83_FR_44814 83 FR 44644 - Fair Market Rents for the Housing Choice Voucher Program, Moderate Rehabilitation Single Room Occupancy Program, and Other Programs Fiscal Year 2019

83 FR 44644 - Fair Market Rents for the Housing Choice Voucher Program, Moderate Rehabilitation Single Room Occupancy Program, and Other Programs Fiscal Year 2019

DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

Federal Register Volume 83, Issue 170 (August 31, 2018)

Page Range44644-44651
FR Document2018-19090

Section 8(c)(1) of the United States Housing Act of 1937 (USHA), as amended by the Housing Opportunity Through Modernization Act of 2016 (HOTMA), requires the Secretary to publish FMRs not less than annually, adjusted to be effective on October 1 of each year. This notice describes the methods used to calculate the FY 2019 FMRs and enumerates the procedures for Public Housing Agencies (PHAs) and other interested parties to request reevaluations of their FMRs, as required by HOTMA. To help inform PHAs' decisions concerning reevaluation requests, this notice briefly addresses HUD's May 30, 2018 notice regarding the use of FMR surveys in the calculation of Renewal Funding Inflation Factors.

Federal Register, Volume 83 Issue 170 (Friday, August 31, 2018)
[Federal Register Volume 83, Number 170 (Friday, August 31, 2018)]
[Notices]
[Pages 44644-44651]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2018-19090]


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DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

[Docket No. FR-6125-N-01]


Fair Market Rents for the Housing Choice Voucher Program, 
Moderate Rehabilitation Single Room Occupancy Program, and Other 
Programs Fiscal Year 2019

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

ACTION: Notice of Fiscal Year (FY) 2019 Fair Market Rents (FMRs) and 
response to public comments on the use of FMR surveys in the 
calculation of renewal funding inflation factors.

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SUMMARY: Section 8(c)(1) of the United States Housing Act of 1937 
(USHA), as amended by the Housing Opportunity Through Modernization Act 
of 2016 (HOTMA), requires the Secretary to publish FMRs not less than 
annually, adjusted to be effective on October 1 of each year. This 
notice describes the methods used to calculate the FY 2019 FMRs and 
enumerates the procedures for Public Housing Agencies (PHAs) and other 
interested parties to request reevaluations of their FMRs, as required 
by HOTMA. To help inform PHAs' decisions concerning reevaluation 
requests, this notice briefly addresses HUD's May 30, 2018 notice 
regarding the use of FMR surveys in the calculation of Renewal Funding 
Inflation Factors.

DATES: 
    Comment Due Date: October 1, 2018.
    Effective Date: The Fair Market Rents are effective October 1, 2018 
unless HUD receives a request for reevaluation of specific area FMRs as 
described below.

ADDRESSES: HUD invites interested persons to submit comments regarding 
the FMRs and to request reevaluation of the FY 2019 FMRs to the 
Regulations Division, Office of General Counsel, Department of Housing 
and Urban Development, 451 Seventh Street SW, Room 10276, Washington, 
DC 20410-0001. Communications must refer to the above docket number and 
title and should contain the information specified in the ``Request for 
Comments/Request for Reevaluation'' section. There are two methods for 
submitting public comments.
    1. Submission of Comments by Mail. Comments or requests for 
reevaluation may be submitted by mail to the Regulations Division, 
Office of General Counsel, Department of Housing and Urban Development, 
451 7th Street SW, Room 10276, Washington, DC 20410-

[[Page 44645]]

0500. Often, submission of comments by mail results in delayed 
delivery. To ensure timely receipt of comments or reevaluation 
requests, HUD recommends that comments or requests submitted by mail be 
submitted at least 2 weeks in advance of the deadline. HUD will make 
all comments or reevaluation requests received by mail available to the 
public at http://www.regulations.gov.
    2. Electronic Submission of Comments. Interested persons may submit 
comments or reevaluation requests electronically through the Federal 
eRulemaking Portal at http://www.regulations.gov. HUD strongly 
encourages commenters to submit comments or reevaluation requests 
electronically. Electronic submission of comments or reevaluation 
requests allows the author maximum time to prepare and submit a comment 
or reevaluation request, ensures timely receipt by HUD, and enables HUD 
to make comments immediately available to the public. Comments or 
reevaluation requests submitted electronically through the http://www.regulations.gov website can be viewed by other submitters and 
interested members of the public. Commenters or reevaluation requestors 
should follow instructions provided on that site to submit comments or 
reevaluation requests electronically.

    Note:  To receive consideration as public comments or 
reevaluation requests, comments or requests must be submitted 
through one of the two methods specified above. Again, all 
submissions must refer to the docket number and title of the notice.

    No Facsimile Comments or Reevaluation Requests. Facsimile (FAX) 
comments or requests for FMR reevaluation are not acceptable.
    Public Inspection of Public Comments and Reevaluation Requests. All 
properly submitted comments and reevaluation requests and 
communications regarding this notice submitted to HUD will be available 
for public inspection and copying between 8 a.m. and 5 p.m. weekdays at 
the above address. Due to security measures at the HUD Headquarters 
building, an advance appointment to review the public comments and 
reevaluation requests must be scheduled by calling the Regulations 
Division at 202-708-3055 (this is not a toll-free number). Individuals 
with speech or hearing impairments may access this number through TTY 
by calling the Federal Relay Service at 800-877-8339 (toll-free 
number). Copies of all comments and reevaluation requests submitted are 
available for inspection and downloading at http://www.regulations.gov.
    Electronic Data Availability. This Federal Register notice will be 
available electronically from the HUD User page at https://www.huduser.gov/portal/datasets/fmr.html. Federal Register notices also 
are available electronically at https://www.federalregister.gov/ the 
U.S. Government Printing Office website. Complete documentation of the 
methods and data used to compute each area's FY 2019 FMRs is available 
at https://www.huduser.gov/portal/datasets/fmr.html#2019_query. FY 2019 
FMRs are available in a variety of electronic formats at https://www.huduser.gov/portal/datasets/fmr.html. FMRs may be accessed in PDF 
as well as in Microsoft Excel. Small Area FMRs for all metropolitan FMR 
areas are available in Microsoft Excel format at: http://www.huduser.gov/portal/datasets/fmr/smallarea/index.html.

FOR FURTHER INFORMATION CONTACT: For technical information on the 
methodology used to develop FMRs or a listing of all FMRs, please call 
the HUD USER information line at 800-245-2691 or access the information 
on the HUD USER website at http://www.huduser.gov/portal/datasets/fmr.html. FMRs are listed at the 40th or 50th percentile in Schedule B. 
For informational purposes, 40th percentile rents for the areas with 
50th percentile FMRs will be provided in the HUD FY 2019 FMR 
documentation system at https://www.huduser.gov/portal/datasets/fmr.html#2019_query and 50th percentile rents for all FMR areas will be 
published at http://www.huduser.gov/portal/datasets/50per.html.
    Questions related to use of FMRs or voucher payment standards 
should be directed to the respective local HUD program staff. Questions 
on how to conduct FMR surveys may be addressed to Marie L. Lihn or 
Peter B. Kahn of the Economic and Market Analysis Division, Office of 
Economic Affairs, Office of Policy Development and Research at HUD 
headquarters, 451 7th Street SW, Room 8208, Washington, DC 20410; 
telephone number 202-402-2409 (this is not a toll-free number), or via 
email at [email protected]. Persons with hearing or speech impairments 
may access HUD numbers through TTY by calling the Federal Relay Service 
at 800-877-8339 (toll-free number).

SUPPLEMENTARY INFORMATION: 

I. Background

    Section 8 of the USHA (42 U.S.C. 1437f) authorizes housing 
assistance to aid lower-income families in renting safe and decent 
housing. Housing assistance payments are limited by FMRs established by 
HUD for different geographic areas. In the Housing Choice Voucher (HCV) 
program, the FMR is the basis for determining the ``payment standard 
amount'' used to calculate the maximum monthly subsidy for an assisted 
family. See 24 CFR 982.503. HUD also uses the FMRs to determine initial 
renewal rents for some expiring project-based Section 8 contracts, 
initial rents for housing assistance payment contracts in the Moderate 
Rehabilitation Single Room Occupancy program, rent ceilings for rental 
units in both the HOME Investment Partnerships program and the 
Emergency Solution Grants program, calculation of maximum award amounts 
for Continuum of Care recipients and the maximum amount of rent a 
recipient may pay for property leased with Continuum of Care funds, and 
calculation of flat rents in Public Housing units. In general, the FMR 
for an area is the amount that would be needed to pay the gross rent 
(shelter rent plus utilities) of privately owned, decent, and safe 
rental housing of a modest (non-luxury) nature with suitable amenities 
and is typically set at the 40th percentile of the distribution of 
gross rents. HUD's FMR calculations represent HUD's best effort to 
estimate the 40th percentile gross rent paid by recent movers into 
standard quality units in each FMR area. In addition, all rents 
subsidized under the HCV program must meet reasonable rent standards.
    As of October 2, 2000, HUD required FMRs to be set at the 50th 
percentile for areas where HUD determined higher FMRs were needed to 
help families assisted under certain HUD programs find and lease decent 
and affordable housing (65 FR 58870). On November 16, 2016, HUD 
published a Final Rule entitled ``Establishing a More Effective Fair 
Market Rent System; Using Small Area Fair Market Rents in the Housing 
Choice Voucher Program Instead of the Current 50th Percentile FMRs'' 
(Small Area FMR final rule) (81 FR 80567), with an effective date of 
January 17, 2017. The Small Area FMR final rule eliminates the 50th 
percentile FMR provisions in the FMR regulations (24 CFR 888.113) \1\ 
and provides that areas

[[Page 44646]]

currently designated as 50th percentile areas remain 50th percentile 
areas until their current 3-year eligibility period expires. At the end 
of the 3-year eligibility period, these areas revert to 40th percentile 
FMR status. If PHAs in areas converting from 50th percentile FMRs to 
40th percentile FMRs meet the deconcentration criteria specified in 24 
CFR 982.503(f), available at: https://www.thefederalregister.org/fdsys/pkg/CFR-2016-title24-vol4/pdf/CFR-2016-title24-vol4-sec982-503.pdf, they may 
petition HUD to maintain payment standards based on 50th percentile 
rents on that basis.
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    \1\ Separately from the Small Area FMR regulations, HUD also 
calculates and posts 50th percentile rent estimates for the purposes 
of Success Rate Payment Standards, as defined at 24 CFR 982.503(e) 
(estimates available at: http://www.huduser.gov/portal/datasets/50per.html), which policy was not changed by the Small Area FMR 
rule.
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    The following areas completed their 3 years of 50th percentile 
eligibility in FY 2018 and will revert to 40th percentile FMR status in 
FY 2019:

 FY 2018 50th-Percentile FMR Areas Reverting to 40th Percentile FMRs in
                                 FY 2019
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Baltimore-Columbia-Towson, MD MSA.........  Philadelphia-Camden-
                                             Wilmington, PA-NJ-DE-MD.
Washington, DC-VA-MD HUD Metro FMR Area...  West Palm Beach-Boca Raton,
                                             FL HUD Metro FMR Area.
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    The following is a list of FMR areas that retain 50th percentile 
FMRs for FY 2019, along with the year that they will revert to 40th 
percentile status:

    FY 2019 50th-Percentile FMR Areas With Year of Reversion to 40th
                             Percentile FMRs
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Bergen-Passaic, NJ HUD Metro FMR Area........................       2020
Spokane, WA HUD Metro FMR Area...............................       2020
San Diego-Carlsbad-San Marcos, CA MSA........................       2020
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II. Procedures for the Development of FMRs

    Section 8(c)(1) of the USHA, as amended by the Housing Opportunity 
Through Modernization Act of 2016 (HOTMA) (Pub. L. 114-201, approved 
July 29, 2016), requires the Secretary of HUD to publish FMRs not less 
than annually. Section 8(c)(1)(A) states that each FMR ``shall be 
adjusted to be effective on October 1 of each year to reflect changes, 
based on the most recent available data trended so the rentals will be 
current for the year to which they apply . . .'' Section 8(c)(1)(B) 
requires that HUD publish, not less than annually, new FMRs on the 
World Wide Web or in any other manner specified by the Secretary, and 
that HUD must also notify the public of when it publishes FMRs by 
Federal Register notice. After notification, the FMRs ``shall become 
effective no earlier than 30 days after the date of such publication,'' 
and HUD must provide a procedure for the public to comment and request 
a reevaluation of the FMRs in a jurisdiction before the FMRs become 
effective. Consistent with the statute, HUD is issuing this notice to 
notify the public that FY 2019 FMRs are available at https://www.huduser.gov/portal/datasets/fmr.html and will become effective on 
October 1, 2018. This notice also provides procedures for FMR 
reevaluation requests.

