Title
Resolution to Amend the FY22 Payment Standard for the Ann Arbor Housing Commission Voucher Program to 120% AMI
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.
AAHC last reviewed the FY22 Payment Standard in October 2021. The Board approved the Payment Standard effective December 1, 2021 at 110% of the FMR for Washtenaw and 100% for Monroe and Wayne. In January 2021, AAHC applied for an expedited waiver to increase the payment standard to 120% of the HUD FMR. On February 7, 2022, HUD approved the request, therefore staff recommend that the Board set the F22 Payment Standard for Washtenaw, Monroe, and Wayne county at 120% of the FMR, due to the difficult housing market. This would result in an increase in subsidy for all participants.
...Staff
Prepared by: Weneshia Brand, Director of Operations
Approved by: Jennifer Hall, Executive Director
Body
WHEREAS, the Department of Housing & Urban Development (HUD) annually establishes and publishes Fair Market Rents (FMRs) by locale; and
WHEREAS, HUD ap...
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