81_FR_22369 81 FR 22296 - Section 8 Housing Assistance Payments Program-Fiscal Year (FY) 2016 Inflation Factors for Public Housing Agency (PHA) Renewal Funding

81 FR 22296 - Section 8 Housing Assistance Payments Program-Fiscal Year (FY) 2016 Inflation Factors for Public Housing Agency (PHA) Renewal Funding

DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

Federal Register Volume 81, Issue 73 (April 15, 2016)

Page Range22296-22297
FR Document2016-08780

The Consolidated Appropriations Act, 2016 requires that HUD apply ``an inflation factor as established by the Secretary, by notice published in the Federal Register'' to adjust FY 2016 renewal funding for the Tenant-based Rental Assistance Program or Housing Choice Voucher (HCV) Program of each PHA. HUD began using Renewal Funding Inflation Factors in FY 2012. These Renewal Funding Inflation Factors incorporate economic indices to measure the expected change in per unit costs (PUC) for the HCV program. The methodology for FY 2016 is modified from what was used in FY 2015.

Federal Register, Volume 81 Issue 73 (Friday, April 15, 2016) 
[Federal Register Volume 81, Number 73 (Friday, April 15, 2016)]
[Notices]
[Pages 22296-22297]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2016-08780]


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DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

[Docket No. FR-5939-N-01]


Section 8 Housing Assistance Payments Program--Fiscal Year (FY) 
2016 Inflation Factors for Public Housing Agency (PHA) Renewal Funding

AGENCY: Office of the Assistant Secretary for Policy Development and 
Research, HUD.

ACTION: Notice.

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SUMMARY: The Consolidated Appropriations Act, 2016 requires that HUD 
apply ``an inflation factor as established by the Secretary, by notice 
published in the Federal Register'' to adjust FY 2016 renewal funding 
for the Tenant-based Rental Assistance Program or Housing Choice 
Voucher (HCV) Program of each PHA. HUD began using Renewal Funding 
Inflation Factors in FY 2012. These Renewal Funding Inflation Factors 
incorporate economic indices to measure the expected change in per unit 
costs (PUC) for the HCV program. The methodology for FY 2016 is 
modified from what was used in FY 2015.

DATES: Effective date: April 15, 2016.

FOR FURTHER INFORMATION CONTACT: Miguel A. Fontanez, Director, Housing 
Voucher Financial Division, Office of Public Housing and Voucher 
Programs, Office of Public and Indian Housing, telephone number 202-
402-4212; or Peter B. Kahn, Director, Economic and Market Analysis 
Division, Office of Policy Development and Research, telephone number 
202-402-2409, for technical information regarding the development of 
the schedules for specific areas or the methods used for calculating 
the inflation factors, Department of Housing and Urban Development, 451 
7th Street SW., Washington, DC 20410. Hearing- or speech-impaired 
persons may contact the Federal Relay Service at 800-877-8339 (TTY). 
(Other than the ``800'' TTY number, the above-listed telephone numbers 
are not toll free.)

SUPPLEMENTARY INFORMATION:

I. Background

    Tables showing Renewal Funding Inflation Factors will be available 
electronically from the HUD data information page at: http://www.huduser.gov/portal/datasets/rfif/FY2016/FY2016_RFIF_FMR_AREA_REPORT.pdf.
    Division L, Title II, Consolidated Appropriations Act, 2016 
requires that the HUD Secretary, for the calendar year 2016 funding 
cycle, provide renewal funding for each public housing agency (PHA) 
based on validated voucher management system (VMS) leasing and cost 
data for the prior calendar year and by applying an inflation factor as 
established by the Secretary, by notice published in the Federal 
Register. This notice provides the FY 2016 inflation factors and 
describes the methodology for calculating them.

