82 FR 51853 - Section 8 Housing Assistance Payments Program-Annual Adjustment Factors, Fiscal Year 2018
DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT Federal Register Volume 82, Issue 215 (November 8, 2017)
Federal Register Volume 82, Issue 215 (November 8, 2017)
| Page Range | 51853-51856 | |
| FR Document | 2017-24330 |
[Federal Register Volume 82, Number 215 (Wednesday, November 8, 2017)] [Notices] [Pages 51853-51856] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2017-24330] ======================================================================= ----------------------------------------------------------------------- DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT [Docket No. FR-6059-N-01] Section 8 Housing Assistance Payments Program--Annual Adjustment Factors, Fiscal Year 2018 AGENCY: Office of the Assistant Secretary for Policy Development and Research, HUD. ACTION: Notice of Fiscal Year (FY) 2018 Annual Adjustment Factors (AAFs). ----------------------------------------------------------------------- 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 2018 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 2018 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. AAFs are distinct from, and do not apply to the same properties as, Operating Cost Adjustment Factors (OCAFs). OCAFs are annual factors used to adjust rents for project-based rental assistance contracts issued under Section 8 of the United States Housing Act of 1937 and renewed under section 515 or section 524 of the Multifamily Assisted Housing Reform and Affordability Act of 1997 (MAHRA). A separate Federal Register Notice, to be published at a later date, will be used in the calculation of the calendar year (CY) 2018 Housing Choice Voucher (HCV) renewal funding for public housing agencies (PHAs). DATES: Applicable November 8, 2017. 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); Norman A. Suchar, Director, Office of Special Needs Assistance Programs, Office of Community Planning and Development, 202-402-5015, for questions regarding the Single Room Occupancy (SRO) Moderate Rehabilitation program; Katherine Nzive, Director, OAMPO Program Administration Office, Office of Multifamily Housing, 202-402-3440, 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 [[Page 51854]] 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. 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. 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), except in the Project-Based Certificate program (Category 3). 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. Housing Choice 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 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) Category 2 programs are not currently 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 Under the PBC program, the PHA and owner must have executed an Agreement to enter a HAP contract before January 16, 2001. The aggregate total term of the PBC HAP contract (the initial and any renewal terms) may not exceed 15 years. Therefore, most PBC HAP contracts have expired (or have been renewed as a project-based voucher contract in accordance with 24 CFR 983.10(b)(1)(ii)). In the case of a PBC HAP contract that is still in effect, the following procedures are used to adjust contract rent: 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] [[Page 51855]] 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.'' \1\ 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 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.\2\ --------------------------------------------------------------------------- \1\ CPI indexes CUUSA103SEHA and CUSR0000SAH2 respectively. \2\ 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. --------------------------------------------------------------------------- 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 2015 to 2016. 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 2016 CEX survey data produced for HUD. The utility-to- rent ratio used to produce AAFs comes from 2015 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) where more than 75 percent of the population 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. All non-metropolitan counties use regional CPI factors, except for those that are in CPI cities, but have been dropped from metropolitan area by OMB definitions (Lenawee County, MI; Ashtabula County, OH; Henderson County, TX; King George County, VA; Island County, WA). For areas assigned the Census Region CPI factor, both metropolitan and non- metropolitan areas receive the same factor. 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 2018 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 [[Page 51856]] 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: November 1, 2017. Todd M. Richardson, Deputy Assistant Secretary, Office of Policy Development, Office of Policy Development and Research. [FR Doc. 2017-24330 Filed 11-7-17; 8:45 am] BILLING CODE 4210-67-P
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allows importers to deposit estimated III. Announcement of Daily and commencing after the effective date of
duties, fees and taxes on a monthly Monthly Statements Being Generated, this notice. AAFs are distinct from, and
basis using ACH. A PMS summarizes Transmitted and Updated in ACE do not apply to the same properties as,
daily statements into a consolidated This document announces that Operating Cost Adjustment Factors
statement each month for a single beginning on December 9, 2017, ACE (OCAFs). OCAFs are annual factors used
monthly payment by the 15th working will be the sole CBP-authorized EDI to adjust rents for project-based rental
day of the month following the month system for generating, transmitting and assistance contracts issued under
of entry or release. CBP last modified updating daily and monthly statements Section 8 of the United States Housing
and clarified the PMS test in a Federal for all entries except reconciliation (type Act of 1937 and renewed under section
Register notice (82 FR 50656) published 09) entries, and that as of that date, ACS 515 or section 524 of the Multifamily
on November 1, 2017. Currently, will be decommissioned for such Assisted Housing Reform and
monthly statements are generated, purposes. Until reconciliation entries Affordability Act of 1997 (MAHRA). A
transmitted and updated in ACS. are filed in ACE, statements for separate Federal Register Notice, to be
reconciliation entries will continue to published at a later date, will be used
II. Transition Into the Automated be generated, transmitted and updated in the calculation of the calendar year
Commercial Environment (ACE) in ACS. Once reconciliation entries are (CY) 2018 Housing Choice Voucher
filed in ACE, ACE will be the sole CBP- (HCV) renewal funding for public
In an effort to modernize the business housing agencies (PHAs).