III. FMR Methodology

    This section provides a brief overview of how HUD computes the FY 
2019 FMRs. HUD is making no changes to the estimation methodology for 
FMRs as used by HUD for the FY 2018 FMRs. The only difference is the 
use of more recent data. For complete information on how HUD determines 
FMR areas, and on how HUD derives each area's FMRs, see the online 
documentation at https://www.huduser.gov/portal/datasets/fmr.html#2019_query.
    In conjunction with the use of 2016 American Community Survey (ACS) 
data, HUD has implemented the following geography changes: Effective 
May 1, 2016, Garfield County, Oklahoma became the metropolitan area of 
Enid, OK metropolitan statistical area (MSA). In addition, HUD changed 
from two separate county-based HUD Metro FMR Areas (HMFA) (Kalawao 
County, HI HMFA and Maui County, HI HMFA) to a two county MSA, the 
Kahului-Wailuku-Lahaina, HI MSA due to extremely limited data available 
for Kalawao County, HI.

A. Base Year Rents

    For FY 2019 FMRs, HUD uses the U.S. Census Bureau's 5-year ACS data 
collected between 2012 and 2016 (released in December 2017) as the base 
rents for the FMR calculations. In order to improve the statistical 
reliability of the ACS data used in the FMR calculations, HUD pairs a 
``margin of error'' test \2\ with an additional test based on the 
number of survey observations supporting the estimate, beginning with 
the FY 2018 FMRs and continuing with the FY 2019 FMRs. The Census 
Bureau does not provide HUD with an exact count of the number of 
observations supporting the ACS estimate; rather, the Census Bureau 
provides HUD with categories of the number of survey responses 
underlying the estimate, including whether the estimate is based on 
more than 100 observations. Using these categories, HUD requires that, 
in addition to the ``margin of error'' test, ACS rent estimates must be 
based on at least 100 observations in order to be used as base rents.
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    \2\ HUD's margin of error test requires that the margin of error 
of the ACS estimate is less than half the size of the estimate 
itself.
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    For areas in which the 5-year ACS data for two-bedroom, standard 
quality gross rents do not pass the statistical reliability tests 
(i.e., have a margin of error ratio greater than 50 percent or fewer 
than 100 observations), HUD will use an average of the base rents over 
the three most recent years (provided that there is data available for 
at least two of these years),\3\ or if such data is not available, 
using the two-bedroom rent data within the next largest geographic 
area, which for a non-metropolitan area would be the state non-metro 
area rent data.
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    \3\ For FY 2019, the three years of ACS data in question are 
2014, 2015 and 2016. The 2014 data are adjusted to be denominated in 
2016 dollars using the growth in CPI-based gross rents measured 
between 2014 and 2016. Similarly, the 2015 gross rent data is 
adjusted to 2016 denominated dollars using the growth in CPI-based 
gross rents measured between 2015 and 2016.
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    Since FY 2012, HUD has updated base rents each year based on new 5-
year data, for which HUD used 2005-2009 ACS data. HUD is also updating 
base rents for Puerto Rico FMRs using data collected through the Puerto 
Rico Community Surveys (PRCS) between 2012 and 2016. HUD first updated 
the Puerto Rico base rents in FY 2014 based on 2007-2011 PRCS data 
collected through the ACS program.
    HUD historically based FMRs on gross rents for recent movers (those 
who have moved into their current residence in the last 24 months) 
measured directly from decennial census long form survey responses. 
However, due to the way the 5-year ACS data are constructed, HUD 
developed a new method for calculating recent-mover FMRs in FY 2012, 
which HUD continues to use in FY 2019: HUD assigns all areas a base 
rent, which is the two-bedroom standard quality 5-year gross rent 
estimate from the ACS; then, because HUD's regulations mandate that 
FMRs must be published as recent mover gross rents, HUD applies a 
recent mover factor to the base rents assigned from the 5-year ACS 
data.\4\ The calculation of the recent mover factor is described below.
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    \4\ HUD's regulations incorporate recent mover data into FMR 
calculations because the gross rents of those who most recently 
moved into their units likely depicts the most current market 
conditions observable through the ACS. Rents paid by renters 
renewing existing leases may not reflect the most current market 
conditions, in part because these renters may have clauses within 
their leases that predetermine the annual increases in rents paid 
(i.e., rent escalator clauses).

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[[Page 44647]]

B. Recent Mover Factor

    Following the assignment of the standard quality two-bedroom rent 
described above, HUD applies a recent mover factor to these rents. HUD 
calculates the recent mover factor as the change between the 5-year 
2012-2016 standard quality two-bedroom gross rent and the 1-year 2016 
recent mover gross rent for the recent mover factor area. HUD does not 
allow recent mover factors to lower the standard quality base rent; 
therefore, if the 5-year standard quality rent is larger than the 
comparable 1-year recent mover rent, the recent mover factor is set to 
1.
    The calculation of the recent mover factor for FY 2019 continues 
with the modifications first applied to the FY 2018 FMRs. Similar to 
the statistical reliability requirements for base rents, for a recent 
mover gross rent estimate to be considered statistically reliable, the 
estimate must have a margin of error ratio that is less than 50 
percent, and the estimate must be based on 100 or more observations.
    When an FMR area does not have statistically reliable two-bedroom 
recent mover data, the ``all-bedroom'' \5\ 1-year recent mover ACS data 
for the FMR area is tested for statistical reliability. An ``all-
bedroom'' recent mover factor from the FMR area will be used, if 
statistically reliable, before substituting a two-bedroom recent mover 
factor from the next larger geography. Incorporating ``all-bedroom'' 
rents into the recent mover factor calculation when statistically 
reliable two-bedroom data is not available preserves the use of local 
information to the greatest extent possible.
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    \5\ ``All-bedroom'' refers to estimates aggregated together 
regardless of the number of bedrooms in the dwelling unit.
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    However, where statistically reliable ``all-bedroom'' data is not 
available, HUD will continue to base FMR areas' recent mover factors on 
larger geographic areas, following the same procedures used 
historically: HUD tests data from differently sized geographic areas 
from small to large, and bases the recent mover factor on the first 
statistically reliable recent mover rent estimate in the geographic 
hierarchy listed below.
     For metropolitan areas that are subareas of larger 
metropolitan areas, the order is the FMR area, metropolitan area, 
aggregated metropolitan parts of the state, and state.
     For metropolitan areas that are not divided, the order is 
the FMR area, aggregated metropolitan parts of the state, and the 
state.
     In non-metropolitan areas, the order is the FMR area, 
aggregated non-metropolitan parts of the state, and the state.
    The process for calculating each area's recent mover factor is 
detailed in the FY 2019 FMR documentation system available at: https://www.huduser.gov/portal/datasets/fmr.html#2019_query. Applying the 
recent mover factor to the standard quality base rent produces an ``as 
of'' 2016 recent mover two-bedroom gross rent for the FMR area.

C. Other Rent Survey Data

    HUD calculated base rents for the insular areas using the 2010 
decennial census of American Samoa, Guam, the Northern Mariana Islands, 
and the Virgin Islands beginning with the FY 2016 FMRs.\6\ This 2010 
base year data is updated through 2016 for the FY 2019 FMRs using 
national ACS data.
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    \6\ The ACS is not conducted in the Pacific Islands (Guam, 
Northern Marianas and American Samoa) or the US Virgin Islands. As 
part of the 2010 Decennial Census, the Census Bureau conducted 
``long-form'' sample surveys for these areas. The results gathered 
by this long form survey have been incorporated into the FY 2019 
FMRs.
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    HUD does not use ACS data to establish the base rent or recent 
mover factor for 10 areas where the FY 2018 FMR was adjusted based on 
the following survey data:
     Survey data from 2016 is used to adjust the FMR for 
Portland, ME.
     Survey data from 2017 is used to adjust the FMRs for Santa 
Rosa, CA; Seattle-Bellevue, WA HMFA; Hood River County, OR; Wasco 
County, OR; Hawaii County, HI; Jonesboro, AR HMFA; Urban Honolulu, HI 
MSA; and Santa Maria-Santa Barbara, CA MSA.
     Survey data from 2018 is used to adjust the FMR for Santa 
Cruz-Watsonville, CA MSA.
    For larger metropolitan areas that have valid ACS one-year recent 
mover data, survey data may not be any older than the midpoint of the 
calendar year for the ACS one-year data. Since the ACS one-year data 
used for the FY 2019 FMRs is from 2016, larger areas may not use survey 
data collected before June 30, 2016, for the FY 2019 FMRs. Smaller 
areas without 1-year ACS data, may continue to use local survey data 
until the mid-point of the 5-year ACS data is more recent than the 
local survey.\7\
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    \7\ The 2013-2017 5-Year ACS data and the 2017 1-Year ACS data 
will be used to calculate the FY 2020 FMRs. We did discontinue the 
use of survey in Kauai and Maui counties in HI and in Vallejo-
Fairfield, CA even though these surveys did not meet the age 
requirements because the data provided did not meet our current 
tighter statistical standards enacted for the FY 2018 FMRs. In all 
cases the FMRs for FY 2019 would have been lower than for FY 2018 
and in some cases, much lower.
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D. Updates From 2016 to 2017 and Forecast to FY 2019

    HUD updates the ACS-based ``as of'' 2016 rent through the end of 
2017 using the annual change in gross rents measured through the 
Consumer Price Index (CPI) from 2016 to 2017 (CPI update factor). As in 
previous years, HUD uses local CPI data coupled with Consumer 
Expenditure Survey data for FMR areas with at least 75 percent of their 
population within Class A metropolitan areas covered by local CPI data. 
In FMR areas that do not meet this criterion, including Class B and C 
size metropolitan areas and non-metropolitan areas, HUD uses CPI data 
aggregated at the Census region level. Additionally, HUD is using CPI 
data collected locally in Puerto Rico as the basis for CPI adjustments 
from 2016 to 2017 for all Puerto Rico FMR areas.
    Following the application of the appropriate CPI update factor, HUD 
trends the gross rent estimate from 2017 to FY 2019 using a national 
forecast of expected growth in gross rents. This forecast produces ``as 
of'' FY 2019 FMRs.

E. Bedroom Rent Adjustments

    HUD updates the bedroom ratios used in the calculation of FMRs 
annually. The bedroom ratios which HUD used in the calculation of FY 
2019 FMRs have been updated using average data from three 5-year ACS 
data series (2010-2014, 2011-2015, and 2012-2016). The bedroom ratio 
methodology used in this update is unchanged from previous calculations 
using 2000 Census data. HUD only uses estimates with a margin of error 
ratio of less than 50 percent. If an area does not have reliable 
estimates in at least two of the previous three ACS releases, bedroom 
ratios for the area's larger parent geography are used.
    HUD uses two-bedroom units for its primary calculation of FMR 
estimates. This is generally the most common size of rental unit and, 
therefore, the most reliable to survey and analyze. After estimating 
two-bedroom FMRs, HUD calculates bedroom ratios for each FMR area which 
relate the prices of smaller and larger units to the cost of two-
bedroom units. To prevent illogical results in particular FMR areas, 
HUD establishes bedroom interval ranges which set upper and lower 
limits for bedroom ratios nationwide, based on an analysis of the range 
of such intervals for all areas with large enough samples to permit 
accurate bedroom ratio determinations.

