81 FR 80678 - Small Area Fair Market Rents in Housing Choice Voucher Program Values for Selection Criteria and Metropolitan Areas Subject to Small Area Fair Market Rents

DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

Federal Register Volume 81, Issue 221 (November 16, 2016)

Page Range		80678-80679
FR Document		2016-27112

On June 16, 2016, HUD sought comment on applying Small Area Fair Market Rents (Small Area FMRs) to certain metropolitan areas for administration of the Housing Choice Voucher (HCV) program based on certain selection criteria and selection values. Found elsewhere in this issue of the Federal Register is a final rule adopting the use of Smalls Area FMRs for the HCV program and the selection criteria. The final rule also requires HUD to set forth the values used to determine those metropolitan areas that are subject to Small Area FMRs through a Federal Register notice. This notice sets forth the values for the selection criteria and lists the metropolitan areas that will be subject to Small Area FMRs implemented in the Small Area FMRs final rule.

Federal Register, Volume 81 Issue 221 (Wednesday, November 16, 2016)

[Federal Register Volume 81, Number 221 (Wednesday, November 16, 2016)]
[Notices]
[Pages 80678-80679]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2016-27112]


=======================================================================
-----------------------------------------------------------------------

 DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

[Docket No. FR-5855-N-04]


Small Area Fair Market Rents in Housing Choice Voucher Program 
Values for Selection Criteria and Metropolitan Areas Subject to Small 
Area Fair Market Rents

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

ACTION: Notice.

-----------------------------------------------------------------------

SUMMARY: On June 16, 2016, HUD sought comment on applying Small Area 
Fair Market Rents (Small Area FMRs) to certain metropolitan areas for 
administration of the Housing Choice Voucher (HCV) program based on 
certain selection criteria and selection values. Found elsewhere in 
this issue of the Federal Register is a final rule adopting the use of 
Smalls Area FMRs for the HCV program and the selection criteria. The 
final rule also requires HUD to set forth the values used to determine 
those metropolitan areas that are subject to Small Area FMRs through a 
Federal Register notice. This notice sets forth the values for the 
selection criteria and lists the metropolitan areas that will be 
subject to Small Area FMRs implemented in the Small Area FMRs final 
rule.

DATES: Effective: January 17, 2017.

FOR FURTHER INFORMATION CONTACT: For information about this rule, 
contact Peter B. Kahn, Director, Economic and Market Analysis Division, 
Office of Economic Affairs, Office of Policy Development and Research, 
U.S. Department of Housing and Urban Development, 451 7th Street SW., 
Washington, DC 20410, telephone (202) 402-2409; email: 
SAFMR_Rule@hud.gov. The listed telephone number is not a toll-free 
number. Persons with hearing or speech impairments may access this 
number through TTY by calling Federal Relay Service at 1-800-877-8339 
(this is a toll-free number).

SUPPLEMENTARY INFORMATION: 

I. Background

    On June 2, 2015, at 80 FR 31332, HUD published an advance notice of 
final rulemaking (ANPR) entitled ``Establishing a More Effective Fair 
Market Rent (FMR) System; Using Small Area Fair Market Rents (Small 
Area FMRs) in Housing Choice Voucher Program Instead of the Current 
50th Percentile FMRs.'' In this ANPR, HUD announced its intention to 
amend HUD's FMR regulations applicable to the HCV program and sought 
public comment on the use of certain criteria for setting Small Area 
FMRs for the HCV program within certain metropolitan areas.
    On June 16, 2016, at 81 FR 39218, HUD published a proposed rule 
that would require the use of Small Area FMRs in place of the 50th 
percentile rent to address high levels of voucher concentration. The 
proposed rule addressed the issues and suggestions raised by public 
commenters on the ANPR, and in response to public comments proposed new 
criteria for setting Small Area FMRs for the HCV program.
    The proposed regulation provided, in 24 CFR 888.113(c), to set 
Small Area FMRs for metropolitan areas where at least 2,500 HCVs are 
under lease; at least 20 percent of the standard quality rental stock, 
within the metropolitan area, is in small areas (that is ZIP codes) 
where the Small Area FMR is more than 110 percent of the metropolitan 
FMR; and the measure of the percentage of voucher holders living in 
concentrated low-income areas relative to all renters within these 
areas over the entire metropolitan area exceeds 155 percent (or 1.55).
    The proposed regulation also provided, in 24 CFR 888.113(c)(2), 
that ``concentrated low-income areas'' means those census tracts in the 
metropolitan FMR area with a poverty rate of 25 percent or more; or any 
tract in the metropolitan FMR area where more than 50 percent of the 
households earn incomes at less than 60 percent of the area median 
income (AMI) and are designated as Qualified Census Tracts in 
accordance with section 42 of the Internal Revenue Code (26 U.S.C. 42). 
Lastly, the proposed regulation provided, in 24 CFR 888.113(c)(3), that 
if a metropolitan area meets the criteria for application of Small Area 
FMRs to the area, all PHAs administering HCV programs in that area will 
be required to use Small Area FMRs.
    In addition to setting forth new proposed criteria, HUD 
specifically requested comment on whether HUD should codify in 
regulatory text the selection parameters for Small Area FMRs or if they 
should be incorporated into each annual FMR notice, subject to public 
comment, to provide HUD, PHAs, and other stakeholders with flexibility 
to offer changes to the selection parameters. HUD also asked for 
comments on the criteria that HUD selected for determining which 
metropolitan areas should be impacted by the shift to a Small Area FMR 
instead of the current 50th percentile policy.
    The final rule, found elsewhere in the Federal Register, responded 
to the