authorized EDI system for generating,
processes essential to securing U.S.
transmitting and updating all DATES: Applicable November 8, 2017.
borders, facilitating the flow of
statements, and ACS will no longer be FOR FURTHER INFORMATION CONTACT:
legitimate shipments, and targeting a CBP-authorized EDI system for such Contact Becky Primeaux, Director,
illicit goods pursuant to Title VI of the purpose. Management and Operations Division,
North American Free Trade Agreement
Dated: November 3, 2017. Office of Housing Voucher Programs,
Implementation Act (Pub. L. 103–182,
Brenda B. Smith, Office of Public and Indian Housing,
107 Stat. 2057, December 8, 1993),
Executive Assistant Commissioner, Office of 202–708–1380, for questions relating to
commonly known as the Customs
Trade. the Project-Based Certificate and
Modernization Act, or Mod Act, and the Moderate Rehabilitation programs (not
Security and Accountability for Every [FR Doc. 2017–24336 Filed 11–7–17; 8:45 am]
the Single Room Occupancy program);
(SAFE) Port Act of 2006 (Pub. L. 109– BILLING CODE 9111–14–P
Norman A. Suchar, Director, Office of
347, 120 Stat. 1884), CBP developed Special Needs Assistance Programs,
ACE to eventually replace ACS as the Office of Community Planning and
CBP-authorized EDI system. Over the DEPARTMENT OF HOUSING AND
Development, 202–402–5015, for
last several years, CBP has tested ACE URBAN DEVELOPMENT
questions regarding the Single Room
and provided significant public [Docket No. FR–6059–N–01] Occupancy (SRO) Moderate
outreach to ensure that the trade Rehabilitation program; Katherine
community is fully aware of the Section 8 Housing Assistance Nzive, Director, OAMPO Program
transition from ACS to ACE. Payments Program—Annual Administration Office, Office of
On October 13, 2015, CBP published Adjustment Factors, Fiscal Year 2018 Multifamily Housing, 202–402–3440, for
an Interim Final Rule in the Federal AGENCY: Office of the Assistant questions relating to all other Section 8
Register (80 FR 61278) that designated Secretary for Policy Development and programs; and Marie Lihn, Economist,
ACE as a CBP-authorized EDI system, to Research, HUD. Economic and Market Analysis
be effective November 1, 2015. In the ACTION: Notice of Fiscal Year (FY) 2018 Division, Office of Policy Development
Interim Final Rule, CBP stated that ACS Annual Adjustment Factors (AAFs). and Research, 202–402–5866, for
would be phased out and anticipated technical information regarding the
that ACS would no longer be supported SUMMARY: The United States Housing development of the schedules for
for entry and entry summary filing by Act of 1937 requires that certain specific areas or the methods used for
the end of February 2016. Filers were assistance contracts signed by owners calculating the AAFs. The mailing
encouraged to adjust their business participating in the Department’s address for these individuals is:
practices so that they would be prepared Section 8 housing assistance payment Department of Housing and Urban
when ACS was decommissioned. programs provide annual adjustments to Development, 451 7th Street SW.,
monthly rentals for units covered by the Washington, DC 20410. Hearing- or
CBP has developed a staggered contracts. This notice announces FY speech-impaired persons may contact
transition strategy for decommissioning 2018 AAFs for adjustment of contract the Federal Information Relay Service at
ACS to give the trade additional time to rents on the anniversary of those 800–877–8339 (TTY). (Other than the
adjust their business practices. The first assistance contracts. The factors are ‘‘800’’ TTY number, the above-listed
two phases of the transition were based on a formula using residential telephone numbers are not toll free.)