II. Methodology

    The Department has focused on measuring the change in average per 
unit cost (PUC) as captured in HUD's administrative data in VMS. In 
order to predict the likely path of PUC over time, HUD has implemented 
a model that uses three economic indices that capture key components of 
the economic climate and assist in explaining the changes in PUC. These 
economic components are the seasonally-adjusted unemployment rate 
(lagged twelve months), the Consumer Price Index from the Bureau of 
Labor Statistics, and the ``wages and salaries'' component of personal 
income from the National Income and Product Accounts from the Bureau of 
Economic Analysis. This model subsequently forecasts the expected 
annual change in average PUC from Calendar Year (CY) 2015 to CY 2016 
for the voucher program on a national basis by incorporating comparable 
economic variables from the Administration's economic assumptions. For 
reference, these economic assumptions are described in the FY 2016 
Budget. The inflation factor for an individual geographic area is based 
on the annualized change in the area's Fair Market Rent (FMR) between 
FY 2014 and FY 2016. These changes in FMR are then scaled such that the 
voucher-weighted average of all individual area inflation factors is 
equal to the expected annual change in national PUC from 2015 to 2016, 
and also such that no area has a factor less than one. HUD subsequently 
applies these calculated individual area inflation factors to eligible 
renewal funding for each PHA based on VMS leasing and cost data for the 
prior calendar year. The CY 2016 PHA HCV allocation uses 0.8 percent as 
the annual change in PUC. This figure was calculated by using VMS data 
through December of 2015 and actual performance of economic indices 
through December of 2015.

III. The Use of Inflation Factors

    The inflation factors have been developed to account for relative 
differences in the changes of local rents so that HCV funds can be 
allocated among PHAs. In response to comments provided to HUD as 
requested in the 2015 Renewal Funding Inflation Factor notice, HUD has 
used the annualized change in FMRs measured between FY 2014 and FY 2016 
in the apportionment of the national inflation rate to account for both 
the current change in rents but also the changes in rents experienced 
last year when the predicted inflation rate was negative. HUD 
anticipates that in 2017, the national inflation rate will be based on 
a new model of Per Unit Cost HUD is developing in response to comments 
that is based on independent forecasts of gross rents and tenant 
incomes without relying on historical values of Per Unit Cost, and will 
apportion this change based on the change in individual areas FMRs 
between FY 2016 and FY 2017.

IV. Geographic Areas and Area Definitions

    Inflation factors based on renewal funding and area FMR changes are

[[Page 22297]]

produced for all FMR areas. The tables showing the Renewal Funding 
Inflation Factors available electronically from the HUD data 
information page list the inflation factors for each FMR area and are 
created on a state by state basis. The inflation factors use the same 
OMB metropolitan area definitions, as revised by HUD, that are used in 
the FY 2016 FMRs. To make certain that they are referencing the correct 
inflation factors, PHAs should refer to the Area Definitions Table on 
the following Web page: http://www.huduser.org/portal/datasets/rfif/FY2016/FY2016_RFIF_FMR_AREA_REPORT.pdf. The Area Definitions Table 
lists areas in alphabetical order by state, and the counties associated 
with each area. In the six New England states, the listings are for 
counties or parts of counties as defined by towns or cities.

V. Environmental Impact

    This notice involves a statutorily required establishment of a rate 
or cost determination which does not constitute a development decision 
affecting the physical condition of specific project areas or building 
sites. Accordingly, under 24 CFR 50.19(c)(6), this notice is 
categorically excluded from environmental review under the National 
Environmental Policy Act of 1969 (42 U.S.C. 4321).

    Dated: April 8, 2016.
Katherine M. O'Regan,
Assistant Secretary for Policy, Development and Research.
[FR Doc. 2016-08780 Filed 4-14-16; 8:45 am]
 BILLING CODE 4210-67-P

