81 FR 26576 - Section 8 Housing Assistance Payments Program-Annual Adjustment Factors, Fiscal Year 2016

DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

Federal Register Volume 81, Issue 85 (May 3, 2016)

Page Range		26576-26578
FR Document		2016-10328

The United States Housing Act of 1937 requires that certain assistance contracts signed by owners participating in the Department's Section 8 housing assistance payment programs provide annual adjustments to monthly rentals for units covered by the contracts. This notice announces FY 2016 AAFs for adjustment of contract rents on the anniversary of those assistance contracts. The factors are based on a formula using residential rent and utility cost changes from the most recent annual Bureau of Labor Statistics Consumer Price Index (CPI) survey. Beginning with the FY 2014 AAFs and continuing with these FY 2016 AAFs, the Puerto Rico CPI is used in place of the South Region CPI for all areas in Puerto Rico. These factors are applied at the anniversary of Housing Assistance Payment (HAP) contracts for which rents are to be adjusted using the AAF for those calendar months commencing after the effective date of this notice. A separate Federal Register Notice published on April 15, 2016 (81 FR 22296) identifies the inflation factors that will be used to adjust tenant-based rental assistance funding for FY 2016.

Federal Register, Volume 81 Issue 85 (Tuesday, May 3, 2016)

[Federal Register Volume 81, Number 85 (Tuesday, May 3, 2016)]
[Notices]
[Pages 26576-26578]
From the Federal Register Online [www.thefederalregister.org]
[FR Doc No: 2016-10328]

[[Page 26576]]

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DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

[Docket No. FR-5930-N-01]

Section 8 Housing Assistance Payments Program--Annual Adjustment
Factors, Fiscal Year 2016

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

ACTION: Notice of Fiscal Year (FY) 2016 Annual Adjustment Factors
(AAFs).

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SUMMARY: The United States Housing Act of 1937 requires that certain
assistance contracts signed by owners participating in the Department's
Section 8 housing assistance payment programs provide annual
adjustments to monthly rentals for units covered by the contracts. This
notice announces FY 2016 AAFs for adjustment of contract rents on the
anniversary of those assistance contracts. The factors are based on a
formula using residential rent and utility cost changes from the most
recent annual Bureau of Labor Statistics Consumer Price Index (CPI)
survey. Beginning with the FY 2014 AAFs and continuing with these FY
2016 AAFs, the Puerto Rico CPI is used in place of the South Region CPI
for all areas in Puerto Rico. These factors are applied at the
anniversary of Housing Assistance Payment (HAP) contracts for which
rents are to be adjusted using the AAF for those calendar months
commencing after the effective date of this notice. A separate Federal
Register Notice published on April 15, 2016 (81 FR 22296) identifies
the inflation factors that will be used to adjust tenant-based rental
assistance funding for FY 2016.

DATES: Effective date: May 3, 2016.

FOR FURTHER INFORMATION CONTACT: Contact Becky Primeaux, Director,
Management and Operations Division, Office of Housing Voucher Programs,
Office of Public and Indian Housing, 202-708-1380, for questions
relating to the Project-Based Certificate and Moderate Rehabilitation
programs (not the Single Room Occupancy program); Ann Oliva, Director,
Office of Special Needs Assistance Programs, Office of Community
Planning and Development, 202-708-4300, for questions regarding the
Single Room Occupancy (SRO) Moderate Rehabilitation program; Catherine
Brennan, Director, Office of Housing Assistance and Grant
Administration, Office of Housing, 202-708-3000, for questions relating
to all other Section 8 programs; and Marie Lihn, Economist, Economic
and Market Analysis Division, Office of Policy Development and
Research, 202-402-5866, for technical information regarding the
development of the schedules for specific areas or the methods used for
calculating the AAFs. The mailing address for these individuals is:
Department of Housing and Urban Development, 451 7th Street SW.,
Washington, DC 20410. Hearing- or speech-impaired persons may contact
the Federal Information Relay Service at 800-877-8339 (TTY). (Other
than the ``800'' TTY number, the above-listed telephone numbers are not
toll free.)

SUPPLEMENTARY INFORMATION: Tables showing AAFs will be available
electronically from the HUD data information page at http://www.huduser.gov/portal/datasets/aaf.html.