announced in a Federal Register notice rent and utility cost changes from the SUPPLEMENTARY INFORMATION: Tables
published on February 29, 2016 (81 FR most recent annual Bureau of Labor showing AAFs will be available
10264). The third phase was announced Statistics Consumer Price Index (CPI) electronically from the HUD data
in a Federal Register notice published survey. Beginning with the FY 2014 information page at http://
on May 16, 2016 (81 FR 30320). The AAFs and continuing with these FY www.huduser.gov/portal/datasets/
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fourth phase of the transition was 2018 AAFs, the Puerto Rico CPI is used aaf.html.
announced in a Federal Register notice in place of the South Region CPI for all
published on May 23, 2016 (81 FR areas in Puerto Rico. These factors are I. Applying AAFs to Various Section 8
32339). This notice announces a further applied at the anniversary of Housing Programs
transition as CBP is transitioning Assistance Payment (HAP) contracts for AAFs established by this Notice are
statement processing for both daily and which rents are to be adjusted using the used to adjust contract rents for units
monthly statements from ACS to ACE. AAF for those calendar months assisted in certain Section 8 housing
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assistance payment programs during the (Moderate Rehabilitation and Project- Category 3: Section 8 Project-Based
initial (i.e., pre-renewal) term of the Based Certificates). Because of statutory Certificate Program
HAP contract and for all units in the and structural distinctions among the Under the PBC program, the PHA and
Project-Based Certificate program. There various Section 8 programs, there are owner must have executed an
are three categories of Section 8 separate rent adjustment procedures for Agreement to enter a HAP contract
programs that use the AAFs: the three program categories: before January 16, 2001. The aggregate
Category 1: The Section 8 New total term of the PBC HAP contract (the
Construction, Substantial Category 1: Section 8 New Construction,
Substantial Rehabilitation, and initial and any renewal terms) may not
Rehabilitation, and Moderate exceed 15 years. Therefore, most PBC
Rehabilitation programs; Moderate Rehabilitation Programs
HAP contracts have expired (or have
Category 2: The Section 8 Loan In the Section 8 New Construction been renewed as a project-based
Management (LM) and Property and Substantial Rehabilitation voucher contract in accordance with 24
Disposition (PD) programs; and programs, the published AAF factor is
Category 3: The Section 8 Project- CFR 983.10(b)(1)(ii)). In the case of a
applied to the pre-adjustment contract PBC HAP contract that is still in effect,
Based Certificate (PBC) program. rent. In the Section 8 Moderate
Each Section 8 program category uses the following procedures are used to
Rehabilitation program (both the regular adjust contract rent:
the AAFs differently. The specific
application of the AAFs is determined
program and the single room occupancy • Table 2 AAF is always used. The
program) the published AAF is applied Table 1 AAF is not used.
by the law, the HAP contract, and to the pre-adjustment base rent. • Table 2 AAF is always applied
appropriate program regulations or
For Category 1 programs, the Table 1 before determining comparability (rent
requirements.
AAFs are not used in the following AAF factor is applied before reasonableness).
determining comparability (rent • Comparability always applies. If the
cases:
Renewal Rents. AAFs are not used to reasonableness). Comparability applies comparable rent level is lower than the
determine renewal rents after expiration if the pre-adjustment gross rent (pre- rent to owner (contract rent) as adjusted
of the original Section 8 HAP contract adjustment contract rent plus any by application of the Table 2 AAF, the
(either for projects where the Section 8 allowance for tenant-paid utilities) is comparable rent level will be the new
HAP contract is renewed under a above the published Fair Market Rent rent to owner.
(FMR). • The new rent to owner will not be
restructuring plan adopted under 24
If the comparable rent level (plus any reduced below the contract rent on the
CFR part 401; or renewed without
initial difference) is lower than the effective date of the HAP contract.
restructuring under 24 CFR part 402),
except in the Project-Based Certificate contract rent as adjusted by application III. When To Use Reduced AAFs (From
program (Category 3). In general, of the Table 1 AAF, the comparable rent AAF Table 2)
renewal rents are established in level (plus any initial difference) will be
In accordance with Section 8(c)(2)(A)
accordance with the statutory provision the new contract rent. However, the pre-
of the United States Housing Act of
in the Multifamily Assisted Housing adjustment contract rent will not be
1937 (42 U.S.C. 1437f(c)(2)(A)), the AAF
Reform and Affordability Act of 1997 decreased by application of
is reduced by 0.01:
(MAHRA), as amended, under which comparability. • For all tenancies assisted in the
the HAP is renewed. After renewal, In all other cases (i.e., unless the Section 8 Project-Based Certificate
annual rent adjustments will be contract rent is reduced by program.