[[Page 44648]]

    In the calculation of FY 2019 FMR estimates, HUD set the bedroom 
interval ranges as follows: Efficiency FMRs are constrained to fall 
between 0.64 and 0.85 of the two-bedroom FMR; one-bedroom FMRs must be 
between 0.76 and 0.87 of the two-bedroom FMR; three-bedroom FMRs (prior 
to the adjustments described below) must be between 1.15 and 1.33 of 
the two-bedroom FMR; and four-bedroom FMRs (again, prior to adjustment) 
must be between 1.26 and 1.63 of the two-bedroom FMR. Given that these 
interval ranges partially overlap across unit bedroom counts, HUD 
further adjusts bedroom ratios for a given FMR area, if necessary, to 
ensure that higher bedroom-count units have higher rents than lower 
bedroom-count units within that area. The bedroom ratios for Puerto 
Rico follow these constraints.
    HUD also further adjusts the rents for three-bedroom and larger 
units to reflect HUD's policy to set higher rents for these units.\8\ 
This adjustment is intended to increase the likelihood that the largest 
families, who have the most difficulty in leasing units, will be 
successful in finding eligible program units. The adjustment adds 8.7 
percent to the unadjusted three-bedroom FMR estimates and adds 7.7 
percent to the unadjusted four-bedroom FMR estimates.
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    \8\ As mentioned above, HUD applies the interval ranges for the 
three-bedroom and four-bedroom FMR ratios prior to making these 
adjustments. In other words, the adjusted three- and four-bedroom 
FMRs can exceed the interval ranges, but the unadjusted FMRs cannot.
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    HUD derives FMRs for units with more than four bedrooms by adding 
15 percent to the four-bedroom FMR for each extra bedroom. For example, 
the FMR for a five-bedroom unit is 1.15 times the four-bedroom FMR, and 
the FMR for a six-bedroom unit is 1.30 times the four-bedroom FMR. 
Similarly, HUD derives FMRs for single-room occupancy units by 
subtracting 25 percent from the zero-bedroom FMR (i.e., they are set at 
0.75 times the zero-bedroom (efficiency) FMR).\9\
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    \9\ As established in the interim rules implementing the 
provisions of the Quality Housing and Work Responsibility Act of 
1998 (Title V of the FY 1999 HUD Appropriations Act; Pub. L. 105-
276). In 24 CFR 982.604.
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F. Limit on FMR Decreases

    Within the Small Area FMR final rule published on November 16, 
2016, HUD amended 24 CFR 888.113 to include a limit on the amount that 
FMRs may annually decrease. The current year's FMRs resulting from the 
application of the bedroom ratios, as discussed in section (E) above, 
may be no less than 90 percent of the prior year's FMRs for units with 
the same number of bedrooms. Accordingly, if the current year's FMRs 
are less than 90 percent of the prior year's FMRs as calculated by the 
above methodology, HUD sets the current year's FMRs equal to 90 percent 
of the prior year's FMRs. For areas where use of Small Area FMRs in the 
administration of their voucher programs is required, the FY 2019 Small 
Area FMRs may be no less than 90 percent of the FY 2018 Small Area 
FMRs. For all other metropolitan areas, for which Small Area FMRs are 
calculated so that they may be used for other allowable purposes if 
desired (e.g., exception payment standards, public housing flat rents), 
the FY 2019 Small Area FMRs may be no less than 90 percent of the 
greater of the FY 2018 metropolitan area-wide FMRs or the applicable FY 
2018 Small Area FMR.

G. Other Limits on FMRs

    All FMRs are subject to a state or national minimum. HUD calculates 
a population-weighted median two-bedroom 40th percentile rent across 
all non-metropolitan portions of each state, which, for the purposes of 
FMRs, is the state minimum rent. State-minimum rents for each FMR area 
are available in the FY 2019 FMR Documentation System, available at 
https://www.huduser.gov/portal/datasets/fmr.html#2019_query. HUD also 
calculates the population-weighted median two-bedroom 40th percentile 
rent across all non-metropolitan portions of the country, which, for 
the purposes of FMRs, is the national minimum rent. For FY 2019, the 
national minimum rent is $700. The applicable minimum rent for a 
particular area is the lower of the state or national minimum. Each 
area's two-bedroom FMR must be no less than the applicable minimum 
rent.
    As in prior years, Small Area FMRs are subject to a maximum limit. 
HUD limits each two-bedroom Small Area FMR to be no more than 150 
percent of the two-bedroom FMR for the metropolitan area where the ZIP 
code is located.

IV. Manufactured Home Space Surveys

    HOTMA changed the manner in which vouchers are used to subsidize 
manufactured home units. Please see HUD's Notice from January 18, 2017 
(82 FR 5458) for more detailed information concerning the use of 
vouchers for manufactured home units. Due to the nature of these 
changes, HUD will no longer be publishing exception rents for 
Manufactured Home Space pad rents.

V. Small Area FMRs

    PHAs operating the Housing Choice Voucher (HCV) program in the 24 
metropolitan areas identified in the November 16, 2016 Federal Register 
notice ``Small Area Fair Market Rents in Housing Choice Voucher Program 
Values for Selection Criteria and Metropolitan Areas Subject to Small 
Area Fair Market Rents'' (81 FR 80678) are required to use Small Area 
FMRs unless the PHA has received a temporary exemption from such use; 
HUD has suspended the Small Area FMR designation for the metropolitan 
area under 24 CFR 888.113(c)(4); or the PHA is a Moving to Work PHA 
with an approved alternative payment standard policy. For more 
information on the process of obtaining a temporary exemption or area-
wide suspension, please see PIH Notice 2018-01: Guidance on Recent 
Changes in Fair Market Rent (FMR), Payment Standard, and Rent 
Reasonableness Requirements in the Housing Choice Voucher Program, item 
(9) beginning on page 13, available at: https://www.hud.gov/sites/dfiles/PIH/documents/PIH-2018-01.pdf. Small Area FMRs for all 
metropolitan areas are listed in the Schedule B addendum. Other 
metropolitan PHAs interested in using Small Area FMRs in the operation 
of their Housing Choice Voucher program must contact their local HUD 
field office to request approval from HUD.
    In the FY 2018 FMR Federal Register notice (82 FR 41637), HUD 
announced changes in the way Small Area FMRs are calculated and 
continues this change for the FY 2019 Small Area FMRs. HUD calculates 
Small Area FMRs directly from the standard quality gross rents provided 
to HUD by the Census Bureau for ZIP Code Tabulation Areas (ZCTAs), when 
such data is statistically reliable, instead of using the current rent 
ratio calculation. The ZCTA two-bedroom equivalent 40th percentile 
gross rent is analogous to the standard quality base rents set for 
metropolitan areas and non-metropolitan counties. For each ZCTA with 
statistically reliable gross rent estimates, using the expanded test of 
statistical reliability first used in FY 2018 (i.e., estimates with 
margins of error ratios below 50 percent and based on at least 100 
observations), HUD will calculate a two-bedroom equivalent 40th 
percentile gross rent using the first statistically reliable gross rent 
distribution data from the following data sets (in this order): Two-
bedroom gross rents, one-bedroom gross rents, and three-bedroom gross 
rents. If either the one-bedroom or three-bedroom gross rent data is 
used because the two-

[[Page 44649]]

bedroom gross rent data is not statistically reliable, the one-bedroom 
or three-bedroom 40th percentile gross rent will be converted to a two-
bedroom equivalent rent using the bedroom ratios for the ZCTA's parent 
metropolitan area. To increase stability to these Small Area FMR 
estimates, HUD averages the latest three years of gross rent 
estimates.\10\
---------------------------------------------------------------------------

    \10\ For example, for FY 2019 Small Area FMRs, HUD averages the 
gross rents from 2014, 2015 and 2016 5-Year ACS estimates. The 2014 
and 2015 gross rent estimates would be adjusted to 2016 dollars 
using the metropolitan area's gross rent CPI adjustment factors.
---------------------------------------------------------------------------

    For ZCTAs without usable gross rent data by bedroom size, HUD will 
continue to calculate Small Area FMRs using the rent ratio method 
similar to that which HUD has used in past Small Area FMR calculations. 
To calculate Small Area FMRs using a rent ratio, HUD divides the median 
gross rent across all bedrooms for the small area (a ZIP code) by the 
similar median gross rent for the metropolitan area of the ZIP code. In 
small areas where the median gross rent is not statistically reliable, 
HUD substitutes the median gross rent for the county containing the ZIP 
code in the numerator of the rent ratio calculation. HUD multiplies 
this rent ratio by the current two-bedroom rent for the metropolitan 
area containing the small area to generate the current year two-bedroom 
rent for the small area.
    HUD continues to use a rolling average of ACS data in calculating 
the Small Area FMR rent ratios. HUD believes coupling the most current 
data with previous year's data minimizes excessive year-to-year 
variability in Small Area FMR rent ratios due to sampling variance. 
Therefore, for FY 2019 Small Area FMRs, HUD has updated the rent ratios 
to use an average of the rent ratios calculated from the 2010-2014, 
2011-2015, and 2012-2016 5-year ACS estimates.

VI. Request for Public Comments and FMR Reevaluations

    Although HUD has not changed the FMR estimation method for FY 2019, 
HUD will continue to accept public comments on the methods HUD uses to 
calculate FY 2019 FMRs, including Small Area FMRs, and the FMR levels 
for specific areas. Due to its current funding levels, HUD no longer 
has sufficient resources to conduct local surveys of rents to address 
comments filed regarding the FMR levels for specific areas. PHAs may 
continue to fund such surveys independently, as specified below, using 
administrative fees if they so choose. HUD continually strives to 
calculate FMRs that meet the statutory requirement of using ``the most 
recent available data'' while also serving as an effective program 
parameter.
    PHAs or other interested parties interested in requesting HUD 
reevaluation of their area's FY 2019 FMRs, as provided for under 
section 8(c)(1)(B) of USHA, must follow the following procedures:
    1. By the end of the comment period, such reevaluation requests 
must be submitted publicly through www.regulations.gov or directly to 
HUD as described above. The area's PHA or, in multijurisdictional 
areas, PHA(s) representing at least half of the voucher tenants in the 
FMR area, must agree that the reevaluation is necessary.
    2. In order for a reevaluation to occur, the requestor(s) must 
supply HUD with data more recent than the 2016 American Community 
Survey data used in the calculation of the FY 2019 FMRs. HUD requires 
data on gross rents paid in the FMR area for standard quality rental 
housing units. The data delivered must be sufficient for HUD to 
calculate a 40th and 50th percentile two-bedroom rent. Should this type 
of data not be available, requestors may gather this information using 
the survey guidance available at https://www.huduser.gov/portal/datasets/fmr/NoteRevisedAreaSurveyProcedures.pdf and https://www.huduser.gov/portal/datasets/fmr/PrinciplesforPHA-ConductedAreaRentSurveys.pdf.
    3. On or about October 2, HUD will post a list, at https://www.huduser.gov/portal/datasets/fmr.html of the areas requesting 
reevaluations and where FY 2018 FMRs remain in effect.
    4. Data for reevaluations must be supplied to HUD no later than 
Friday, January 11, 2019. On Monday January 14, 2018, HUD will post at 
https://www.huduser.gov/portal/datasets/fmr.html a listing of the areas 
failing to deliver data and making the FY 2019 FMRs effective in these 
areas.
    5. HUD will use the data delivered by January 11, 2019, to 
reevaluate the FMRs and following the reevaluation, will post revised 
FMRs with an accompanying Federal Register notice stating the revised 
FMRs are available, which will include HUD responses to comments filed 
during the comment period.
    6. Any data supporting a change in FMRs supplied after January 11, 
2019, will be incorporated into FY 2020 FMRs.
    7. PHAs operating in areas where the calculated FMR is lower than 
the published FMR (i.e., those areas where HUD has limited the decrease 
in the annual change in the FMR to 10 percent) may request payment 
standards below the basic range (24 CFR 982.503(d)) and reference the 
``unfloored'' rents (i.e., the unfinalized FMRs calculated by HUD prior 
to application of the 10-percent-decrease limit) depicted in the FY 
2019 FMR Documentation System available at: https://www.huduser.gov/portal/datasets/fmr.html#2019_query.