[[Page 80679]]

public comments received on the questions posed by HUD and sets forth 
new selection criteria for HUD to use in determining which metropolitan 
areas would be impacted by the shift to a Small Area FMR and provides 
that the criteria values would be set by notice in the Federal 
Register. Specifically, HUD codified in the final rule the selection 
parameters in regulatory text for setting Small Area FMRs but provided 
that HUD would set the selection values through this Federal Register 
notice and that subsequent Small Area FMR Area designations will be 
specified through Federal Register notice with opportunity for public 
comment as new Small Area FMR designations are made.
    In response to comments, HUD also adds two new selection criteria 
to those provided in the proposed rule. First, HUD adds the vacancy 
rate of an area as a criterion to the selection parameters for Small 
Area FMRs and excludes metropolitan areas with a certain ACS vacancy 
rate from being designated a Small Area FMR area. Second, HUD adds a 
threshold for the voucher concentration ratio to better target 
communities where voucher concentration is most severe. Consequently, 
in addition to the voucher concentration ratio included in the proposed 
rule, the final rule also requires the numerator of this measure, the 
concentration of voucher holders within concentrated low income areas, 
to meet a minimum standard level.

II. Selection Values for Selecting Small Area FMRs

    Through this notice, HUD is setting the selection values to 
determine the first-set of metropolitan FMR areas subject to Small Area 
FMRs for use in the administration of tenant-based assistance under the 
HCV program. Metropolitan FMR areas that meet the following requirement 
will be subject to Small Area FMRs consistent with 24 CFR 888.113(c):
    (i) There are at least 2,500 HCV under lease;
    (ii) At least 20 percent of the standard quality rental stock, 
within the metropolitan FMR area is in small areas (ZIP codes) where 
the Small Area FMR is more than 110 percent of the metropolitan FMR;
    (iii) The percentage of voucher families living in concentrated low 
income areas relative to all renters within the area must be at least 
25 percent;
    (iv) The measure of the percentage of voucher holders living in 
concentrated low income areas relative to all renters within these 
areas over the entire metropolitan area exceeds 155 percent (or 1.55); 
and
    (v) The vacancy rate for the metropolitan area is higher than 4 
percent. The vacancy rate is calculated using data from the 1-year 
American Community Survey (ACS) tabulations, the vacancy rate is the 
number of Vacant For Rent Units divided by the sum of the number of 
Vacant For Rent Units, the number of Renter Occupied Units, and the 
number of Rented, not occupied units. The vacancy rate will be 
calculated from the 3 most current ACS 1 year datasets available and 
average the 3 values.
    The metropolitan FMR Areas that meet these requirements are as 
follows:

Atlanta-Sandy Springs-Marietta, GA HUD Metro FMR Area
Bergen-Passaic, NJ HUD Metro FMR Area
Charlotte-Gastonia-Rock Hill, NC-SC HUD Metro FMR Area
Chicago-Joliet-Naperville, IL HUD Metro FMR Area
Colorado Springs, CO HUD Metro FMR Area
Dallas-Plano-Irving, TX Metro Division
Fort Lauderdale-Pompano Beach-Deerfield Beach, FL Metro Division
Fort Worth-Arlington, TX HUD Metro FMR Area
Gary, IN HUD Metro FMR Area
Hartford-West Hartford-East Hartford, CT HUD Metro FMR Area
Jackson, MS HUD Metro FMR Area
Jacksonville, FL HUD Metro FMR Area
Monmouth-Ocean, NJ HUD Metro FMR Area
North Port-Bradenton-Sarasota, FL MSA
Palm Bay-Melbourne-Titusville, FL MSA
Philadelphia-Camden-Wilmington, PA-NJ-DE-MD MSA
Pittsburgh, PA HUD Metro FMR Area
Sacramento-Arden-Arcade-Roseville, CA HUD Metro FMR Area
San Antonio-New Braunfels, TX HUD Metro FMR Area
San Diego-Carlsbad-San Marcos, CA MSA
Tampa-St. Petersburg-Clearwater, FL MSA
Urban Honolulu, HI MSA
Washington-Arlington-Alexandria, DC-VA-MD HUD Metro FMR Area
West Palm Beach-Boca Raton-Delray Beach, FL Metro Division

    Dated: November 1, 2016.
Katherine M. O'Regan,
Assistant Secretary for Policy Development and Research.
[FR Doc. 2016-27112 Filed 11-15-16; 8:45 am]
 BILLING CODE 4210-67-P

80678 Federal Register / Vol. 81, No. 221 / Wednesday, November 16, 2016 / Notices

including those related to aviation DEPARTMENT OF HOUSING AND comment on the use of certain criteria
security programs, the Presidential URBAN DEVELOPMENT for setting Small Area FMRs for the HCV
transition, and cybersecurity. program within certain metropolitan
The session is closed under 5 U.S.C. [Docket No. FR–5855–N–04]
areas.
552b(c)(7)(E) because disclosure of that On June 16, 2016, at 81 FR 39218,
Small Area Fair Market Rents in
information could reveal investigative HUD published a proposed rule that
Housing Choice Voucher Program
techniques and procedures not generally would require the use of Small Area
Values for Selection Criteria and
available to the public, allowing FMRs in place of the 50th percentile
Metropolitan Areas Subject to Small
terrorists and those with interests rent to address high levels of voucher
Area Fair Market Rents
against the United States to circumvent concentration. The proposed rule
the law and thwart the Department’s AGENCY: Office of the Assistant addressed the issues and suggestions
strategic initiatives. In addition, the Secretary for Policy Development and raised by public commenters on the
session is closed pursuant to 5 U.S.C. Research, HUD. ANPR, and in response to public
552b(c)(9)(B) because disclosure of these ACTION: Notice. comments proposed new criteria for
techniques and procedures could setting Small Area FMRs for the HCV
frustrate the successful implementation SUMMARY: On June 16, 2016, HUD program.
of protective measures designed to keep sought comment on applying Small The proposed regulation provided, in
our country safe. Area Fair Market Rents (Small Area 24 CFR 888.113(c), to set Small Area
Participation: Members of the public FMRs) to certain metropolitan areas for FMRs for metropolitan areas where at
will have until 5:00 p.m. EST on administration of the Housing Choice least 2,500 HCVs are under lease; at
Monday, November 28, 2016, to register Voucher (HCV) program based on least 20 percent of the standard quality
to attend the Council meeting on certain selection criteria and selection rental stock, within the metropolitan
December 1, 2016. Due to limited values. Found elsewhere in this issue of area, is in small areas (that is ZIP codes)
availability of seating, admittance will the Federal Register is a final rule where the Small Area FMR is more than
be on a first-come first-serve basis. adopting the use of Smalls Area FMRs 110 percent of the metropolitan FMR;
Participants interested in attending the for the HCV program and the selection and the measure of the percentage of
meeting can contact Mike Miron at criteria. The final rule also requires voucher holders living in concentrated
HSAC@hq.dhs.gov or (202) 447–3135. HUD to set forth the values used to low-income areas relative to all renters
You are required to provide your full determine those metropolitan areas that within these areas over the entire
legal name, date of birth, and company/ are subject to Small Area FMRs through metropolitan area exceeds 155 percent
agency affiliation. The public may a Federal Register notice. This notice (or 1.55).
access the facility via public sets forth the values for the selection The proposed regulation also
transportation or use the public parking criteria and lists the metropolitan areas provided, in 24 CFR 888.113(c)(2), that
garages located near the Wilson Center. that will be subject to Small Area FMRs ‘‘concentrated low-income areas’’ means
Directions to the Wilson Center can be implemented in the Small Area FMRs those census tracts in the metropolitan
found at: http://wilsoncenter.org/ final rule. FMR area with a poverty rate of 25
directions. Members of the public will percent or more; or any tract in the
DATES: Effective: January 17, 2017.
meet at 1:00 p.m. EST at the Wilson metropolitan FMR area where more than
FOR FURTHER INFORMATION CONTACT: For 50 percent of the households earn
Center’s main entrance for sign in and information about this rule, contact
escorting to the meeting room for the incomes at less than 60 percent of the
Peter B. Kahn, Director, Economic and area median income (AMI) and are
public session. Late arrivals after 1:30 Market Analysis Division, Office of designated as Qualified Census Tracts in
p.m. EST will not be permitted access Economic Affairs, Office of Policy accordance with section 42 of the
to the facility. Development and Research, U.S.
Facility Access: You are required to Internal Revenue Code (26 U.S.C. 42).
Department of Housing and Urban Lastly, the proposed regulation
present a valid original government Development, 451 7th Street SW.,
issued ID, to include a State Driver’s provided, in 24 CFR 888.113(c)(3), that
Washington, DC 20410, telephone (202) if a metropolitan area meets the criteria
License or Non-Driver’s Identification 402–2409; email: SAFMR_Rule@
Card, U.S. Government Common Access for application of Small Area FMRs to
hud.gov. The listed telephone number is the area, all PHAs administering HCV
Card (CAC), Military Identification Card not a toll-free number. Persons with
or Person Identification Verification programs in that area will be required to
hearing or speech impairments may use Small Area FMRs.
Card; U.S. Passport, U.S. Border access this number through TTY by In addition to setting forth new
Crossing Card, Permanent Resident Card calling Federal Relay Service at 1–800– proposed criteria, HUD specifically
or Alien Registration Card; or Native 877–8339 (this is a toll-free number). requested comment on whether HUD
American Tribal Document.
Information of Services for SUPPLEMENTARY INFORMATION: should codify in regulatory text the
Individuals with Disabilities: For selection parameters for Small Area
I. Background
information on facilities or services for FMRs or if they should be incorporated
On June 2, 2015, at 80 FR 31332, HUD into each annual FMR notice, subject to
individuals with disabilities, or to
published an advance notice of final public comment, to provide HUD,
request special assistance at the
rulemaking (ANPR) entitled PHAs, and other stakeholders with
meeting, contact Mike Miron at HSAC@
‘‘Establishing a More Effective Fair flexibility to offer changes to the
asabaliauskas on DSK3SPTVN1PROD with NOTICES