I. Applying AAFs to Various Section 8 Programs

AAFs established by this Notice are used to adjust contract rents
for units assisted in certain Section 8 housing assistance payment
programs during the initial (i.e., pre-renewal) term of the HAP
contract and for all units in the Project-Based Certificate program.
There are three categories of Section 8 programs that use the AAFs:
Category 1: The Section 8 New Construction, Substantial
Rehabilitation, and Moderate Rehabilitation programs;
Category 2: The Section 8 Loan Management (LM) and Property
Disposition (PD) programs; and
Category 3: The Section 8 Project-Based Certificate (PBC)
program.\1\
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\1\ As of February, 2016, all PBC contracts should be completed
since the program has been merged with the Housing Choice Voucher
program. For completeness, HUD is continuing to list Category 3 uses
of AAFs for this FY 2016 AAF publication, but intends to discontinue
listing Category 3 in FY 2017.
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Each Section 8 program category uses the AAFs differently. The
specific application of the AAFs is determined by the law, the HAP
contract, and appropriate program regulations or requirements.
AAFs are not used in the following cases:
Renewal Rents. With the exception of the Project-Based Certificate
program, AAFs are not used to determine renewal rents after expiration
of the original Section 8 HAP contract (either for projects where the
Section 8 HAP contract is renewed under a restructuring plan adopted
under 24 CFR part 401; or renewed without restructuring under 24 CFR
part 402). In general, renewal rents are established in accordance with
the statutory provision in the Multifamily Assisted Housing Reform and
Affordability Act of 1997 (MAHRA), as amended, under which the HAP is
renewed. After renewal, annual rent adjustments will be provided in
accordance with MAHRA.
Budget-based Rents. AAFs are not used for budget-based rent
adjustments. For projects receiving Section 8 subsidies under the LM
program (24 CFR part 886, subpart A) and for projects receiving Section
8 subsidies under the PD program (24 CFR part 886, subpart C), contract
rents are adjusted, at HUD's option, either by applying the AAFs or by
budget-based adjustments in accordance with 24 CFR 886.112(b) and 24
CFR 886.312(b). Budget-based adjustments are used for most Section 8/
202 projects.
Tenant-based Certificate Program. In the past, AAFs were used to
adjust the contract rent (including manufactured home space rentals) in
both the tenant-based and project-based certificate programs. The
tenant-based certificate program has been terminated and all tenancies
in the tenant-based certificate program have been converted to the
Housing Choice Voucher Program, which does not use AAFs to adjust
rents. All tenancies remaining in the project-based certificate program
continue to use AAFs to adjust contract rent for outstanding HAP
contracts.
Voucher Program. AAFs are not used to adjust rents in the Tenant-
Based or the Project-Based Voucher programs.

II. Adjustment Procedures

This section of the notice provides a broad description of
procedures for adjusting the contract rent. Technical details and
requirements are described in HUD notices H 2002-10 (Section 8 New
Construction and Substantial Rehabilitation, Loan Management, and
Property Disposition) and PIH 97-57 (Moderate Rehabilitation and
Project-Based Certificates).
Because of statutory and structural distinctions among the various
Section 8 programs, there are separate rent adjustment procedures for
the three program categories:

Category 1: Section 8 New Construction, Substantial Rehabilitation, and
Moderate Rehabilitation Programs

In the Section 8 New Construction and Substantial Rehabilitation
programs, the published AAF factor is applied to the pre-adjustment
contract

[[Page 26577]]

rent. In the Section 8 Moderate Rehabilitation program (both the
regular program and the single room occupancy program) the published
AAF is applied to the pre-adjustment base rent.
For Category 1 programs, the Table 1 AAF factor is applied before
determining comparability (rent reasonableness). Comparability applies
if the pre-adjustment gross rent (pre-adjustment contract rent plus any
allowance for tenant-paid utilities) is above the published Fair Market
Rent (FMR).
If the comparable rent level (plus any initial difference) is lower
than the contract rent as adjusted by application of the Table 1 AAF,
the comparable rent level (plus any initial difference) will be the new
contract rent. However, the pre-adjustment contract rent will not be
decreased by application of comparability.
In all other cases (i.e., unless the contract rent is reduced by
comparability):
Table 1 AAF is used for a unit occupied by a new family
since the last annual contract anniversary.
Table 2 AAF is used for a unit occupied by the same family
as at the time of the last annual contract anniversary.