Questions on how to conduct FMR surveys may be addressed to Marie L. 
Lihn or Peter B. Kahn of the Economic and Market Analysis Division, 
Office of Economic Affairs, Office of Policy Development and Research 
at HUD headquarters, 451 7th Street SW, Room 8208, Washington, DC 
20410; telephone number 202-402-2409 (this is not a toll-free number), 
or via email at [email protected].
    For small metropolitan areas without one-year ACS data and non-
metropolitan counties, HUD has developed a method using mail surveys 
that is discussed on the FMR web page: https://www.huduser.gov/portal/datasets/fmr.html#survey_info. This method allows for the collection of 
as few as 100 one-bedroom, two-bedroom and three-bedroom recent mover 
(tenants that moved in last 24 months) units.
    While HUD has not developed a specific method for mail surveys in 
areas with 1-year ACS data or in areas not covered by ACS data, HUD 
will apply the standard established for Random-Digit Dialing (RDD) 
telephone rent surveys. HUD will evaluate these survey results to 
determine whether to establish a new FMR statistically different from 
the current FMR, which means that the survey confidence interval must 
not include the FMR. The survey should collect results based on 200 
one-bedroom and two-bedroom eligible recent mover units to provide a 
small enough confidence interval for significant results in large 
market mail surveys. Areas with statistically reliable 1-year ACS data 
are not considered to be good candidates for local surveys due to the 
size and completeness of the ACS process.
    Other survey methods are acceptable in providing data to support 
reevaluation requests if the survey method can provide statistically 
reliable, unbiased estimates of the gross rent of the entire FMR area. 
In general, recommendations for FMR changes and supporting data must 
reflect the rent levels that exist within the entire FMR area and 
should be statistically reliable.
    PHAs in non-metropolitan areas may, in certain circumstances, 
conduct surveys of groups of counties. HUD must approve all county-
grouped surveys in advance. PHAs are cautioned

[[Page 44650]]

that the resulting FMRs may not be identical for the counties surveyed; 
each individual FMR area will have a separate FMR based on the 
relationship of rents in that area to the combined rents in the cluster 
of FMR areas. In addition, PHAs are advised that in counties where FMRs 
are based on the combined rents in the cluster of FMR areas, HUD will 
not revise their FMRs unless the grouped survey results show a revised 
FMR statistically different from the combined rent level.
    Survey samples should preferably be randomly drawn from a complete 
list of rental units for the FMR area. If this is not feasible, the 
selected sample must be drawn to be statistically representative of the 
entire rental housing stock of the FMR area. Surveys must include units 
at all rent levels and be representative by structure type (including 
single-family, duplex, and other small rental properties), age of 
housing unit, and geographic location. The current 5-year ACS data 
should be used as a means of verifying if a sample is representative of 
the FMR area's rental housing stock.
    A PHA or contractor that cannot obtain the recommended number of 
sample responses after reasonable efforts should consult with HUD 
before abandoning its survey; in such situations, HUD may find it 
appropriate to relax normal sample size requirements.
    HUD has developed guidance on how to provide data-supported 
comments on Small Area FMRs using HUD's special tabulations of the 
distribution of gross rents by unit bedroom count for ZIP Code 
Tabulation Areas. This guidance is available at https://www.huduser.gov/portal/datasets/fmr.html in the FY 2019 FMR section and 
should be used by interested parties in commenting on whether or not 
the level of Small Area FMRs are too high or too low (i.e., Small Area 
FMRs that are larger than the gross rent necessary to make 40 percent 
of the units accessible for an individual ZIP code or that are smaller 
than the gross rent necessary to make 40 percent of the units 
accessible for a given ZIP code). HUD will post revised Small Area FMRs 
after confirming commenters' calculations.
    As stated earlier in this notice, HUD is required to use the most 
recent data available when calculating FMRs. Therefore, in order to 
reevaluate an area's FMR, HUD requires more current rental market data 
than the 2016 ACS. HUD encourages a PHA or other interested party that 
believes the FMR in their area is incorrect to file a comment even if 
they do not have the resources to provide market-wide rental data. In 
these instances, HUD will use the comments, should survey funding be 
restored, when determining the areas HUD will select for HUD-funded 
local area rent surveys.

VII. Information Regarding Public Comments on May 30, 2018 Renewal 
Funding Inflation Factor Federal Register Notice

    HUD received 10 comments addressing the use of FMR surveys in the 
calculation of Renewal Funding Inflation Factors (RFIFs). Most of the 
comments received directed HUD to continue using FMR surveys in the 
calculation of RFIFs. Consequently, HUD does not have current plans to 
discontinue use of FMR surveys in the rent change component of RFIF 
calculations. HUD is still determining the exact methods to use when 
incorporating surveys in RFIF calculations. Public comments will be 
discussed in greater detail, and HUD's responses will be provided, in 
the 2019 Renewal Funding Inflation Factor notice. HUD provides the 
above information in this notice for the awareness of PHAs that are 
considering undertaking a survey to reevaluate their FY 2019 FMRs.

VIII. Environmental Impact

    This Notice involves the establishment of FMR schedules, which do 
not constitute a development decision affecting the physical condition 
of specific project areas or building sites. Accordingly, under 24 CFR 
50.19(c)(6), this Notice is categorically excluded from environmental 
review under the National Environmental Policy Act of 1969 (42 U.S.C. 
4321).
    Accordingly, the Fair Market Rent Schedules, which will not be 
codified in 24 CFR part 888, are available at https://www.huduser.gov/portal/datasets/fmr.html.

    Dated: August 27, 2018.
Todd M. Richardson,
General Deputy Assistant Secretary, Office of Policy Development and 
Research.

Fair Market Rents for the Housing Choice Voucher Program

Schedule B--General Explanatory Notes

1. Geographic Coverage

    a. Metropolitan Areas--Most FMRs are market-wide rent estimates 
that are intended to provide housing opportunities throughout the 
geographic area in which rental-housing units are in direct 
competition. HUD is using the metropolitan core-based statistical areas 
(CBSAs), which are made up of one or more counties, as defined by OMB, 
with some modifications. HUD is generally assigning separate FMRs to 
the component counties of CBSA Micropolitan Areas.
    b. Modifications to OMB Definitions--Following OMB guidance, the 
estimation procedure for the FY 2019 FMRs incorporates OMB definitions 
of metropolitan areas based on the CBSA standards as implemented with 
2000 Census data and updated by the 2010 Census in February 28, 2013, 
including incremental adjustments through July 15, 2015. The 
adjustments made to the 2000 definitions to separate subparts of these 
areas where FMRs or median incomes would otherwise change significantly 
are continued. To follow HUD's policy of providing FMRs at the smallest 
possible area of geography, no counties were added to existing 
metropolitan areas due to recent updates in metropolitan area 
definitions. All counties added to metropolitan areas by the CBSA will 
still be treated as separate counties for FMR calculations; that is, 
the rents from a county that is a sub-area will not be used in the 
remaining metropolitan sub-area rent determination. All metropolitan 
areas that have been subdivided by HUD will use ACS data which conforms 
to HUD's area definition if statistically reliable information exists. 
If statistically reliable data for a HUD defined area is not available, 
HUD uses information from larger encompassing geographies, as described 
elsewhere in this notice.
    Specific counties and New England towns and cities within each 
state in MSAs and HMFAs were not changed by the February 28, 2013 OMB 
metropolitan area definitions. These areas are listed in Schedule B, 
available online at https://www.huduser.gov/portal/datasets/fmr.html.

2. Unit Bedroom Count Adjustments

    Schedule B, available at https://www.huduser.gov/portal/datasets/fmr.html, shows the FMRs for zero-bedroom through four-bedroom units. 
The Schedule B addendum shows Small Area FMRs for all metropolitan 
areas. FMRs for unit sizes larger than four bedrooms may be calculated 
by adding 15 percent to the four-bedroom FMR for each extra bedroom. 
For example, the FMR for a five-bedroom unit is 1.15 times the four-
bedroom FMR, and the FMR for a six-bedroom unit is 1.30 times the four-
bedroom FMR. FMRs for single-room-occupancy (SRO) units are 0.75 times 
the zero-bedroom FMR.

[[Page 44651]]

3. Arrangement of FMR Areas and Identification of Constituent Parts

    a. FMR areas in online Schedule B are listed alphabetically by 
metropolitan FMR area and by non-metropolitan county within each state 
and are available at https://www.huduser.gov/portal/datasets/fmr.html.
    b. Constituent counties (and New England towns and cities) included 
in each metropolitan FMR area are listed immediately following the 
listings of the FMR dollar amounts. All constituent parts of a 
metropolitan FMR area that are in more than one state can be identified 
by consulting the listings for each applicable state.
    c. Two non-metropolitan counties are listed alphabetically on each 
line of the non-metropolitan county listings.
    d. The New England towns and cities included in a non-metropolitan 
county are listed immediately following the county name.

[FR Doc. 2018-19090 Filed 8-29-18; 4:15 pm]
 BILLING CODE 4210-67-P



                                               44644                         Federal Register / Vol. 83, No. 170 / Friday, August 31, 2018 / Notices

                                               1995. The purpose of this notice is to                  for the proper performance of the                     DEPARTMENT OF HOUSING AND
                                               allow an additional 30 days for public                  functions of the agency, including                    URBAN DEVELOPMENT
                                               comments.                                               whether the information will have
                                                                                                                                                             [Docket No. FR–6125–N–01]
                                               DATES: The purpose of this notice is to                 practical utility;
                                               allow an additional 30 days for public                    (2) Evaluate the accuracy of the                    Fair Market Rents for the Housing
                                               comments. Comments are encouraged                       agency’s estimate of the burden of the                Choice Voucher Program, Moderate
                                               and will be accepted until October 1,                   proposed collection of information,                   Rehabilitation Single Room Occupancy
                                               2018.                                                   including the validity of the                         Program, and Other Programs Fiscal
                                               ADDRESSES: Written comments and/or
                                                                                                       methodology and assumptions used;                     Year 2019
                                               suggestions regarding the item(s)                         (3) Enhance the quality, utility, and
                                                                                                       clarity of the information to be                      AGENCY:  Office of the Assistant
                                               contained in this notice, especially
                                                                                                       collected; and                                        Secretary for Policy Development and
                                               regarding the estimated public burden
                                                                                                         (4) Minimize the burden of the                      Research, HUD.
                                               and associated response time, must be
                                               directed to the OMB USCIS Desk Officer                  collection of information on those who                ACTION: Notice of Fiscal Year (FY) 2019
                                               via email at dhsdeskofficer@                            are to respond, including through the                 Fair Market Rents (FMRs) and response
                                               omb.eop.gov. All submissions received                   use of appropriate automated,                         to public comments on the use of FMR
                                               must include the agency name and the                    electronic, mechanical, or other                      surveys in the calculation of renewal
                                               OMB Control Number [1615–0016] in                       technological collection techniques or                funding inflation factors.
                                               the subject line.                                       other forms of information technology,
                                                                                                       e.g., permitting electronic submission of             SUMMARY:   Section 8(c)(1) of the United
                                                  You may wish to consider limiting the                                                                      States Housing Act of 1937 (USHA), as
                                               amount of personal information that you                 responses.
                                                                                                                                                             amended by the Housing Opportunity
                                               provide in any voluntary submission                     Overview of This Information                          Through Modernization Act of 2016
                                               you make. For additional information                    Collection                                            (HOTMA), requires the Secretary to
                                               please read the Privacy Act notice that                                                                       publish FMRs not less than annually,
                                                                                                         (1) Type of information collection
                                               is available via the link in the footer of                                                                    adjusted to be effective on October 1 of
                                                                                                       request: Extension, Without Change, of
                                               http://www.regulations.gov.                                                                                   each year. This notice describes the
                                                                                                       a Currently Approved Collection.
                                               FOR FURTHER INFORMATION CONTACT:                                                                              methods used to calculate the FY 2019
                                                                                                         (2) Title of the form/collection:
                                               USCIS, Office of Policy and Strategy,                   Application for Relief under Former                   FMRs and enumerates the procedures
                                               Regulatory Coordination Division,                       Section 212(c) of the Immigration and                 for Public Housing Agencies (PHAs) and
                                               Samantha Deshommes, Chief, 20                           Nationality Act.                                      other interested parties to request
                                               Massachusetts Avenue NW,                                  (3) Agency form number, if any, and                 reevaluations of their FMRs, as required
                                               Washington, DC 20529–2140,                              the applicable component of the DHS                   by HOTMA. To help inform PHAs’
                                               Telephone number (202) 272–8377                         sponsoring the collection: I–191; USCIS.              decisions concerning reevaluation
                                               (This is not a toll-free number;                          (4) Affected public who will be asked               requests, this notice briefly addresses
                                               comments are not accepted via                           or required to respond, as well as a brief            HUD’s May 30, 2018 notice regarding
                                               telephone message.). Please note contact                abstract: Primary: Individuals or                     the use of FMR surveys in the
                                               information provided here is solely for                 households. USCIS and EOIR use the                    calculation of Renewal Funding
                                               questions regarding this notice. It is not              information on the form to properly                   Inflation Factors.
                                               for individual case status inquiries.                   assess and determine whether the                      DATES:
                                               Applicants seeking information about                    applicant is eligible for a waiver under                Comment Due Date: October 1, 2018.
                                               the status of their individual cases can                former section 212(c) of INA.                           Effective Date: The Fair Market Rents
                                               check Case Status Online, available at                    (5) An estimate of the total number of              are effective October 1, 2018 unless
                                               the USCIS website at http://                            respondents and the amount of time                    HUD receives a request for reevaluation
                                               www.uscis.gov, or call the USCIS                        estimated for an average respondent to                of specific area FMRs as described
                                               National Customer Service Center at                     respond: The estimated total number of                below.
                                               (800) 375–5283; TTY (800) 767–1833.                     respondents for the information
                                               SUPPLEMENTARY INFORMATION:                                                                                    ADDRESSES:   HUD invites interested
                                                                                                       collection I–191 is 240 and the                       persons to submit comments regarding
                                               Comments                                                estimated hour burden per response is                 the FMRs and to request reevaluation of
                                                                                                       1.5 hours.                                            the FY 2019 FMRs to the Regulations
                                                 The information collection notice was                   (6) An estimate of the total public
                                               previously published in the Federal                                                                           Division, Office of General Counsel,
                                                                                                       burden (in hours) associated with the                 Department of Housing and Urban
                                               Register on May 14, 2018, at 83 FR                      collection: The total estimated annual
                                               22286, allowing for a 60-day public                                                                           Development, 451 Seventh Street SW,
                                                                                                       hour burden associated with this                      Room 10276, Washington, DC 20410–
                                               comment period. USCIS did receive one                   collection is 360 hours.
                                               comment in connection with the 60-day                                                                         0001. Communications must refer to the
                                                                                                         (7) An estimate of the total public                 above docket number and title and
                                               notice.                                                 burden (in cost) associated with the
                                                 You may access the information                                                                              should contain the information
                                                                                                       collection: The estimated total annual                specified in the ‘‘Request for Comments/
                                               collection instrument with instructions,
                                                                                                       cost burden associated with this                      Request for Reevaluation’’ section.
                                               or additional information by visiting the
                                                                                                       collection of information is $30,300.                 There are two methods for submitting
                                               Federal eRulemaking Portal site at:
                                               http://www.regulations.gov and enter                      Dated: August 27, 2018.                             public comments.
daltland on DSKBBV9HB2PROD with NOTICES




