Title
Resolution to Approve the Amended FY27 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. 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.
PHAs may choose to establish separate payment standards 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.
The FMR for Washtenaw County increased by about 6–8% across all bedroom sizes compared to last year. Even with this increase, our current payment standards remain higher than HUD’s proposed FMR. Keeping the existing payment standards places them at about 101–103% of the FMR, which is within HUD’s allowable range.
In Monroe County, the FMR decreased by 1–2% for 0–3 bedroom units and increased slightly (less than 1%) for 4–9 bedroom units. Our current payment standards are still higher than HUD’s proposed FMR. Maintaining...
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