Category 2: Section 8 Loan Management Program (24 CFR Part 886, Subpart
A) and Property Disposition Program (24 CFR Part 886, Subpart C)

At this time Category 2 programs are not subject to comparability.
Comparability will again apply if HUD establishes regulations for
conducting comparability studies under 42 U.S.C. 1437f(c)(2)(C).
The applicable AAF is determined as follows:
Table 1 AAF is used for a unit occupied by a new family
since the last annual contract anniversary.
Table 2 AAF is used for a unit occupied by the same family
as at the time of the last annual contract anniversary.

Category 3: Section 8 Project-Based Certificate Program

The following procedures are used to adjust contract rent for
outstanding HAP contracts in the Section 8 PBC program:
Table 2 AAF is always used. The Table 1 AAF is not used.
Table 2 AAF is always applied before determining
comparability (rent reasonableness).
Comparability always applies. If the comparable rent level
is lower than the rent to owner (contract rent) as adjusted by
application of the Table 2 AAF, the comparable rent level will be the
new rent to owner.
The new rent to owner will not be reduced below the
contract rent on the effective date of the HAP contract.

III. When To Use Reduced AAFs (From AAF Table 2)

In accordance with Section 8(c)(2)(A) of the United States Housing
Act of 1937 (42 U.S.C. 1437f(c)(2)(A)), the AAF is reduced by 0.01:
For all tenancies assisted in the Section 8 Project-Based
Certificate program.
In other Section 8 programs, for a unit occupied by the
same family at the time of the last annual rent adjustment (and where
the rent is not reduced by application of comparability (rent
reasonableness)).
The law provides that:

Except for assistance under the certificate program, for any
unit occupied by the same family at the time of the last annual
rental adjustment, where the assistance contract provides for the
adjustment of the maximum monthly rent by applying an annual
adjustment factor and where the rent for a unit is otherwise
eligible for an adjustment based on the full amount of the factor,
0.01 shall be subtracted from the amount of the factor, except that
the factor shall not be reduced to less than 1.0. In the case of
assistance under the certificate program, 0.01 shall be subtracted
from the amount of the annual adjustment factor (except that the
factor shall not be reduced to less than 1.0), and the adjusted rent
shall not exceed the rent for a comparable unassisted unit of
similar quality, type and age in the market area. 42 U.S.C.
1437f(c)(2)(A).

Legislative history for this statutory provision states that ``the
rationale [for lower AAFs for non-turnover units is] that operating
costs are less if tenant turnover is less . . .'' (see Department of
Veteran Affairs and Housing and Urban Development, and Independent
Agencies Appropriations for 1995, Hearings Before a Subcommittee of the
Committee on Appropriations 103d Cong., 2d Sess. 591 (1994)). The
Congressional Record also states the following:

Because the cost to owners of turnover-related vacancies,
maintenance, and marketing are lower for long-term stable tenants,
these tenants are typically charged less than recent movers in the
unassisted market. Since HUD pays the full amount of any rent
increases for assisted tenants in section 8 projects and under the
Certificate program, HUD should expect to benefit from this `tenure
discount.' Turnover is lower in assisted properties than in the
unassisted market, so the effect of the current inconsistency with
market-based rent increases is exacerbated. (140 Cong. Rec. 8659,
8693 (1994)).

To implement the law, HUD publishes two separate AAF Tables, Table
1 and Table 2. The difference between Table 1 and Table 2 is that each
AAF in Table 2 is 0.01 less than the corresponding AAF in Table 1.
Where an AAF in Table 1 would otherwise be less than 1.0, it is set at
1.0, as required by statute; the corresponding AAF in Table 2 will also
be set at 1.0, as required by statute.