                                               USCIS–2006–0070 in the search box.                      Samantha L Deshommes,                                   1. Submission of Comments by Mail.
                                               Written comments and suggestions from                   Chief, Regulatory Coordination Division,              Comments or requests for reevaluation
                                               the public and affected agencies should                 Office of Policy and Strategy, U.S. Citizenship       may be submitted by mail to the
                                               address one or more of the following                    and Immigration Services, Department of               Regulations Division, Office of General
                                               four points:                                            Homeland Security.                                    Counsel, Department of Housing and
                                                 (1) Evaluate whether the proposed                     [FR Doc. 2018–18876 Filed 8–30–18; 8:45 am]           Urban Development, 451 7th Street SW,
                                               collection of information is necessary                  BILLING CODE 9111–97–P                                Room 10276, Washington, DC 20410–


                                          VerDate Sep<11>2014   18:42 Aug 30, 2018   Jkt 244001   PO 00000   Frm 00083   Fmt 4703   Sfmt 4703   E:\FR\FM\31AUN1.SGM   31AUN1


                                                                             Federal Register / Vol. 83, No. 170 / Friday, August 31, 2018 / Notices                                                  44645

                                               0500. Often, submission of comments by                  downloading at http://                                aid lower-income families in renting
                                               mail results in delayed delivery. To                    www.regulations.gov.                                  safe and decent housing. Housing
                                               ensure timely receipt of comments or                       Electronic Data Availability. This                 assistance payments are limited by
                                               reevaluation requests, HUD                              Federal Register notice will be available             FMRs established by HUD for different
                                               recommends that comments or requests                    electronically from the HUD User page                 geographic areas. In the Housing Choice
                                               submitted by mail be submitted at least                 at https://www.huduser.gov/portal/                    Voucher (HCV) program, the FMR is the
                                               2 weeks in advance of the deadline.                     datasets/fmr.html. Federal Register                   basis for determining the ‘‘payment
                                               HUD will make all comments or                           notices also are available electronically             standard amount’’ used to calculate the
                                               reevaluation requests received by mail                  at https://www.federalregister.gov/ the               maximum monthly subsidy for an
                                               available to the public at http://                      U.S. Government Printing Office                       assisted family. See 24 CFR 982.503.
                                               www.regulations.gov.                                    website. Complete documentation of the                HUD also uses the FMRs to determine
                                                  2. Electronic Submission of                          methods and data used to compute each                 initial renewal rents for some expiring
                                               Comments. Interested persons may                        area’s FY 2019 FMRs is available at                   project-based Section 8 contracts, initial
                                               submit comments or reevaluation                         https://www.huduser.gov/portal/                       rents for housing assistance payment
                                               requests electronically through the                     datasets/fmr.html#2019_query. FY 2019                 contracts in the Moderate Rehabilitation
                                               Federal eRulemaking Portal at http://                   FMRs are available in a variety of                    Single Room Occupancy program, rent
                                               www.regulations.gov. HUD strongly                       electronic formats at https://                        ceilings for rental units in both the
                                               encourages commenters to submit                         www.huduser.gov/portal/datasets/                      HOME Investment Partnerships program
                                               comments or reevaluation requests                       fmr.html. FMRs may be accessed in PDF                 and the Emergency Solution Grants
                                               electronically. Electronic submission of                as well as in Microsoft Excel. Small                  program, calculation of maximum
                                               comments or reevaluation requests                       Area FMRs for all metropolitan FMR                    award amounts for Continuum of Care
                                               allows the author maximum time to                       areas are available in Microsoft Excel                recipients and the maximum amount of
                                               prepare and submit a comment or                         format at: http://www.huduser.gov/                    rent a recipient may pay for property
                                               reevaluation request, ensures timely                    portal/datasets/fmr/smallarea/                        leased with Continuum of Care funds,
                                               receipt by HUD, and enables HUD to                      index.html.                                           and calculation of flat rents in Public
                                               make comments immediately available                     FOR FURTHER INFORMATION CONTACT: For                  Housing units. In general, the FMR for
                                               to the public. Comments or reevaluation                 technical information on the                          an area is the amount that would be
                                               requests submitted electronically                       methodology used to develop FMRs or                   needed to pay the gross rent (shelter
                                               through the http://www.regulations.gov                  a listing of all FMRs, please call the                rent plus utilities) of privately owned,
                                               website can be viewed by other                          HUD USER information line at 800–                     decent, and safe rental housing of a
                                               submitters and interested members of                    245–2691 or access the information on                 modest (non-luxury) nature with
                                               the public. Commenters or reevaluation                  the HUD USER website at http://                       suitable amenities and is typically set at
                                               requestors should follow instructions                   www.huduser.gov/portal/datasets/                      the 40th percentile of the distribution of
                                               provided on that site to submit                         fmr.html. FMRs are listed at the 40th or              gross rents. HUD’s FMR calculations
                                               comments or reevaluation requests                       50th percentile in Schedule B. For                    represent HUD’s best effort to estimate
                                               electronically.                                         informational purposes, 40th percentile               the 40th percentile gross rent paid by
                                                 Note: To receive consideration as public              rents for the areas with 50th percentile              recent movers into standard quality
                                               comments or reevaluation requests,                      FMRs will be provided in the HUD FY                   units in each FMR area. In addition, all
                                               comments or requests must be submitted                  2019 FMR documentation system at                      rents subsidized under the HCV
                                               through one of the two methods specified                https://www.huduser.gov/portal/                       program must meet reasonable rent
                                               above. Again, all submissions must refer to             datasets/fmr.html#2019_query and 50th                 standards.
                                               the docket number and title of the notice.
                                                                                                       percentile rents for all FMR areas will                  As of October 2, 2000, HUD required
                                                  No Facsimile Comments or                             be published at http://                               FMRs to be set at the 50th percentile for
                                               Reevaluation Requests. Facsimile (FAX)                  www.huduser.gov/portal/datasets/                      areas where HUD determined higher
                                               comments or requests for FMR                            50per.html.                                           FMRs were needed to help families
                                               reevaluation are not acceptable.                           Questions related to use of FMRs or                assisted under certain HUD programs
                                                  Public Inspection of Public Comments                 voucher payment standards should be                   find and lease decent and affordable
                                               and Reevaluation Requests. All properly                 directed to the respective local HUD                  housing (65 FR 58870). On November
                                               submitted comments and reevaluation                     program staff. Questions on how to                    16, 2016, HUD published a Final Rule
                                               requests and communications regarding                   conduct FMR surveys may be addressed                  entitled ‘‘Establishing a More Effective
                                               this notice submitted to HUD will be                    to Marie L. Lihn or Peter B. Kahn of the              Fair Market Rent System; Using Small
                                               available for public inspection and                     Economic and Market Analysis                          Area Fair Market Rents in the Housing
                                               copying between 8 a.m. and 5 p.m.                       Division, Office of Economic Affairs,                 Choice Voucher Program Instead of the
                                               weekdays at the above address. Due to                   Office of Policy Development and                      Current 50th Percentile FMRs’’ (Small
                                               security measures at the HUD                            Research at HUD headquarters, 451 7th                 Area FMR final rule) (81 FR 80567),
                                               Headquarters building, an advance                       Street SW, Room 8208, Washington, DC                  with an effective date of January 17,
                                               appointment to review the public                        20410; telephone number 202–402–2409                  2017. The Small Area FMR final rule
                                               comments and reevaluation requests                      (this is not a toll-free number), or via              eliminates the 50th percentile FMR
                                               must be scheduled by calling the                        email at emad-hq@hud.gov. Persons                     provisions in the FMR regulations (24
                                               Regulations Division at 202–708–3055                    with hearing or speech impairments                    CFR 888.113) 1 and provides that areas
                                               (this is not a toll-free number).                       may access HUD numbers through TTY
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                                               Individuals with speech or hearing                      by calling the Federal Relay Service at                 1 Separately from the Small Area FMR
                                               impairments may access this number                      800–877–8339 (toll-free number).                      regulations, HUD also calculates and posts 50th
                                               through TTY by calling the Federal                      SUPPLEMENTARY INFORMATION:                            percentile rent estimates for the purposes of
                                               Relay Service at 800–877–8339 (toll-free                                                                      Success Rate Payment Standards, as defined at 24
                                               number). Copies of all comments and                     I. Background                                         CFR 982.503(e) (estimates available at: http://
                                                                                                                                                             www.huduser.gov/portal/datasets/50per.html),
                                               reevaluation requests submitted are                        Section 8 of the USHA (42 U.S.C.                   which policy was not changed by the Small Area
                                               available for inspection and                            1437f) authorizes housing assistance to               FMR rule.