22296 Federal Register / Vol. 81, No. 73 / Friday, April 15, 2016 / Notices CONTESTING RECORDS PROCEDURES: Inflation Factors incorporate economic Price Index from the Bureau of Labor The Department’s rules for contesting indices to measure the expected change Statistics, and the ‘‘wages and salaries’’ contents of records and appealing initial in per unit costs (PUC) for the HCV component of personal income from the denials appear in 24 CFR part 16, program. The methodology for FY 2016 National Income and Product Accounts Procedures for Inquiries. Additional is modified from what was used in FY from the Bureau of Economic Analysis. assistance may be obtained by 2015. This model subsequently forecasts the contacting Frieda B. Edwards, Acting DATES: Effective date: April 15, 2016. expected annual change in average PUC Chief Privacy Officer, 451 Seventh FOR FURTHER INFORMATION CONTACT: from Calendar Year (CY) 2015 to CY Street, SW., Room 10139, Washington, Miguel A. Fontanez, Director, Housing 2016 for the voucher program on a DC 20410, or the HUD Departmental Voucher Financial Division, Office of national basis by incorporating Privacy Appeals Officers, Office of Public Housing and Voucher Programs, comparable economic variables from the General Counsel, Department of Office of Public and Indian Housing, Administration’s economic Housing and Urban Development, 451 telephone number 202–402–4212; or assumptions. For reference, these Seventh Street, SW., Room 10110 economic assumptions are described in Peter B. Kahn, Director, Economic and Washington DC 20410. the FY 2016 Budget. The inflation factor Market Analysis Division, Office of for an individual geographic area is RECORD SOURCE CATEGORIES: Policy Development and Research, based on the annualized change in the telephone number 202–402–2409, for The records maintained by the system area’s Fair Market Rent (FMR) between technical information regarding the are provided directly by the FY 2014 and FY 2016. These changes in development of the schedules for homeowners, by completion of the FMR are then scaled such that the specific areas or the methods used for Uniform Residential Loan Application voucher-weighted average of all calculating the inflation factors, (form HUD–92900–A). Information is individual area inflation factors is equal Department of Housing and Urban also collected by the mortgagees to the expected annual change in Development, 451 7th Street SW., national PUC from 2015 to 2016, and (lenders), who collect the personal Washington, DC 20410. Hearing- or also such that no area has a factor less information from the homeowner and speech-impaired persons may contact than one. HUD subsequently applies enters the information into the HUD the Federal Relay Service at 800–877– these calculated individual area Single Family Computerized Home 8339 (TTY). (Other than the ‘‘800’’ TTY inflation factors to eligible renewal Underwriting Management System number, the above-listed telephone funding for each PHA based on VMS (CHUMS). After the case is endorsed, numbers are not toll free.) leasing and cost data for the prior CHUMS sends case data to SFIS, which is maintained in SFIS until the case is SUPPLEMENTARY INFORMATION: calendar year. The CY 2016 PHA HCV terminated (non-claim, claim, or other I. Background allocation uses 0.8 percent as the annual type of cancellation). Once the case is change in PUC. This figure was non-claim terminated, termination data Tables showing Renewal Funding calculated by using VMS data through is sent to the DSRS. Inflation Factors will be available December of 2015 and actual electronically from the HUD data performance of economic indices EXEMPTIONS FROM CERTAIN PROVISIONS OF THE information page at: http:// through December of 2015. ACT: www.huduser.gov/portal/datasets/rfif/ None. FY2016/FY2016_RFIF_FMR_AREA_ III. The Use of Inflation Factors [FR Doc. 2016–08774 Filed 4–14–16; 8:45 am] REPORT.pdf. The inflation factors have been BILLING CODE 4210–67–P Division L, Title II, Consolidated developed to account for relative Appropriations Act, 2016 requires that differences in the changes of local rents the HUD Secretary, for the calendar year so that HCV funds can be allocated DEPARTMENT OF HOUSING AND 2016 funding cycle, provide renewal among PHAs. In response to comments URBAN DEVELOPMENT funding for each public housing agency provided to HUD as requested in the (PHA) based on validated voucher 2015 Renewal Funding Inflation Factor [Docket No. FR–5939–N–01] management system (VMS) leasing and notice, HUD has used the annualized Section 8 Housing Assistance cost data for the prior calendar year and change in FMRs measured between FY Payments Program—Fiscal Year (FY) by applying an inflation factor as 2014 and FY 2016 in the apportionment 2016 Inflation Factors for Public established by the Secretary, by notice of the national inflation rate to account Housing Agency (PHA) Renewal published in the Federal Register. This for both the current change in rents but Funding notice provides the FY 2016 inflation also the changes in rents experienced factors and describes the methodology last year when the predicted inflation AGENCY: Office of the Assistant for calculating them. rate was negative. HUD anticipates that Secretary for Policy Development and in 2017, the national inflation rate will II. Methodology Research, HUD. be based on a new model of Per Unit ACTION: Notice. The Department has focused on Cost HUD is developing in response to measuring the change in average per comments that is based on independent SUMMARY: The Consolidated unit cost (PUC) as captured in HUD’s forecasts of gross rents and tenant Appropriations Act, 2016 requires that administrative data in VMS. In order to incomes without relying on historical HUD apply ‘‘an inflation factor as predict the likely path of PUC over time, asabaliauskas on DSK3SPTVN1PROD with NOTICES values of Per Unit Cost, and will established by the Secretary, by notice HUD has implemented a model that apportion this change based on the published in the Federal Register’’ to uses three economic indices that change in individual areas FMRs adjust FY 2016 renewal funding for the capture key components of the between FY 2016 and FY 2017. Tenant-based Rental Assistance Program economic climate and assist in or Housing Choice Voucher (HCV) explaining the changes in PUC. These IV. Geographic Areas and Area Program of each PHA. HUD began using economic components are the Definitions Renewal Funding Inflation Factors in seasonally-adjusted unemployment rate Inflation factors based on renewal FY 2012. These Renewal Funding (lagged twelve months), the Consumer funding and area FMR changes are VerDate Sep<11>2014 17:27 Apr 14, 2016 Jkt 238001 PO 00000 Frm 00089 Fmt 4703 Sfmt 4703 E:\FR\FM\15APN1.SGM 15APN1