IV. How To Find the AAF

AAF Table 1 and Table 2 are posted on the HUD User Web site at
http://www.huduser.gov/portal/datasets/aaf.html. There are two columns
in each AAF table. The first column is used to adjust contract rent for
rental units where the highest cost utility is included in the contract
rent, i.e., where the owner pays for the highest cost utility. The
second column is used where the highest cost utility is not included in
the contract rent, i.e., where the tenant pays for the highest cost
utility.
The applicable AAF is selected as follows:
Determine whether Table 1 or Table 2 is applicable. In
Table 1 or Table 2, locate the AAF for the geographic area where the
contract unit is located.
Determine whether the highest cost utility is or is not
included in contract rent for the contract unit.
If highest cost utility is included, select the AAF from
the column for ``Highest Cost Utility Included.'' If highest cost
utility is not included, select the AAF from the column for ``Highest
Cost Utility Excluded.''

V. Methodology

AAFs are rent inflation factors. Two types of rent inflation
factors are calculated for AAFs: Gross rent factors and shelter rent
factors. The gross rent factor accounts for inflation in the cost of
both the rent of the residence and the utilities used by the unit; the
shelter rent factor accounts for the inflation in the rent of the
residence, but does not reflect any change in the cost of utilities.
The gross rent inflation factor is designated as ``Highest Cost Utility
Included'' and the shelter rent inflation factor is designated as
``Highest Cost Utility Excluded.''
AAFs are calculated using CPI data on ``rent of primary residence''
and ``fuels and utilities.'' \2\ The CPI inflation index for rent of
primary residence measures the inflation of all surveyed units
regardless of whether utilities are included in the rent of the unit or
not. In other words, it measures the inflation of the ``contract rent''
which includes units with all utilities included in the

[[Page 26578]]

rent, units with some utilities included in the rent, and units with no
utilities included in the rent. In producing a gross rent inflation
factor and a shelter rent inflation factor, HUD decomposes the contract
rent CPI inflation factor into parts to represent the gross rent change
and the shelter rent change. This is done by applying data from the
Consumer Expenditure Survey (CEX) on the percentage of renters who pay
for heat (a proxy for the percentage of renters who pay shelter rent)
and also American Community Survey (ACS) data on the ratio of utilities
to rents. For Puerto Rico, the Puerto Rico Community Survey (PRCS) is
used to determine the ratio of utilities to rents, resulting in
different AAFs for some metropolitan areas in Puerto Rico.\3\
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\2\ CPI indexes CUUSA103SEHA and CUSR0000SAH2 respectively.
\3\ The formulas used to produce these factors can be found in
the Annual Adjustment Factors overview and in the FMR documentation
at www.HUDUSER.gov.
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Survey Data Used To Produce AAFs

The rent and fuel and utilities inflation factors for large
metropolitan areas and Census regions are based on changes in the rent
of primary residence and fuels and utilities CPI indices from 2013 to
2014. The CEX data used to decompose the contract rent inflation factor
into gross rent and shelter rent inflation factors come from a special
tabulation of 2013 CEX survey data produced for HUD for the purpose of
computing AAFs. The utility-to-rent ratio used to produce AAFs comes
from 2013 ACS median rent and utility costs.

Geographic Areas

AAFs are produced for all Class A CPI cities (CPI cities with a
population of 1.5 million or more) and for the four Census Regions.
They are applied to core-based statistical areas (CBSAs), as defined by
the Office of Management and Budget (OMB), according to how much of the
CBSA is covered by the CPI city-survey. If more than 75 percent of the
CBSA is covered by the CPI city-survey, the AAF that is based on that
CPI survey is applied to the whole CBSA and to any HUD-defined
metropolitan area, called the ``HUD Metro FMR Area'' (HMFA), within
that CBSA. If the CBSA is not covered by a CPI city-survey, the CBSA
uses the relevant regional CPI factor. Almost all non-metropolitan
counties use regional CPI factors.\4\ For areas assigned the Census
Region CPI factor, both metropolitan and non-metropolitan areas receive
the same factor.
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\4\ There are four non-metropolitan counties that continue to
use CPI city updates: Ashtabula County, OH, Henderson County, TX,
Island County, WA, and Lenawee County, MI. BLS has not updated the
geography underlying its survey for new OMB metropolitan area
definitions and these counties, are no longer in metropolitan areas,
but they are included as parts of CPI surveys because they meet the
75 percent standard HUD imposes on survey coverage. These four
counties are treated the same as metropolitan areas using CPI city
data.
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Each metropolitan area that uses a local CPI update factor is
listed alphabetically in the tables and each HMFA is listed
alphabetically within its respective CBSA. Each AAF applies to a
specific geographic area and to units of all bedroom sizes. AAFs are
provided:
For separate metropolitan areas, including HMFAs and
counties that are currently designated as non-metropolitan, but are
part of the metropolitan area defined in the local CPI survey.
For the four Census Regions (to be used for those
metropolitan and non-metropolitan areas that are not covered by a CPI
city-survey).
AAFs use the same OMB metropolitan area definitions, as revised by
HUD, that are used for the FY 2016 FMRs.