provided in accordance with MAHRA. comparability): • In other Section 8 programs, for a
Budget-based Rents. AAFs are not • Table 1 AAF is used for a unit unit occupied by the same family at the
used for budget-based rent adjustments. occupied by a new family since the last time of the last annual rent adjustment
For projects receiving Section 8 annual contract anniversary. (and where the rent is not reduced by
subsidies under the LM program (24 • Table 2 AAF is used for a unit application of comparability (rent
CFR part 886, subpart A) and for occupied by the same family as at the reasonableness)).
projects receiving Section 8 subsidies time of the last annual contract The law provides that:
under the PD program (24 CFR part 886, anniversary. Except for assistance under the certificate
subpart C), contract rents are adjusted, program, for any unit occupied by the same
at HUD’s option, either by applying the Category 2: Section 8 Loan Management family at the time of the last annual rental
AAFs or by budget-based adjustments in Program (24 CFR Part 886, Subpart A) adjustment, where the assistance contract
accordance with 24 CFR 886.112(b) and and Property Disposition Program (24 provides for the adjustment of the maximum
24 CFR 886.312(b). Budget-based CFR Part 886, Subpart C) monthly rent by applying an annual
adjustments are used for most Section 8/ adjustment factor and where the rent for a
Category 2 programs are not currently unit is otherwise eligible for an adjustment
202 projects. subject to comparability. Comparability
Housing Choice Voucher Program. based on the full amount of the factor, 0.01
will again apply if HUD establishes shall be subtracted from the amount of the
AAFs are not used to adjust rents in the regulations for conducting factor, except that the factor shall not be
Tenant-Based or the Project-Based comparability studies under 42 U.S.C. reduced to less than 1.0. In the case of
Voucher programs. 1437f(c)(2)(C). assistance under the certificate program, 0.01
II. Adjustment Procedures shall be subtracted from the amount of the
The applicable AAF is determined as
annual adjustment factor (except that the
This section of the notice provides a follows: factor shall not be reduced to less than 1.0),
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broad description of procedures for • Table 1 AAF is used for a unit and the adjusted rent shall not exceed the
adjusting the contract rent. Technical occupied by a new family since the last rent for a comparable unassisted unit of
details and requirements are described annual contract anniversary. similar quality, type and age in the market
in HUD notices H 2002–10 (Section 8 • Table 2 AAF is used for a unit area. 42 U.S.C. 1437f(c)(2)(A).
New Construction and Substantial occupied by the same family as at the Legislative history for this statutory
Rehabilitation, Loan Management, and time of the last annual contract provision states that ‘‘the rationale [for
Property Disposition) and PIH 97–57 anniversary. lower AAFs for non-turnover units is]
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counties use the CPI for the Census the PRT# you are commenting on. We delivered to an address other than those
Region and are not separately listed in will post all comments on http:// listed above (see ADDRESSES).
the Area Definitions Table at http:// www.regulations.gov. This generally
www.huduser.gov/portal/datasets/ means that we will post any personal B. May I review comments submitted by
aaf.html. information you provide us (see the others?
Puerto Rico uses its own AAFs Public Comments section for more Comments, including names and
calculated from the Puerto Rico CPI as information). street addresses of respondents, will be
adjusted by the PRCS, the Virgin Islands Viewing Comments: Comments and available for public review at the street
uses the South Region AAFs and the materials we receive will be available address listed under ADDRESSES. The
Pacific Islands uses the West Region for public inspection on http://
AAFs. All areas in Hawaii use the AAFs public may review documents and other
www.regulations.gov, or by
listed next to ‘‘Hawaii’’ in the Tables information applicants have sent in
appointment, between 8 a.m. and 4
which are based on the CPI survey for p.m., Monday through Friday, except support of the application unless our
the Honolulu metropolitan area. The Federal holidays, at the U.S. Fish and allowing viewing would violate the
Pacific Islands use the West Region Wildlife Service, Division of Privacy Act or Freedom of Information
AAFs. Management Authority, 5275 Leesburg Act. Before including your address,
Pike, Falls Church, VA 22041–3803; phone number, email address, or other
Dated: November 1, 2017.
telephone 703–358–2095. personal identifying information in your
Todd M. Richardson,
comment, you should be aware that
Deputy Assistant Secretary, Office of Policy FOR FURTHER INFORMATION CONTACT:
Joyce Russell, Government Information your entire comment—including your
Development, Office of Policy Development
and Research. Specialist, Division of Management personal identifying information—may
[FR Doc. 2017–24330 Filed 11–7–17; 8:45 am] Authority, U.S. Fish and Wildlife be made publicly available at any time.
