAHC must initiate several required actions as outlined in PIH 2026-12 as outlined for Group 2 to be eligible for shortfall funding; and
WHEREAS, HUD requires PHAs in Group 2 to cease the use of payment standards established using the Small Area Fair Market Rent (SAFMRs) to prevent shortfall despite previous HUD requirements to adopt SAFMR’s; and
WHEREAS, the AAHC Board last adopted a payment standard between 80% and 150% of the SAFMR effective January 1, 2026; and
WHEREAS, HUD requires the PHA to immediately establish payments standards within the HUD basic range of 90-110% of the FMR, and
WHEREAS, staff recommend setting the payment standard to 110% of the 2025 FMRs for Washtenaw County; and
WHEREAS, staff recommend maintaining the Payment Standards for Monroe, and Wayne counties, which are currently set at 105% of the FMR and
NOW THEREFORE BE IT RESOLVED, that the Ann Arbor Housing Commission Board approves a payment standard within the basic range of the FMR for HCV, VASH, EHV, FUP, MS5, and PBV programs to take effect August 1, 2026, for all other applicable certifications in accordance with the Ann Arbor Housing Commission’s Administrative Plan as described in the attached tables.