Area Definitions

To make certain that they are using the correct AAFs, users should
refer to the Area Definitions Table section at http://www.huduser.gov/portal/datasets/aaf.html. The Area Definitions Table lists CPI areas in
alphabetical order by state, and the associated Census region is shown
next to each state name. Areas whose AAFs are determined by local CPI
surveys are listed first. All metropolitan areas with local CPI surveys
have separate AAF schedules and are shown with their corresponding
county definitions or as metropolitan counties. In the six New England
states, the listings are for counties or parts of counties as defined
by towns or cities. The remaining counties use the CPI for the Census
Region and are not separately listed in the Area Definitions Table at
http://www.huduser.gov/portal/datasets/aaf.html.
Puerto Rico uses its own AAFs calculated from the Puerto Rico CPI
as adjusted by the PRCS, the Virgin Islands uses the South Region AAFs
and the Pacific Islands uses the West Region AAFs. All areas in Hawaii
use the AAFs listed next to ``Hawaii'' in the Tables which are based on
the CPI survey for the Honolulu metropolitan area. The Pacific Islands
use the West Region AAFs.

Dated: April 25, 2016.
Katherine M. O'Regan,
Assistant Secretary for Policy Development and Research.
[FR Doc. 2016-10328 Filed 5-2-16; 8:45 am]
BILLING CODE 4210-67-P

