Title
Resolution to Approve the FY 2019 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, including Housing Choice Vouchers (HCV), Veterans Affairs Supportive Housing Vouchers (VASH) and Project Based Vouchers (PBV). 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-required range of between 90% and 110% of the HUD 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 maximum amount of rental subsidy housing assistance a family will receive from HUD.
The Commission's jurisdiction includes two counties (Washtenaw and Monroe as well as grandfathered units in Western Wayne County). The City of Ann Arbor has its own payment standard within Washtenaw County.
Based on the attached review of proposed 2019 Fair Market Rents and HUD's 2-year tool, staff recommend that the Board set the payment standard for Wayne and Monroe Counties at 100% of the FMR. Staff recommend that the Board set the payment standard for Washtenaw County, including the City of Ann Arbor, at 110% of the FMR. Staff are recommending that the entire Washtenaw County payment standard be increased to 110% FMR, and not just the City of Ann Arbor, because over 1,000 apartments in the County that previously had rent caps through the Low-Income Housing Tax Credit program, have reached or are close to reaching the end of their required affordability period and the owners a...
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