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File #: 19-1793    Version: 1 Name: AAHC FY20 Payment Standard
Type: Resolution Status: Filed
File created: 9/15/2019 In control: Housing Commission
On agenda: 9/18/2019 Final action: 9/18/2019
Enactment date: Enactment #:
Title: Resolution to Approve the FY20 Payment Standard for the Ann Arbor Housing Commission Voucher Program
Title

Resolution to Approve the FY20 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. The FMR, in general terms, is the amount needed to rent a moderately-priced dwelling unit in the local housing market and the payment standard is used to calculate the maximum amount of rental subsidy housing assistance a family will receive from HUD for a moderately-priced dwelling unit.

The Commission's jurisdiction includes two counties, Washtenaw and Monroe. The AAHC removed Wayne County from its jurisdiction in 2015; however, AAHC has nine (9) participants that are grandfathered into this jurisdiction. Over 90% of voucher holders reside in Washtenaw County. Most residents reside in 1-4-bedroom units; the 2 bedroom is the average unit size and payment standard.
Based on the attached review of proposed FY20 Fair Market Rents, all FMR's for all units sizes except for Washtenaw County efficiency units, have decreased. Washtenaw and Monroe counties have decreased FMR's of less than 5% for all unit sizes. Wayne County's FMR has increased less than 3% for all unit sizes.
The FY19 payment standard for Wayne and Monroe counties were set at 100% of the FMR. The FMR for each bedroom size decreased in FY20 at different rates. AAHC staff rec...

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