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                                               44646                              Federal Register / Vol. 83, No. 170 / Friday, August 31, 2018 / Notices

                                               currently designated as 50th percentile                      Register notice. After notification, the                the estimate, including whether the
                                               areas remain 50th percentile areas until                     FMRs ‘‘shall become effective no earlier                estimate is based on more than 100
                                               their current 3-year eligibility period                      than 30 days after the date of such                     observations. Using these categories,
                                               expires. At the end of the 3-year                            publication,’’ and HUD must provide a                   HUD requires that, in addition to the
                                               eligibility period, these areas revert to                    procedure for the public to comment                     ‘‘margin of error’’ test, ACS rent
                                               40th percentile FMR status. If PHAs in                       and request a reevaluation of the FMRs                  estimates must be based on at least 100
                                               areas converting from 50th percentile                        in a jurisdiction before the FMRs                       observations in order to be used as base
                                               FMRs to 40th percentile FMRs meet the                        become effective. Consistent with the                   rents.
                                               deconcentration criteria specified in 24                     statute, HUD is issuing this notice to                    For areas in which the 5-year ACS
                                               CFR 982.503(f), available at: https://                       notify the public that FY 2019 FMRs are                 data for two-bedroom, standard quality
                                               www.gpo.gov/fdsys/pkg/CFR-2016-                              available at https://www.huduser.gov/                   gross rents do not pass the statistical
                                               title24-vol4/pdf/CFR-2016-title24-vol4-                      portal/datasets/fmr.html and will                       reliability tests (i.e., have a margin of
                                               sec982-503.pdf, they may petition HUD                        become effective on October 1, 2018.                    error ratio greater than 50 percent or
                                               to maintain payment standards based on                       This notice also provides procedures for                fewer than 100 observations), HUD will
                                               50th percentile rents on that basis.                         FMR reevaluation requests.                              use an average of the base rents over the
                                                  The following areas completed their 3                                                                             three most recent years (provided that
                                               years of 50th percentile eligibility in FY               III. FMR Methodology
                                                                                                                                                                    there is data available for at least two of
                                               2018 and will revert to 40th percentile                     This section provides a brief overview                   these years),3 or if such data is not
                                               FMR status in FY 2019:                                   of how HUD computes the FY 2019                             available, using the two-bedroom rent
                                                                                                        FMRs. HUD is making no changes to the                       data within the next largest geographic
                                                  FY 2018 50TH-PERCENTILE FMR                           estimation methodology for FMRs as                          area, which for a non-metropolitan area
                                                 AREAS REVERTING TO 40TH PER- used by HUD for the FY 2018 FMRs.                                                     would be the state non-metro area rent
                                                 CENTILE FMRS IN FY 2019                                The only difference is the use of more                      data.
                                                                                                        recent data. For complete information                          Since FY 2012, HUD has updated base
                                               Baltimore-Columbia-               Philadelphia-Camden- on how HUD determines FMR areas,                              rents each year based on new 5-year
                                                 Towson, MD MSA.                     Wilmington, PA-NJ- and on how HUD derives each area’s                          data, for which HUD used 2005–2009
                                                                                     DE-MD.             FMRs, see the online documentation at
                                               Washington, DC-VA-                West Palm Beach-
                                                                                                                                                                    ACS data. HUD is also updating base
                                                                                                        https://www.huduser.gov/portal/                             rents for Puerto Rico FMRs using data
                                                 MD HUD Metro                        Boca Raton, FL     datasets/fmr.html#2019_query.
                                                 FMR Area.                           HUD Metro FMR                                                                  collected through the Puerto Rico
                                                                                                           In conjunction with the use of 2016                      Community Surveys (PRCS) between
                                                                                     Area.
                                                                                                        American Community Survey (ACS)                             2012 and 2016. HUD first updated the
                                                 The following is a list of FMR areas                   data, HUD has implemented the                               Puerto Rico base rents in FY 2014 based
                                               that retain 50th percentile FMRs for FY                  following geography changes: Effective                      on 2007–2011 PRCS data collected
                                               2019, along with the year that they will                 May 1, 2016, Garfield County,                               through the ACS program.
                                               revert to 40th percentile status:                        Oklahoma became the metropolitan area                          HUD historically based FMRs on gross
                                                                                                        of Enid, OK metropolitan statistical area                   rents for recent movers (those who have
                                                  FY 2019 50TH-PERCENTILE FMR                           (MSA). In addition, HUD changed from                        moved into their current residence in
                                                 AREAS WITH YEAR OF REVERSION two separate county-based HUD Metro                                                   the last 24 months) measured directly
                                                                                                        FMR Areas (HMFA) (Kalawao County,                           from decennial census long form survey
                                                 TO 40TH PERCENTILE FMRS
                                                                                                        HI HMFA and Maui County, HI HMFA)                           responses. However, due to the way the
                                                                                                        to a two county MSA, the Kahului-                           5-year ACS data are constructed, HUD
                                               Bergen-Passaic, NJ HUD Metro
                                                 FMR Area ..................................       2020
                                                                                                        Wailuku-Lahaina, HI MSA due to                              developed a new method for calculating
                                               Spokane, WA HUD Metro FMR                                extremely limited data available for                        recent-mover FMRs in FY 2012, which
                                                 Area ...........................................  2020 Kalawao County, HI.                                         HUD continues to use in FY 2019: HUD
                                               San Diego-Carlsbad-San Marcos,                                                                                       assigns all areas a base rent, which is
                                                                                                            A. Base Year Rents
                                                 CA MSA ....................................       2020
                                                                                                               For FY 2019 FMRs, HUD uses the U.S.                  the two-bedroom standard quality 5-
                                                                                                            Census Bureau’s 5-year ACS data                         year gross rent estimate from the ACS;
                                               II. Procedures for the Development of                                                                                then, because HUD’s regulations
                                               FMRs                                                         collected between 2012 and 2016
                                                                                                            (released in December 2017) as the base                 mandate that FMRs must be published
                                                  Section 8(c)(1) of the USHA, as                                                                                   as recent mover gross rents, HUD
                                                                                                            rents for the FMR calculations. In order
                                               amended by the Housing Opportunity                                                                                   applies a recent mover factor to the base
                                                                                                            to improve the statistical reliability of
                                               Through Modernization Act of 2016                                                                                    rents assigned from the 5-year ACS
                                                                                                            the ACS data used in the FMR
                                               (HOTMA) (Pub. L. 114–201, approved                                                                                   data.4 The calculation of the recent
                                                                                                            calculations, HUD pairs a ‘‘margin of
                                               July 29, 2016), requires the Secretary of                                                                            mover factor is described below.
                                                                                                            error’’ test 2 with an additional test
                                               HUD to publish FMRs not less than
                                                                                                            based on the number of survey
                                               annually. Section 8(c)(1)(A) states that                                                                                3 For FY 2019, the three years of ACS data in
                                                                                                            observations supporting the estimate,                   question are 2014, 2015 and 2016. The 2014 data
                                               each FMR ‘‘shall be adjusted to be
                                                                                                            beginning with the FY 2018 FMRs and                     are adjusted to be denominated in 2016 dollars
                                               effective on October 1 of each year to                                                                               using the growth in CPI-based gross rents measured
                                                                                                            continuing with the FY 2019 FMRs. The
                                               reflect changes, based on the most                                                                                   between 2014 and 2016. Similarly, the 2015 gross
                                                                                                            Census Bureau does not provide HUD
                                               recent available data trended so the                                                                                 rent data is adjusted to 2016 denominated dollars
                                                                                                            with an exact count of the number of                    using the growth in CPI-based gross rents measured
                                               rentals will be current for the year to
                                                                                                            observations supporting the ACS
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                                                                                                                                                                    between 2015 and 2016.
                                               which they apply . . .’’ Section
                                                                                                            estimate; rather, the Census Bureau                        4 HUD’s regulations incorporate recent mover
                                               8(c)(1)(B) requires that HUD publish,                                                                                data into FMR calculations because the gross rents
                                                                                                            provides HUD with categories of the
                                               not less than annually, new FMRs on                                                                                  of those who most recently moved into their units
                                                                                                            number of survey responses underlying
                                               the World Wide Web or in any other                                                                                   likely depicts the most current market conditions
                                               manner specified by the Secretary, and                                                                               observable through the ACS. Rents paid by renters
                                                                                                              2 HUD’s margin of error test requires that the        renewing existing leases may not reflect the most
                                               that HUD must also notify the public of                      margin of error of the ACS estimate is less than half   current market conditions, in part because these
                                               when it publishes FMRs by Federal                            the size of the estimate itself.                        renters may have clauses within their leases that



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                                                                              Federal Register / Vol. 83, No. 170 / Friday, August 31, 2018 / Notices                                                    44647

                                               B. Recent Mover Factor                                     aggregated metropolitan parts of the                    D. Updates From 2016 to 2017 and
                                                                                                          state, and the state.                                   Forecast to FY 2019
                                                  Following the assignment of the
                                                                                                             • In non-metropolitan areas, the order                  HUD updates the ACS-based ‘‘as of’’
                                               standard quality two-bedroom rent
                                                                                                          is the FMR area, aggregated non-                        2016 rent through the end of 2017 using
                                               described above, HUD applies a recent
                                                                                                          metropolitan parts of the state, and the                the annual change in gross rents
                                               mover factor to these rents. HUD
                                                                                                          state.                                                  measured through the Consumer Price
                                               calculates the recent mover factor as the
                                               change between the 5-year 2012–2016                           The process for calculating each area’s              Index (CPI) from 2016 to 2017 (CPI
                                               standard quality two-bedroom gross rent                    recent mover factor is detailed in the FY               update factor). As in previous years,
                                               and the 1-year 2016 recent mover gross                     2019 FMR documentation system                           HUD uses local CPI data coupled with
                                               rent for the recent mover factor area.                     available at: https://www.huduser.gov/                  Consumer Expenditure Survey data for
                                               HUD does not allow recent mover                            portal/datasets/fmr.html#2019_query.                    FMR areas with at least 75 percent of
                                               factors to lower the standard quality                      Applying the recent mover factor to the                 their population within Class A
                                               base rent; therefore, if the 5-year                        standard quality base rent produces an                  metropolitan areas covered by local CPI
                                               standard quality rent is larger than the                   ‘‘as of’’ 2016 recent mover two-bedroom                 data. In FMR areas that do not meet this
                                               comparable 1-year recent mover rent,                       gross rent for the FMR area.                            criterion, including Class B and C size
                                               the recent mover factor is set to 1.                       C. Other Rent Survey Data                               metropolitan areas and non-
                                                  The calculation of the recent mover                                                                             metropolitan areas, HUD uses CPI data
                                                                                                             HUD calculated base rents for the
                                               factor for FY 2019 continues with the                                                                              aggregated at the Census region level.
                                                                                                          insular areas using the 2010 decennial
                                               modifications first applied to the FY                                                                              Additionally, HUD is using CPI data
                                                                                                          census of American Samoa, Guam, the
                                               2018 FMRs. Similar to the statistical                                                                              collected locally in Puerto Rico as the
                                                                                                          Northern Mariana Islands, and the
                                               reliability requirements for base rents,                                                                           basis for CPI adjustments from 2016 to
                                                                                                          Virgin Islands beginning with the FY
                                               for a recent mover gross rent estimate to                                                                          2017 for all Puerto Rico FMR areas.
                                                                                                          2016 FMRs.6 This 2010 base year data
                                               be considered statistically reliable, the                                                                             Following the application of the
                                                                                                          is updated through 2016 for the FY 2019                 appropriate CPI update factor, HUD
                                               estimate must have a margin of error                       FMRs using national ACS data.
                                               ratio that is less than 50 percent, and the                                                                        trends the gross rent estimate from 2017
                                                                                                             HUD does not use ACS data to                         to FY 2019 using a national forecast of
                                               estimate must be based on 100 or more                      establish the base rent or recent mover
                                               observations.                                                                                                      expected growth in gross rents. This
                                                                                                          factor for 10 areas where the FY 2018                   forecast produces ‘‘as of’’ FY 2019
                                                  When an FMR area does not have                          FMR was adjusted based on the
                                               statistically reliable two-bedroom recent                                                                          FMRs.
                                                                                                          following survey data:
                                               mover data, the ‘‘all-bedroom’’ 5 1-year                      • Survey data from 2016 is used to                   E. Bedroom Rent Adjustments
                                               recent mover ACS data for the FMR area                     adjust the FMR for Portland, ME.
                                               is tested for statistical reliability. An                                                                            HUD updates the bedroom ratios used
                                                                                                             • Survey data from 2017 is used to                   in the calculation of FMRs annually.
                                               ‘‘all-bedroom’’ recent mover factor from                   adjust the FMRs for Santa Rosa, CA;
                                               the FMR area will be used, if                                                                                      The bedroom ratios which HUD used in
                                                                                                          Seattle-Bellevue, WA HMFA; Hood                         the calculation of FY 2019 FMRs have
                                               statistically reliable, before substituting                River County, OR; Wasco County, OR;
                                               a two-bedroom recent mover factor from                                                                             been updated using average data from
                                                                                                          Hawaii County, HI; Jonesboro, AR                        three 5-year ACS data series (2010–
                                               the next larger geography. Incorporating                   HMFA; Urban Honolulu, HI MSA; and
                                               ‘‘all-bedroom’’ rents into the recent                                                                              2014, 2011–2015, and 2012–2016). The
                                                                                                          Santa Maria-Santa Barbara, CA MSA.                      bedroom ratio methodology used in this
                                               mover factor calculation when                                 • Survey data from 2018 is used to
                                               statistically reliable two-bedroom data is                                                                         update is unchanged from previous
                                                                                                          adjust the FMR for Santa Cruz-                          calculations using 2000 Census data.
                                               not available preserves the use of local                   Watsonville, CA MSA.
                                               information to the greatest extent                                                                                 HUD only uses estimates with a margin
                                                                                                             For larger metropolitan areas that                   of error ratio of less than 50 percent. If
                                               possible.                                                  have valid ACS one-year recent mover
                                                  However, where statistically reliable                                                                           an area does not have reliable estimates
                                                                                                          data, survey data may not be any older                  in at least two of the previous three ACS
                                               ‘‘all-bedroom’’ data is not available,                     than the midpoint of the calendar year
                                               HUD will continue to base FMR areas’                                                                               releases, bedroom ratios for the area’s
                                                                                                          for the ACS one-year data. Since the                    larger parent geography are used.
                                               recent mover factors on larger                             ACS one-year data used for the FY 2019
                                               geographic areas, following the same                                                                                 HUD uses two-bedroom units for its
                                                                                                          FMRs is from 2016, larger areas may not                 primary calculation of FMR estimates.
                                               procedures used historically: HUD tests                    use survey data collected before June 30,
                                               data from differently sized geographic                                                                             This is generally the most common size
                                                                                                          2016, for the FY 2019 FMRs. Smaller                     of rental unit and, therefore, the most
                                               areas from small to large, and bases the                   areas without 1-year ACS data, may
                                               recent mover factor on the first                                                                                   reliable to survey and analyze. After
                                                                                                          continue to use local survey data until                 estimating two-bedroom FMRs, HUD
                                               statistically reliable recent mover rent                   the mid-point of the 5-year ACS data is
                                               estimate in the geographic hierarchy                                                                               calculates bedroom ratios for each FMR
                                                                                                          more recent than the local survey.7                     area which relate the prices of smaller
                                               listed below.
                                                  • For metropolitan areas that are                         6 The ACS is not conducted in the Pacific Islands
                                                                                                                                                                  and larger units to the cost of two-
                                               subareas of larger metropolitan areas,                     (Guam, Northern Marianas and American Samoa) or
                                                                                                                                                                  bedroom units. To prevent illogical
                                               the order is the FMR area, metropolitan                    the US Virgin Islands. As part of the 2010 Decennial    results in particular FMR areas, HUD
                                               area, aggregated metropolitan parts of                     Census, the Census Bureau conducted ‘‘long-form’’       establishes bedroom interval ranges
                                                                                                          sample surveys for these areas. The results gathered    which set upper and lower limits for
                                               the state, and state.                                      by this long form survey have been incorporated
                                                                                                                                                                  bedroom ratios nationwide, based on an
                                                  • For metropolitan areas that are not
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                                                                                                          into the FY 2019 FMRs.
                                                                                                            7 The 2013–2017 5-Year ACS data and the 2017          analysis of the range of such intervals
                                               divided, the order is the FMR area,
                                                                                                          1-Year ACS data will be used to calculate the FY        for all areas with large enough samples
                                                                                                          2020 FMRs. We did discontinue the use of survey         to permit accurate bedroom ratio
                                               predetermine the annual increases in rents paid            in Kauai and Maui counties in HI and in Vallejo-
                                               (i.e., rent escalator clauses).
                                                                                                                                                                  determinations.
                                                                                                          Fairfield, CA even though these surveys did not
                                                  5 ‘‘All-bedroom’’ refers to estimates aggregated        meet the age requirements because the data
                                               together regardless of the number of bedrooms in           provided did not meet our current tighter statistical   cases the FMRs for FY 2019 would have been lower
                                               the dwelling unit.                                         standards enacted for the FY 2018 FMRs. In all          than for FY 2018 and in some cases, much lower.



