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File #: 22-0259    Version: 1 Name: AAHC FY22 Payment Standard 120%
Type: Resolution Status: Filed
File created: 2/4/2022 In control: Housing Commission
On agenda: 2/16/2022 Final action: 2/16/2022
Enactment date: Enactment #:
Title: Resolution to Amend the FY22 Payment Standard for the Ann Arbor Housing Commission Voucher Program to 120% AMI

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 approved the Ann Arbor Housing Commission’s (AAHC) payment standards to be set at 120% of the published FMRs; and

WHEREAS, HUD has published its FY22 FMRs; and

 

 

 

WHEREAS, It is recommended that the Board adopt the following Payment Standards:

Proposed FY22 Payment Standard Washtenaw

 

Year

Efficiency

One-Bedroom

Two-Bedroom

Three-Bedroom

Four-Bedroom

Five-Bedroom

HUD FY21 FMR

$1,029

$1,043

$1,264

$1,593

$1,892

$2,176

HUD Proposed FY22 FMR

$1,047

$1,048

$1,262

$1,560

$1,816

$2,088

% FMR Change

2%

0%

0%

-2%

-4%

-4%

2021 Payment Standard

$ 1,132

$1,147

$1,390

$1,752

$2,081

$2,393

2022 Proposed PS

$1,256

$1,257

$1,514

$1,872

$2,179

$2,506

2022 PS as a % of FMR

120%

120%

120%

120%

120%

120%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Proposed FY22 Payment Standard Monroe County

Year

Efficiency

One-Bedroom

Two-Bedroom

Three-Bedroom

Four-Bedroom

Five-Bedroom

HUD FY21 FMR

$626

$691

$899

$1,220

$1,327

$1,526

HUD Proposed FY22 FMR

$631

$723

$941

$1,237

$1,503

$1,728

% FMR Change

1%

4%

4%

1%

12%

12%

2021 Payment Standard

$626

$691

$899

$1,220

$1,327

$1,526

2022 Proposed PS

$757

$867

$1129

$1,484

$1,803

$2,074

2022 PS as a % of FMR

120%

120%

120%

120%

120%

120%

 

 

 

 

 

 

 

Proposed FY22 Payment Standard Wayne County

Year

Efficiency

One-Bedroom

Two-Bedroom

Three-Bedroom

Four-Bedroom

Five-Bedroom

HUD FY21 FMR

$697

$821

$1,049

$1,344

$1,458

$1,677

HUD Proposed FY22 FMR

$733

$848

$1,084

$1,371

$1,473

$1,694

% FMR Change

5%

3%

3%

2%

1%

1%

2021 Payment Standard

$662

$780

$997

$1,277

$1,385

$1,593

2022 Proposed PS

$879

$1017

$1,300

$1,645

$1,767

$2,032

2022 PS as a % of FMR

120%

120%

120%

120%

120%

120%

 

RESOLVED, that the Ann Arbor Housing Commission Board approves an amendement to the FY22 Payment Standard of 120% of FMR for Washtenaw County, Western Wayne County, and Monroe County as shown in the chart above, to take effect April 1, 2022 for all applicable certifications in accordance with the Ann Arbor Housing Commission’s Voucher Administrative Plan.