BILLING CODE 4210–67–P Service Headquarters, MS: IA; 5275 While you can ask us in your comment
Leesburg Pike, Falls Church, VA 22041– to withhold your personal identifying
3803; telephone 703–358–2023; information from public review, we
DEPARTMENT OF THE INTERIOR facsimile 703–358–2280. cannot guarantee that we will be able to
SUPPLEMENTARY INFORMATION:
do so.
Fish and Wildlife Service II. Background
I. Public Comment Procedures
[Docket No. FWS–HQ–IA–2017–0070;
FXIA16710900000–178–FF09A30000] A. How do I request copies of To help us carry out our conservation
applications or comment on submitted responsibilities for affected species, and
Endangered Species; Marine Mammal applications? in consideration of section 10(a)(1)(A) of
Receipt of Applications for Permit the Endangered Species Act of 1973, as
Send your request for copies of
AGENCY: Fish and Wildlife Service, applications or comments and materials amended (16 U.S.C. 1531 et seq.; ESA),
Interior. concerning any of the applications to and the Marine Mammal Protection Act
the contact listed under FOR FURTHER of 1972, as amended (16 U.S.C. 1361 et
ACTION: Notice of receipt of applications
INFORMATION CONTACT. Please include seq.), along with Executive Order 13576,
for permit.
the Federal Register notice publication ‘‘Delivering an Efficient, Effective, and
SUMMARY: We, the U.S. Fish and date, the PRT-number, and the name of Accountable Government,’’ and the
Wildlife Service, invite the public to the applicant in your request or President’s Memorandum for the Heads
comment on the following applications submission. We will not consider of Executive Departments and Agencies
to conduct certain activities with requests or comments sent to an email of January 21, 2009—Transparency and
endangered species, marine mammals, or address not listed under ADDRESSES. Open Government (74 FR 4685; January
or both. With some exceptions, the If you provide an email address in your 26, 2009), which call on all Federal
Endangered Species Act (ESA) and request for copies of applications, we agencies to promote openness and
Marine Mammal Protection Act will attempt to respond to your request transparency in Government by
(MMPA) prohibit activities with listed electronically. disclosing information to the public, we
species unless Federal authorization is Please make your requests or invite public comment on these permit
acquired that allows such activities. comments as specific as possible. Please applications before final action is taken.
DATES: We must receive comments or confine your comments to issues for Under the MMPA, you may request a
requests for documents on or before which we seek comments in this notice, hearing on any MMPA application
December 8, 2017. and explain the basis for your received. If you request a hearing, give
ADDRESSES: Submitting Comments: You comments. Include sufficient specific reasons why a hearing would be
may submit comments by one of the information with your comments to appropriate. The holding of such a
following methods: allow us to authenticate any scientific or hearing is at the discretion of the
• Federal eRulemaking Portal: http:// commercial data you include. Service Director.
www.regulations.gov. Follow the The comments and recommendations
instructions for submitting comments that will be most useful and likely to III. Permit Applications
on Docket No. FWS–HQ–IA–2017–0070. influence agency decisions are: (1)
• U.S. mail or hand-delivery: Public Those supported by quantitative We invite the public to comment on
ethrower on DSK3G9T082PROD with NOTICES
Comments Processing, Attn: Docket No. information or studies; and (2) Those applications to conduct certain
FWS–HQ–IA–2017–0070; U.S. Fish and that include citations to, and analyses activities with endangered species. With
Wildlife Service Headquarters, MS: of, the applicable laws and regulations. some exceptions, the Endangered
BPHC; 5275 Leesburg Pike, Falls We will not consider or include in our Species Act (16 U.S.C. 1531 et seq.;
Church, VA 22041–3803. administrative record comments we ESA) prohibits activities with listed
When submitting comments, please receive after the close of the comment species unless Federal authorization is
indicate the name of the applicant and period (see DATES) or comments acquired that allows such activities.
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Document Created: 2017-11-08 01:20:31
Document Modified: 2017-11-08 01:20:31
| 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) 2018 Annual Adjustment Factors (AAFs). | |
| Dates | Applicable November 8, 2017. | |
| 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); Norman A. Suchar, Director, Office of Special Needs Assistance Programs, Office of Community Planning and Development, 202-402-5015, for questions regarding the Single Room Occupancy (SRO) Moderate Rehabilitation program; Katherine Nzive, Director, OAMPO Program Administration Office, Office of Multifamily Housing, 202-402-3440, 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 | 82 FR 51853 |
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