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                                               44648                         Federal Register / Vol. 83, No. 170 / Friday, August 31, 2018 / Notices

                                                  In the calculation of FY 2019 FMR                    units with the same number of                         V. Small Area FMRs
                                               estimates, HUD set the bedroom interval                 bedrooms. Accordingly, if the current                    PHAs operating the Housing Choice
                                               ranges as follows: Efficiency FMRs are                  year’s FMRs are less than 90 percent of               Voucher (HCV) program in the 24
                                               constrained to fall between 0.64 and                    the prior year’s FMRs as calculated by                metropolitan areas identified in the
                                               0.85 of the two-bedroom FMR; one-                       the above methodology, HUD sets the                   November 16, 2016 Federal Register
                                               bedroom FMRs must be between 0.76                       current year’s FMRs equal to 90 percent               notice ‘‘Small Area Fair Market Rents in
                                               and 0.87 of the two-bedroom FMR;                        of the prior year’s FMRs. For areas                   Housing Choice Voucher Program
                                               three-bedroom FMRs (prior to the                        where use of Small Area FMRs in the                   Values for Selection Criteria and
                                               adjustments described below) must be                    administration of their voucher                       Metropolitan Areas Subject to Small
                                               between 1.15 and 1.33 of the two-                       programs is required, the FY 2019 Small               Area Fair Market Rents’’ (81 FR 80678)
                                               bedroom FMR; and four-bedroom FMRs                      Area FMRs may be no less than 90                      are required to use Small Area FMRs
                                               (again, prior to adjustment) must be                    percent of the FY 2018 Small Area                     unless the PHA has received a
                                               between 1.26 and 1.63 of the two-                       FMRs. For all other metropolitan areas,               temporary exemption from such use;
                                               bedroom FMR. Given that these interval                  for which Small Area FMRs are                         HUD has suspended the Small Area
                                               ranges partially overlap across unit                    calculated so that they may be used for               FMR designation for the metropolitan
                                               bedroom counts, HUD further adjusts                     other allowable purposes if desired (e.g.,            area under 24 CFR 888.113(c)(4); or the
                                               bedroom ratios for a given FMR area, if                 exception payment standards, public                   PHA is a Moving to Work PHA with an
                                               necessary, to ensure that higher                        housing flat rents), the FY 2019 Small                approved alternative payment standard
                                               bedroom-count units have higher rents                   Area FMRs may be no less than 90                      policy. For more information on the
                                               than lower bedroom-count units within                   percent of the greater of the FY 2018                 process of obtaining a temporary
                                               that area. The bedroom ratios for Puerto                metropolitan area-wide FMRs or the                    exemption or area-wide suspension,
                                               Rico follow these constraints.                          applicable FY 2018 Small Area FMR.
                                                  HUD also further adjusts the rents for                                                                     please see PIH Notice 2018–01:
                                               three-bedroom and larger units to reflect                                                                     Guidance on Recent Changes in Fair
                                                                                                       G. Other Limits on FMRs
                                               HUD’s policy to set higher rents for                                                                          Market Rent (FMR), Payment Standard,
                                               these units.8 This adjustment is                          All FMRs are subject to a state or                  and Rent Reasonableness Requirements
                                               intended to increase the likelihood that                national minimum. HUD calculates a                    in the Housing Choice Voucher
                                               the largest families, who have the most                 population-weighted median two-                       Program, item (9) beginning on page 13,
                                               difficulty in leasing units, will be                    bedroom 40th percentile rent across all               available at: https://www.hud.gov/sites/
                                               successful in finding eligible program                  non-metropolitan portions of each state,              dfiles/PIH/documents/PIH-2018-01.pdf.
                                               units. The adjustment adds 8.7 percent                  which, for the purposes of FMRs, is the               Small Area FMRs for all metropolitan
                                               to the unadjusted three-bedroom FMR                     state minimum rent. State-minimum                     areas are listed in the Schedule B
                                               estimates and adds 7.7 percent to the                   rents for each FMR area are available in              addendum. Other metropolitan PHAs
                                               unadjusted four-bedroom FMR                             the FY 2019 FMR Documentation                         interested in using Small Area FMRs in
                                               estimates.                                              System, available at https://                         the operation of their Housing Choice
                                                  HUD derives FMRs for units with                      www.huduser.gov/portal/datasets/                      Voucher program must contact their
                                               more than four bedrooms by adding 15                    fmr.html#2019_query. HUD also                         local HUD field office to request
                                               percent to the four-bedroom FMR for                     calculates the population-weighted                    approval from HUD.
                                               each extra bedroom. For example, the                    median two-bedroom 40th percentile                       In the FY 2018 FMR Federal Register
                                               FMR for a five-bedroom unit is 1.15                     rent across all non-metropolitan                      notice (82 FR 41637), HUD announced
                                               times the four-bedroom FMR, and the                     portions of the country, which, for the               changes in the way Small Area FMRs
                                               FMR for a six-bedroom unit is 1.30                      purposes of FMRs, is the national                     are calculated and continues this change
                                               times the four-bedroom FMR. Similarly,                  minimum rent. For FY 2019, the                        for the FY 2019 Small Area FMRs. HUD
                                               HUD derives FMRs for single-room                        national minimum rent is $700. The                    calculates Small Area FMRs directly
                                               occupancy units by subtracting 25                       applicable minimum rent for a                         from the standard quality gross rents
                                               percent from the zero-bedroom FMR                       particular area is the lower of the state             provided to HUD by the Census Bureau
                                               (i.e., they are set at 0.75 times the zero-             or national minimum. Each area’s two-                 for ZIP Code Tabulation Areas (ZCTAs),
                                               bedroom (efficiency) FMR).9                             bedroom FMR must be no less than the                  when such data is statistically reliable,
                                                                                                       applicable minimum rent.                              instead of using the current rent ratio
                                               F. Limit on FMR Decreases                                                                                     calculation. The ZCTA two-bedroom
                                                 Within the Small Area FMR final rule                    As in prior years, Small Area FMRs                  equivalent 40th percentile gross rent is
                                               published on November 16, 2016, HUD                     are subject to a maximum limit. HUD                   analogous to the standard quality base
                                               amended 24 CFR 888.113 to include a                     limits each two-bedroom Small Area                    rents set for metropolitan areas and non-
                                               limit on the amount that FMRs may                       FMR to be no more than 150 percent of                 metropolitan counties. For each ZCTA
                                               annually decrease. The current year’s                   the two-bedroom FMR for the                           with statistically reliable gross rent
                                               FMRs resulting from the application of                  metropolitan area where the ZIP code is               estimates, using the expanded test of
                                               the bedroom ratios, as discussed in                     located.                                              statistical reliability first used in FY
                                               section (E) above, may be no less than                  IV. Manufactured Home Space Surveys                   2018 (i.e., estimates with margins of
                                               90 percent of the prior year’s FMRs for                                                                       error ratios below 50 percent and based
                                                                                                         HOTMA changed the manner in                         on at least 100 observations), HUD will
                                                 8 As mentioned above, HUD applies the interval        which vouchers are used to subsidize                  calculate a two-bedroom equivalent
                                               ranges for the three-bedroom and four-bedroom           manufactured home units. Please see                   40th percentile gross rent using the first
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                                               FMR ratios prior to making these adjustments. In
                                               other words, the adjusted three- and four-bedroom       HUD’s Notice from January 18, 2017 (82                statistically reliable gross rent
                                               FMRs can exceed the interval ranges, but the            FR 5458) for more detailed information                distribution data from the following
                                               unadjusted FMRs cannot.                                 concerning the use of vouchers for                    data sets (in this order): Two-bedroom
                                                 9 As established in the interim rules
                                                                                                       manufactured home units. Due to the                   gross rents, one-bedroom gross rents,
                                               implementing the provisions of the Quality Housing
                                               and Work Responsibility Act of 1998 (Title V of the
                                                                                                       nature of these changes, HUD will no                  and three-bedroom gross rents. If either
                                               FY 1999 HUD Appropriations Act; Pub. L. 105–            longer be publishing exception rents for              the one-bedroom or three-bedroom gross
                                               276). In 24 CFR 982.604.                                Manufactured Home Space pad rents.                    rent data is used because the two-


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                                                                              Federal Register / Vol. 83, No. 170 / Friday, August 31, 2018 / Notices                                          44649

