Title
Resolution to Approve the Amended FY25 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 Housing Choice Vouchers (HCV) including special purpose voucher programs. 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-basic range. HUD Notice PIH 2032-32 <https://www.hud.gov/sites/dfiles/PIH/documents/PIH2023-32.pdf> mandates the use of Small Area Fair Market Rents (SAFMRs) in metropolitan areas designated by HUD, which includes Wayne County. For all other areas the use of SAFMRs is optional to PHAs including those with MTW designation. As a MTW agency AAHC may set its payment standards between the range of 80% and 120% of the HUD FMRs, or As a MTW agency AAHC may set its payment standards between the range of 80% and 150% of the HUD SAFMRs, according to the Moving to Work Operations Notice Part Six <https://www.hud.gov/sites/dfiles/PIH/documents/FinalMTWExOpsNoticePartVIWeb.pdf>.
PHAs may choose to establish separate payment standards <https://www.hud.gov/sites/dfiles/PIH/documents/HCV_Guidebook_Payment_Standards_November_2020.pdf> for each ZIP code area. In lieu of establishing a unique payment standard schedule for each ZIP code area within its jurisdiction, a PHA may wish to establish payment standard schedules for “grouped” ZIP code areas. Adopting groups and establishing one payment standard for all program types, helps to minimize the administrative burden of managing multiple payment standard areas.
Staff recommend implementing the same payment standard for Washtenaw County, Wayne County, and Monroe County for the Housing Choice Voucher programs including: 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. In addition, staff recommends establishing a separate payment standard for Ann Arbor, specifically 48103, 48104, and 48105.
...Staff
Prepared by: Weneshia Brand, Deputy Director
Approved by: Jennifer Hall, Executive Director
Body
WHEREAS, the Department of Housing & Urban Development (HUD) annually establishes and publishes Fair Market Rents (FMRs) and Small Area Fair Market Rent (SAFMR) by locale; and
WHEREAS, the 2025 FMRs and SAFMRs will take effect on October 1, 2024; and
WHEREAS, HUD requires the revised payment standards to be established within 90 days of HUD published FMRs or SAFMRs; and
WHEREAS, the AAHC Board last adopted a payment standard of 120% of FMR and 110% of the SAFMR effective December 1, 2023; and
NOW THEREFORE BE IT RESOLVED, that the Ann Arbor Housing Commission Board approves a payment standard within the basic range of the FMR and SAFMRs for HCV, VASH, EHV, FUP, MS5, and PBV programs to take effect January 1, 2025, for all other applicable certifications in accordance with the Ann Arbor Housing Commission’s Administrative Plan.