Federal Register / Vol. 81, No. 85 / Tuesday, May 3, 2016 / Notices 26577

rent. In the Section 8 Moderate • The new rent to owner will not be between Table 1 and Table 2 is that each
Rehabilitation program (both the regular reduced below the contract rent on the AAF in Table 2 is 0.01 less than the
program and the single room occupancy effective date of the HAP contract. corresponding AAF in Table 1. Where
program) the published AAF is applied an AAF in Table 1 would otherwise be
III. When To Use Reduced AAFs (From
to the pre-adjustment base rent. less than 1.0, it is set at 1.0, as required
For Category 1 programs, the Table 1 AAF Table 2)
by statute; the corresponding AAF in
AAF factor is applied before In accordance with Section 8(c)(2)(A) Table 2 will also be set at 1.0, as
determining comparability (rent of the United States Housing Act of required by statute.
reasonableness). Comparability applies 1937 (42 U.S.C. 1437f(c)(2)(A)), the AAF
if the pre-adjustment gross rent (pre- is reduced by 0.01: IV. How To Find the AAF
adjustment contract rent plus any • For all tenancies assisted in the AAF Table 1 and Table 2 are posted
allowance for tenant-paid utilities) is Section 8 Project-Based Certificate on the HUD User Web site at http://
above the published Fair Market Rent program. www.huduser.gov/portal/datasets/
(FMR). • In other Section 8 programs, for a aaf.html. There are two columns in each
If the comparable rent level (plus any unit occupied by the same family at the AAF table. The first column is used to
initial difference) is lower than the time of the last annual rent adjustment adjust contract rent for rental units
contract rent as adjusted by application (and where the rent is not reduced by where the highest cost utility is
of the Table 1 AAF, the comparable rent application of comparability (rent included in the contract rent, i.e., where
level (plus any initial difference) will be reasonableness)). the owner pays for the highest cost
the new contract rent. However, the pre- The law provides that: utility. The second column is used
adjustment contract rent will not be Except for assistance under the certificate where the highest cost utility is not
decreased by application of program, for any unit occupied by the same included in the contract rent, i.e., where
comparability. family at the time of the last annual rental the tenant pays for the highest cost
In all other cases (i.e., unless the adjustment, where the assistance contract utility.
contract rent is reduced by provides for the adjustment of the maximum The applicable AAF is selected as
comparability): monthly rent by applying an annual
follows:
• Table 1 AAF is used for a unit adjustment factor and where the rent for a
• Determine whether Table 1 or Table
occupied by a new family since the last unit is otherwise eligible for an adjustment
based on the full amount of the factor, 0.01 2 is applicable. In Table 1 or Table 2,
annual contract anniversary. shall be subtracted from the amount of the locate the AAF for the geographic area
• Table 2 AAF is used for a unit factor, except that the factor shall not be where the contract unit is located.
occupied by the same family as at the reduced to less than 1.0. In the case of • Determine whether the highest cost
time of the last annual contract assistance under the certificate program, 0.01 utility is or is not included in contract
anniversary. shall be subtracted from the amount of the rent for the contract unit.
annual adjustment factor (except that the • If highest cost utility is included,
Category 2: Section 8 Loan Management factor shall not be reduced to less than 1.0),
Program (24 CFR Part 886, Subpart A) and the adjusted rent shall not exceed the
select the AAF from the column for
and Property Disposition Program (24 rent for a comparable unassisted unit of ‘‘Highest Cost Utility Included.’’ If
CFR Part 886, Subpart C) similar quality, type and age in the market highest cost utility is not included,
area. 42 U.S.C. 1437f(c)(2)(A). select the AAF from the column for
At this time Category 2 programs are
not subject to comparability. Legislative history for this statutory ‘‘Highest Cost Utility Excluded.’’
Comparability will again apply if HUD provision states that ‘‘the rationale [for V. Methodology
establishes regulations for conducting lower AAFs for non-turnover units is] AAFs are rent inflation factors. Two
comparability studies under 42 U.S.C. that operating costs are less if tenant types of rent inflation factors are
1437f(c)(2)(C). turnover is less . . .’’ (see Department of calculated for AAFs: Gross rent factors
The applicable AAF is determined as Veteran Affairs and Housing and Urban and shelter rent factors. The gross rent
follows: Development, and Independent
• Table 1 AAF is used for a unit factor accounts for inflation in the cost
Agencies Appropriations for 1995, of both the rent of the residence and the
occupied by a new family since the last Hearings Before a Subcommittee of the
annual contract anniversary. utilities used by the unit; the shelter
Committee on Appropriations 103d rent factor accounts for the inflation in
• Table 2 AAF is used for a unit Cong., 2d Sess. 591 (1994)). The
occupied by the same family as at the the rent of the residence, but does not
Congressional Record also states the reflect any change in the cost of utilities.
time of the last annual contract following:
anniversary. The gross rent inflation factor is
Because the cost to owners of turnover- designated as ‘‘Highest Cost Utility
Category 3: Section 8 Project-Based related vacancies, maintenance, and Included’’ and the shelter rent inflation
Certificate Program marketing are lower for long-term stable factor is designated as ‘‘Highest Cost
tenants, these tenants are typically charged
The following procedures are used to less than recent movers in the unassisted
Utility Excluded.’’
adjust contract rent for outstanding HAP market. Since HUD pays the full amount of AAFs are calculated using CPI data on
contracts in the Section 8 PBC program: any rent increases for assisted tenants in ‘‘rent of primary residence’’ and ‘‘fuels
• Table 2 AAF is always used. The section 8 projects and under the Certificate and utilities.’’ 2 The CPI inflation index
Table 1 AAF is not used. program, HUD should expect to benefit from for rent of primary residence measures
• Table 2 AAF is always applied
asabaliauskas on DSK3SPTVN1PROD with NOTICES

this ‘tenure discount.’ Turnover is lower in the inflation of all surveyed units
before determining comparability (rent assisted properties than in the unassisted regardless of whether utilities are
reasonableness). market, so the effect of the current included in the rent of the unit or not.
• Comparability always applies. If the inconsistency with market-based rent In other words, it measures the inflation
comparable rent level is lower than the increases is exacerbated. (140 Cong. Rec.
8659, 8693 (1994)).
of the ‘‘contract rent’’ which includes
rent to owner (contract rent) as adjusted units with all utilities included in the
by application of the Table 2 AAF, the To implement the law, HUD
comparable rent level will be the new publishes two separate AAF Tables, 2 CPI indexes CUUSA103SEHA and

rent to owner. Table 1 and Table 2. The difference CUSR0000SAH2 respectively.