hq.dhs.gov or (202) 447–3135 as soon as
Market Rent (FMR) System; Using Small selection parameters. HUD also asked
possible.
Area Fair Market Rents (Small Area for comments on the criteria that HUD
Dated: November 10, 2016. FMRs) in Housing Choice Voucher selected for determining which
Sarah E. Morgenthau, Program Instead of the Current 50th metropolitan areas should be impacted
Executive Director, Homeland Security Percentile FMRs.’’ In this ANPR, HUD by the shift to a Small Area FMR instead
Advisory Council, DHS. announced its intention to amend of the current 50th percentile policy.
[FR Doc. 2016–27539 Filed 11–15–16; 8:45 am] HUD’s FMR regulations applicable to The final rule, found elsewhere in the
BILLING CODE P the HCV program and sought public Federal Register, responded to the

VerDate Sep<11>2014 16:23 Nov 15, 2016 Jkt 241001 PO 00000 Frm 00048 Fmt 4703 Sfmt 4703 E:\FR\FM\16NON1.SGM 16NON1

Document Created: 2016-11-16 00:57:43
Document Modified: 2016-11-16 00:57:43

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.
Dates		Effective: January 17, 2017.
Contact		For information about this rule, contact Peter B. Kahn, Director, Economic and Market Analysis Division, Office of Economic Affairs, Office of Policy Development and Research, U.S. Department of Housing and Urban Development, 451 7th Street SW., Washington, DC 20410, telephone (202) 402-2409; email: [email protected] The listed telephone number is not a toll-free number. Persons with hearing or speech impairments may access this number through TTY by calling Federal Relay Service at 1-800-877-8339 (this is a toll-free number).
FR Citation		81 FR 80678