CARH’S BROADCAST E-MAIL – Regulatory Update

August 30, 2019

The Department of Housing and Urban Development (HUD) published a Notice in today’s Federal Register on the Fair Market Rents for the Housing Choice Voucher Program, Moderate Rehabilitation Single Room Occupancy Program, and Other Programs Fiscal Year 2020.

Section 8(c)(1) of the United States Housing Act of 1937 (USHA), as amended by the Housing Opportunities Through Modernization Act of 2016 (HOTMA), requires the Secretary to publish Fair Market Rents (FMRs) not less than annually, adjusted to be effective on October 1 of each year. This Notice describes the methods used to calculate the Fiscal Year (FY) 2020 FMRs and enumerates the procedures for Public Housing Agencies (PHAs) and other interested parties to request reevaluations of their FMRs as required by HOTMA. HOTMA no longer required HUD to publish proposed FMRs for comment in the Federal Register. Instead, HUD may post the FMRs on their website and announce such posting by notice published in the Federal Register. Today’s Notice provides that announcement. Click here to go directly to the FMRs. The FMRs are effective October 1, 2019, unless HUD receives a request of re-evaluation of a specific area. Comments and/or requests for re-evaluation are due by September 30, 2019.

These FMRs are used for several purposes. Specifically, the FMRs in the Notice are used to determine: (i) the payment standard amounts for the Housing Choice Voucher program; (ii) initial renewal rents for some expiring project-based Section 8 contracts; (iii) initial rents for housing assistance payment contracts in the Moderate Rehabilitation Single Room Occupancy program; and (iv) to serve as a rent ceiling in the HOME program. FMRs are also used in calculating flat rents in Public Housing units.

This notice also discusses the comments received on the Notice of Proposed Changes to the Methodology Used for Estimating Fair Market Rents published in the Federal Register on June 5, 2019.

If you have any questions, please contact the CARH national office at carh@carh.org or 703-837-9001.