VerDate Sep<11>2014 18:53 May 02, 2016 Jkt 238001 PO 00000 Frm 00052 Fmt 4703 Sfmt 4703 E:\FR\FM\03MYN1.SGM 03MYN1

26578 Federal Register / Vol. 81, No. 85 / Tuesday, May 3, 2016 / Notices

rent, units with some utilities included Census Region CPI factor, both Dated: April 25, 2016.
in the rent, and units with no utilities metropolitan and non-metropolitan Katherine M. O’Regan,
included in the rent. In producing a areas receive the same factor. Assistant Secretary for Policy Development
gross rent inflation factor and a shelter Each metropolitan area that uses a and Research.
rent inflation factor, HUD decomposes [FR Doc. 2016–10328 Filed 5–2–16; 8:45 am]
local CPI update factor is listed
the contract rent CPI inflation factor into BILLING CODE 4210–67–P
alphabetically in the tables and each
parts to represent the gross rent change
and the shelter rent change. This is done HMFA is listed alphabetically within its
by applying data from the Consumer respective CBSA. Each AAF applies to
Expenditure Survey (CEX) on the a specific geographic area and to units
DEPARTMENT OF THE INTERIOR
percentage of renters who pay for heat of all bedroom sizes. AAFs are
(a proxy for the percentage of renters provided: Office of the Assistant Secretary Water
who pay shelter rent) and also American • For separate metropolitan areas, and Science; Notice of Availability of
Community Survey (ACS) data on the including HMFAs and counties that are the Revised Central Utah Water
ratio of utilities to rents. For Puerto currently designated as non- Conservancy District National
Rico, the Puerto Rico Community metropolitan, but are part of the Environmental Policy Act Handbook
Survey (PRCS) is used to determine the metropolitan area defined in the local
ratio of utilities to rents, resulting in AGENCY: Central Utah Project
CPI survey. Completion Act Office, Interior.
different AAFs for some metropolitan
areas in Puerto Rico.3 • For the four Census Regions (to be ACTION: Notice.
used for those metropolitan and non-
Survey Data Used To Produce AAFs metropolitan areas that are not covered SUMMARY: The Central Utah Project
The rent and fuel and utilities by a CPI city-survey). Completion Act Office and the Central
inflation factors for large metropolitan AAFs use the same OMB metropolitan Utah Water Conservancy District are
areas and Census regions are based on area definitions, as revised by HUD, that announcing the availability of their
changes in the rent of primary residence are used for the FY 2016 FMRs. revised National Environmental Policy
and fuels and utilities CPI indices from Act (NEPA) Handbook. Revisions were
2013 to 2014. The CEX data used to Area Definitions made to this handbook in response to
decompose the contract rent inflation new requirements and practices
factor into gross rent and shelter rent To make certain that they are using contained in the Department of the
inflation factors come from a special the correct AAFs, users should refer to Interior’s 2008 NEPA Regulations and
tabulation of 2013 CEX survey data the Area Definitions Table section at Council on Environmental Quality
produced for HUD for the purpose of http://www.huduser.gov/portal/ guidance issued in support of the
computing AAFs. The utility-to-rent datasets/aaf.html. The Area Definitions Administration’s efforts to modernize
ratio used to produce AAFs comes from Table lists CPI areas in alphabetical Federal agency implementation of
2013 ACS median rent and utility costs. order by state, and the associated NEPA. The revisions were made to
Geographic Areas Census region is shown next to each improve the process for preparing
state name. Areas whose AAFs are efficient and timely environmental
AAFs are produced for all Class A CPI determined by local CPI surveys are reviews under NEPA.
cities (CPI cities with a population of listed first. All metropolitan areas with
1.5 million or more) and for the four ADDRESSES: Copies of the NEPA
local CPI surveys have separate AAF Handbook are available for inspection at
Census Regions. They are applied to schedules and are shown with their
core-based statistical areas (CBSAs), as the following locations:
corresponding county definitions or as • Central Utah Water Conservancy
defined by the Office of Management
metropolitan counties. In the six New District, 355 West University Parkway,
and Budget (OMB), according to how
much of the CBSA is covered by the CPI England states, the listings are for Orem, Utah 84058–7303.
city-survey. If more than 75 percent of counties or parts of counties as defined • Department of the Interior, Central
the CBSA is covered by the CPI city- by towns or cities. The remaining Utah Project Completion Act Office, 302
survey, the AAF that is based on that counties use the CPI for the Census East 1860 South, Provo, Utah 84606.
CPI survey is applied to the whole Region and are not separately listed in In addition, the document is available
CBSA and to any HUD-defined the Area Definitions Table at http:// at www.cuwcd.com and
metropolitan area, called the ‘‘HUD www.huduser.gov/portal/datasets/ www.cupcao.gov.
Metro FMR Area’’ (HMFA), within that aaf.html.
FOR FURTHER INFORMATION CONTACT:
CBSA. If the CBSA is not covered by a Puerto Rico uses its own AAFs Additional information may be obtained
CPI city-survey, the CBSA uses the calculated from the Puerto Rico CPI as by contacting Mr. W. Russ Findlay,
relevant regional CPI factor. Almost all adjusted by the PRCS, the Virgin Islands Central Utah Project Completion Act
non-metropolitan counties use regional uses the South Region AAFs and the Office, 302 East 1860 South, Provo, Utah
CPI factors.4 For areas assigned the Pacific Islands uses the West Region 84606–7317; by email to wfindlay@
3 The formulas used to produce these factors can
AAFs. All areas in Hawaii use the AAFs usbr.gov; or by phone at 801–379–1084.
be found in the Annual Adjustment Factors listed next to ‘‘Hawaii’’ in the Tables SUPPLEMENTARY INFORMATION: The
asabaliauskas on DSK3SPTVN1PROD with NOTICES

