Title
Resolution to Approve the FY22 Payment Standard for the Ann Arbor Housing Commission Emergency Housing 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), Project Based Vouchers (PBV) and Emergency Housing Vouchers (EHV). 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.
In accordance to HUD regulation the Ann Arbor Housing Commission's (AAHC) established a separate payment standard for the Emergency Housing Voucher (EHV) program. HUD allows the Ann Arbor Housing Commission's (AAHC) to establish a separate payment standard of 120% of the FMR for the EHV program.
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. As a result of the increase in HUD's FY22 FMR's; staff propose to increase the FY22 Payment Standard for both counties which would enable the AAHC to stay in compliance with HUD regulations. The result is that the FY22 Payment Standards will for the EHV program will be set at 120% of the FY22 FMR.
Staff recommend that the Board set the payment standard for Washtenaw and Monroe County at 120% of the FMR (which is the maximum allowed by HUD) for EHV program only, due to the difficult housing market. This would result in an increase in subsidy for all EHV participants.
Emergency Housing Voucher for Washtenaw
Year
Efficiency
One-Bedroom
Two-Bedroom
Three-Bedroom
Four-Bedroom
Five-...
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