Federal Register / Vol. 81, No. 73 / Friday, April 15, 2016 / Notices 22297 produced for all FMR areas. The tables the proposal by name and/or OMB participating housing counseling showing the Renewal Funding Inflation Control Number and should be sent to: agency, and a HUD’s Housing Factors available electronically from the HUD Desk Officer, Office of Counseling System number. Registration HUD data information page list the Management and Budget, New for the practice and certification inflation factors for each FMR area and Executive Office Building, Washington, examinations through this system will are created on a state by state basis. The DC 20503; fax: 202–395–5806. Email: require, in addition to the information inflation factors use the same OMB OIRA_Submission@omb.eop.gov. for general registration, a full mailing metropolitan area definitions, as revised FOR FURTHER INFORMATION CONTACT: address, social security number, by HUD, that are used in the FY 2016 Colette Pollard, Reports Management language(s) spoken by the counselor FMRs. To make certain that they are Officer, QMAC, Department of Housing when providing counseling servicing, referencing the correct inflation factors, and Urban Development, 451 7th Street and optional demographic data (race, PHAs should refer to the Area SW., Washington, DC 20410; email ethnicity, gender). Collection of social Definitions Table on the following Web Colette Pollard at Colette.Pollard@ security numbers is required for linking page: http://www.huduser.org/portal/ hud.gov or telephone 202–402–3400. the individual’s information to HUD’s datasets/rfif/FY2016/FY2016_RFIF_ This is not a toll-free number. Persons FHA Connection system, so HUD can FMR_AREA_REPORT.pdf. The Area with hearing or speech impairments verify applicants are employed by Definitions Table lists areas in may access this number through TTY by participating agencies. HUD estimates alphabetical order by state, and the calling the toll-free Federal Relay the collection of this information to counties associated with each area. In Service at (800) 877–8339. average five minutes for each individual the six New England states, the listings Copies of available documents that registers for the on-line training, are for counties or parts of counties as submitted to OMB may be obtained practice examination, and certification defined by towns or cities. from Ms. Pollard. examination. Public reporting burden SUPPLEMENTARY INFORMATION: This for this collection of information is V. Environmental Impact notice informs the public that HUD is estimated to average 1,700 hours per This notice involves a statutorily year. required establishment of a rate or cost seeking approval from OMB for the information collection described in Respondents: Individuals. determination which does not constitute a development decision affecting the Section A. Estimated Number of Respondents: The Federal Register notice that 10,700. physical condition of specific project solicited public comment on the areas or building sites. Accordingly, Estimated Number of Annual information collection for a period of 60 under 24 CFR 50.19(c)(6), this notice is Responses: 3,567. days was published on October 9, 2015 categorically excluded from at 80 FR 61224. Frequency of Response: Once. environmental review under the National Environmental Policy Act of A. Overview of Information Collection Average Hours per Response: 15 1969 (42 U.S.C. 4321). minutes (.25). Title of Information Collection: Dated: April 8, 2016. Certified Housing Counselor Total Estimated Burdens: 892 hours. Katherine M. O’Regan, Registration. B. Solicitation of Public Comment Assistant Secretary for Policy, Development OMB Approval Number: 2502—New. and Research. Type of Request: New collection. This notice is soliciting comments [FR Doc. 2016–08780 Filed 4–14–16; 8:45 am] Form Number: None. from