overview and in the FMR documentation at which are based on the CPI survey for passage of the Central Utah Project
www.HUDUSER.gov. the Honolulu metropolitan area. The
4 There are four non-metropolitan counties that Completion Act in 1992 required the
Pacific Islands use the West Region Central Water Conservancy District
continue to use CPI city updates: Ashtabula County,
OH, Henderson County, TX, Island County, WA, AAFs. (District) to enter into an agreement
and Lenawee County, MI. BLS has not updated the with the Secretary of the Department of
geography underlying its survey for new OMB
metropolitan area definitions and these counties, the 75 percent standard HUD imposes on survey the Interior (Interior) allowing them to
are no longer in metropolitan areas, but they are coverage. These four counties are treated the same be considered a ‘‘Federal Agency’’ for
included as parts of CPI surveys because they meet as metropolitan areas using CPI city data. the purposes of compliance with all

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Document Created: 2016-05-03 00:31:00
Document Modified: 2016-05-03 00:31:00

Category		Regulatory Information
Collection		Federal Register
sudoc Class		AE 2.7: GS 4.107: AE 2.106:
Publisher		Office of the Federal Register, National Archives and Records Administration
Section		Notices
Action		Notice of Fiscal Year (FY) 2016 Annual Adjustment Factors (AAFs).
Contact		Contact Becky Primeaux, Director, Management and Operations Division, Office of Housing Voucher Programs, Office of Public and Indian Housing, 202-708-1380, for questions relating to the Project-Based Certificate and Moderate Rehabilitation programs (not the Single Room Occupancy program); Ann Oliva, Director, Office of Special Needs Assistance Programs, Office of Community Planning and Development, 202-708-4300, for questions regarding the Single Room Occupancy (SRO) Moderate Rehabilitation program; Catherine Brennan, Director, Office of Housing Assistance and Grant Administration, Office of Housing, 202-708-3000, for questions relating to all other Section 8 programs; and Marie Lihn, Economist, Economic and Market Analysis Division, Office of Policy Development and Research, 202-402-5866, for technical information regarding the development of the schedules for specific areas or the methods used for
FR Citation		81 FR 26576