members of the public and affected BILLING CODE 4210–67–P Description of the need for the parties concerning the collection of information and proposed use: Pursuant information described in Section A on to Section 1445 of the Dodd-Frank Act, the following: DEPARTMENT OF HOUSING AND all individuals providing (1) Whether the proposed collection URBAN DEVELOPMENT homeownership or rental housing of information is necessary for the counseling related to HUD programs proper performance of the functions of [Docket No. FR–5909–N–29] must be HUD-certified housing the agency, including whether the 30-Day Notice of Proposed Information counselors. To become certified, a information will have practical utility; Collection: Certified Housing housing counselor must pass a written examination. HUD established a (2) The accuracy of the agency’s Counselor Registration estimate of the burden of the proposed Housing Counselor Certification Exam AGENCY: Office of the Chief Information and training program, as mandated by collection of information; Officer, HUD. Subtitle D of title XIV of the Dodd-Frank (3) Ways to enhance the quality, ACTION: Notice. Wall Street Reform and Consumer utility, and clarity of the information to Protection Act (Pub. L. 111–203, 124 be collected; and SUMMARY: HUD has submitted the Stat. 1376 (July 21, 2010)) (Dodd-Frank proposed information collection (4) Ways to minimize the burden of Act), and created a Web site for the collection of information on those requirement described below to the individuals to register for the Office of Management and Budget who are to respond; including through examination and training. To track the use of appropriate automated (OMB) for review, in accordance with individuals using the training, asabaliauskas on DSK3SPTVN1PROD with NOTICES the Paperwork Reduction Act. The collection techniques or other forms of successful passage of the examination, information technology, e.g., permitting purpose of this notice is to allow for an and eligibility for certification, the Web additional 30 days of public comment. electronic submission of responses. site has a registration requirement. DATES: Comments Due Date: May 16, Registration through HUD’s certification HUD encourages interested parties to 2016. contractor’s Web site for the on-line submit comment in response to these ADDRESSES: Interested persons are training will require name, city, state, questions. invited to submit comments regarding telephone number, email address, Authority: Section 3507 of the Paperwork this proposal. Comments should refer to occupation, if employer is a HUD- Reduction Act of 1995, 44 U.S.C. Chapter 35. VerDate Sep<11>2014 17:27 Apr 14, 2016 Jkt 238001 PO 00000 Frm 00090 Fmt 4703 Sfmt 4703 E:\FR\FM\15APN1.SGM 15APN1


Document Created: 2016-04-15 00:55:05
Document Modified: 2016-04-15 00:55:05
CategoryRegulatory Information
CollectionFederal Register
sudoc ClassAE 2.7:
GS 4.107:
AE 2.106:
PublisherOffice of the Federal Register, National Archives and Records Administration
SectionNotices
ActionNotice.
ContactMiguel A. Fontanez, Director, Housing Voucher Financial Division, Office of Public Housing and Voucher Programs, Office of Public and Indian Housing, telephone number 202- 402-4212; or Peter B. Kahn, Director, Economic and Market Analysis Division, Office of Policy Development and Research, telephone number 202-402-2409, for technical information regarding the development of the schedules for specific areas or the methods used for calculating the inflation factors, Department of Housing and Urban Development, 451 7th Street SW., Washington, DC 20410. Hearing- or speech-impaired persons may contact the Federal Relay Service at 800-877-8339 (TTY). (Other than the ``800'' TTY number, the above-listed telephone numbers are not toll free.)
FR Citation81 FR 22296 
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