                                               bedroom gross rent data is not                          recent available data’’ while also serving            982.503(d)) and reference the
                                               statistically reliable, the one-bedroom or              as an effective program parameter.                    ‘‘unfloored’’ rents (i.e., the unfinalized
                                               three-bedroom 40th percentile gross rent                  PHAs or other interested parties                    FMRs calculated by HUD prior to
                                               will be converted to a two-bedroom                      interested in requesting HUD                          application of the 10-percent-decrease
                                               equivalent rent using the bedroom ratios                reevaluation of their area’s FY 2019                  limit) depicted in the FY 2019 FMR
                                               for the ZCTA’s parent metropolitan area.                FMRs, as provided for under section                   Documentation System available at:
                                               To increase stability to these Small Area               8(c)(1)(B) of USHA, must follow the                   https://www.huduser.gov/portal/
                                               FMR estimates, HUD averages the latest                  following procedures:                                 datasets/fmr.html#2019_query.
                                               three years of gross rent estimates.10                    1. By the end of the comment period,                Questions on how to conduct FMR
                                                 For ZCTAs without usable gross rent                   such reevaluation requests must be                    surveys may be addressed to Marie L.
                                               data by bedroom size, HUD will                          submitted publicly through                            Lihn or Peter B. Kahn of the Economic
                                               continue to calculate Small Area FMRs                   www.regulations.gov or directly to HUD                and Market Analysis Division, Office of
                                               using the rent ratio method similar to                  as described above. The area’s PHA or,
                                                                                                                                                             Economic Affairs, Office of Policy
                                               that which HUD has used in past Small                   in multijurisdictional areas, PHA(s)
                                                                                                                                                             Development and Research at HUD
                                               Area FMR calculations. To calculate                     representing at least half of the voucher
                                                                                                                                                             headquarters, 451 7th Street SW, Room
                                               Small Area FMRs using a rent ratio,                     tenants in the FMR area, must agree that
                                                                                                                                                             8208, Washington, DC 20410; telephone
                                               HUD divides the median gross rent                       the reevaluation is necessary.
                                                                                                         2. In order for a reevaluation to occur,            number 202–402–2409 (this is not a toll-
                                               across all bedrooms for the small area (a                                                                     free number), or via email at emad-hq@
                                               ZIP code) by the similar median gross                   the requestor(s) must supply HUD with
                                                                                                       data more recent than the 2016                        hud.gov.
                                               rent for the metropolitan area of the ZIP                                                                        For small metropolitan areas without
                                               code. In small areas where the median                   American Community Survey data used
                                                                                                       in the calculation of the FY 2019 FMRs.               one-year ACS data and non-
                                               gross rent is not statistically reliable,
                                                                                                       HUD requires data on gross rents paid                 metropolitan counties, HUD has
                                               HUD substitutes the median gross rent
                                                                                                       in the FMR area for standard quality                  developed a method using mail surveys
                                               for the county containing the ZIP code
                                                                                                       rental housing units. The data delivered              that is discussed on the FMR web page:
                                               in the numerator of the rent ratio
                                                                                                       must be sufficient for HUD to calculate               https://www.huduser.gov/portal/
                                               calculation. HUD multiplies this rent
                                                                                                       a 40th and 50th percentile two-bedroom                datasets/fmr.html#survey_info. This
                                               ratio by the current two-bedroom rent
                                                                                                       rent. Should this type of data not be                 method allows for the collection of as
                                               for the metropolitan area containing the
                                                                                                       available, requestors may gather this                 few as 100 one-bedroom, two-bedroom
                                               small area to generate the current year
                                                                                                       information using the survey guidance                 and three-bedroom recent mover
                                               two-bedroom rent for the small area.
                                                 HUD continues to use a rolling                        available at https://www.huduser.gov/                 (tenants that moved in last 24 months)
                                               average of ACS data in calculating the                  portal/datasets/fmr/NoteRevised                       units.
                                               Small Area FMR rent ratios. HUD                         AreaSurveyProcedures.pdf and https://                    While HUD has not developed a
                                               believes coupling the most current data                 www.huduser.gov/portal/datasets/fmr/                  specific method for mail surveys in
                                               with previous year’s data minimizes                     PrinciplesforPHA-ConductedAreaRent                    areas with 1-year ACS data or in areas
                                               excessive year-to-year variability in                   Surveys.pdf.                                          not covered by ACS data, HUD will
                                               Small Area FMR rent ratios due to                         3. On or about October 2, HUD will                  apply the standard established for
                                               sampling variance. Therefore, for FY                    post a list, at https://www.huduser.gov/              Random-Digit Dialing (RDD) telephone
                                               2019 Small Area FMRs, HUD has                           portal/datasets/fmr.html of the areas                 rent surveys. HUD will evaluate these
                                               updated the rent ratios to use an average               requesting reevaluations and where FY                 survey results to determine whether to
                                               of the rent ratios calculated from the                  2018 FMRs remain in effect.                           establish a new FMR statistically
                                               2010–2014, 2011–2015, and 2012–2016                       4. Data for reevaluations must be                   different from the current FMR, which
                                               5-year ACS estimates.                                   supplied to HUD no later than Friday,                 means that the survey confidence
                                                                                                       January 11, 2019. On Monday January                   interval must not include the FMR. The
                                               VI. Request for Public Comments and                                                                           survey should collect results based on
                                                                                                       14, 2018, HUD will post at https://
                                               FMR Reevaluations                                                                                             200 one-bedroom and two-bedroom
                                                                                                       www.huduser.gov/portal/datasets/
                                                  Although HUD has not changed the                     fmr.html a listing of the areas failing to            eligible recent mover units to provide a
                                               FMR estimation method for FY 2019,                      deliver data and making the FY 2019                   small enough confidence interval for
                                               HUD will continue to accept public                      FMRs effective in these areas.                        significant results in large market mail
                                               comments on the methods HUD uses to                       5. HUD will use the data delivered by               surveys. Areas with statistically reliable
                                               calculate FY 2019 FMRs, including                       January 11, 2019, to reevaluate the                   1-year ACS data are not considered to be
                                               Small Area FMRs, and the FMR levels                     FMRs and following the reevaluation,                  good candidates for local surveys due to
                                               for specific areas. Due to its current                  will post revised FMRs with an                        the size and completeness of the ACS
                                               funding levels, HUD no longer has                       accompanying Federal Register notice                  process.
                                               sufficient resources to conduct local                   stating the revised FMRs are available,                  Other survey methods are acceptable
                                               surveys of rents to address comments                    which will include HUD responses to                   in providing data to support
                                               filed regarding the FMR levels for                      comments filed during the comment                     reevaluation requests if the survey
                                               specific areas. PHAs may continue to                    period.                                               method can provide statistically
                                               fund such surveys independently, as                       6. Any data supporting a change in                  reliable, unbiased estimates of the gross
                                               specified below, using administrative                   FMRs supplied after January 11, 2019,                 rent of the entire FMR area. In general,
                                               fees if they so choose. HUD continually                 will be incorporated into FY 2020                     recommendations for FMR changes and
                                               strives to calculate FMRs that meet the                 FMRs.                                                 supporting data must reflect the rent
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                                               statutory requirement of using ‘‘the most                 7. PHAs operating in areas where the                levels that exist within the entire FMR
                                                                                                       calculated FMR is lower than the                      area and should be statistically reliable.
                                                 10 For example, for FY 2019 Small Area FMRs,          published FMR (i.e., those areas where                   PHAs in non-metropolitan areas may,
                                               HUD averages the gross rents from 2014, 2015 and        HUD has limited the decrease in the                   in certain circumstances, conduct
                                               2016 5-Year ACS estimates. The 2014 and 2015
                                               gross rent estimates would be adjusted to 2016
                                                                                                       annual change in the FMR to 10                        surveys of groups of counties. HUD
                                               dollars using the metropolitan area’s gross rent CPI    percent) may request payment standards                must approve all county-grouped
                                               adjustment factors.                                     below the basic range (24 CFR                         surveys in advance. PHAs are cautioned


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                                               44650                         Federal Register / Vol. 83, No. 170 / Friday, August 31, 2018 / Notices

                                               that the resulting FMRs may not be                      data. In these instances, HUD will use                more counties, as defined by OMB, with
                                               identical for the counties surveyed; each               the comments, should survey funding                   some modifications. HUD is generally
                                               individual FMR area will have a                         be restored, when determining the areas               assigning separate FMRs to the
                                               separate FMR based on the relationship                  HUD will select for HUD-funded local                  component counties of CBSA
                                               of rents in that area to the combined                   area rent surveys.                                    Micropolitan Areas.
                                               rents in the cluster of FMR areas. In
                                                                                                       VII. Information Regarding Public                        b. MODIFICATIONS TO OMB DEFINITIONS—
                                               addition, PHAs are advised that in
                                                                                                       Comments on May 30, 2018 Renewal                      Following OMB guidance, the
                                               counties where FMRs are based on the
                                                                                                       Funding Inflation Factor Federal                      estimation procedure for the FY 2019
                                               combined rents in the cluster of FMR
                                                                                                       Register Notice                                       FMRs incorporates OMB definitions of
                                               areas, HUD will not revise their FMRs
                                               unless the grouped survey results show                    HUD received 10 comments                            metropolitan areas based on the CBSA
                                               a revised FMR statistically different                   addressing the use of FMR surveys in                  standards as implemented with 2000
                                               from the combined rent level.                           the calculation of Renewal Funding                    Census data and updated by the 2010
                                                  Survey samples should preferably be                  Inflation Factors (RFIFs). Most of the                Census in February 28, 2013, including
                                               randomly drawn from a complete list of                  comments received directed HUD to                     incremental adjustments through July
                                               rental units for the FMR area. If this is               continue using FMR surveys in the                     15, 2015. The adjustments made to the
                                               not feasible, the selected sample must                  calculation of RFIFs. Consequently,                   2000 definitions to separate subparts of
                                               be drawn to be statistically                            HUD does not have current plans to                    these areas where FMRs or median
                                               representative of the entire rental                     discontinue use of FMR surveys in the                 incomes would otherwise change
                                               housing stock of the FMR area. Surveys                  rent change component of RFIF                         significantly are continued. To follow
                                               must include units at all rent levels and               calculations. HUD is still determining                HUD’s policy of providing FMRs at the
                                               be representative by structure type                     the exact methods to use when                         smallest possible area of geography, no
                                               (including single-family, duplex, and                   incorporating surveys in RFIF                         counties were added to existing
                                               other small rental properties), age of                  calculations. Public comments will be                 metropolitan areas due to recent
                                               housing unit, and geographic location.                  discussed in greater detail, and HUD’s                updates in metropolitan area
                                               The current 5-year ACS data should be                   responses will be provided, in the 2019               definitions. All counties added to
                                               used as a means of verifying if a sample                Renewal Funding Inflation Factor                      metropolitan areas by the CBSA will
                                               is representative of the FMR area’s                     notice. HUD provides the above                        still be treated as separate counties for
                                               rental housing stock.                                   information in this notice for the                    FMR calculations; that is, the rents from
                                                  A PHA or contractor that cannot                      awareness of PHAs that are considering                a county that is a sub-area will not be
                                               obtain the recommended number of                        undertaking a survey to reevaluate their              used in the remaining metropolitan sub-
                                               sample responses after reasonable                       FY 2019 FMRs.                                         area rent determination. All
                                               efforts should consult with HUD before                                                                        metropolitan areas that have been
                                                                                                       VIII. Environmental Impact
                                               abandoning its survey; in such
                                                                                                         This Notice involves the                            subdivided by HUD will use ACS data
                                               situations, HUD may find it appropriate
                                                                                                       establishment of FMR schedules, which                 which conforms to HUD’s area
                                               to relax normal sample size
                                                                                                       do not constitute a development                       definition if statistically reliable
                                               requirements.
                                                  HUD has developed guidance on how                    decision affecting the physical                       information exists. If statistically
                                               to provide data-supported comments on                   condition of specific project areas or                reliable data for a HUD defined area is
                                               Small Area FMRs using HUD’s special                     building sites. Accordingly, under 24                 not available, HUD uses information
                                               tabulations of the distribution of gross                CFR 50.19(c)(6), this Notice is                       from larger encompassing geographies,
                                               rents by unit bedroom count for ZIP                     categorically excluded from                           as described elsewhere in this notice.
                                               Code Tabulation Areas. This guidance is                 environmental review under the                           Specific counties and New England
                                               available at https://www.huduser.gov/                   National Environmental Policy Act of                  towns and cities within each state in
                                               portal/datasets/fmr.html in the FY 2019                 1969 (42 U.S.C. 4321).                                MSAs and HMFAs were not changed by
                                               FMR section and should be used by                         Accordingly, the Fair Market Rent                   the February 28, 2013 OMB
                                               interested parties in commenting on                     Schedules, which will not be codified in              metropolitan area definitions. These
                                               whether or not the level of Small Area                  24 CFR part 888, are available at https://            areas are listed in Schedule B, available
                                               FMRs are too high or too low (i.e., Small               www.huduser.gov/portal/datasets/                      online at https://www.huduser.gov/
                                               Area FMRs that are larger than the gross                fmr.html.                                             portal/datasets/fmr.html.
                                               rent necessary to make 40 percent of the                   Dated: August 27, 2018.
                                               units accessible for an individual ZIP                                                                        2. Unit Bedroom Count Adjustments
                                                                                                       Todd M. Richardson,
                                               code or that are smaller than the gross
                                                                                                       General Deputy Assistant Secretary, Office              Schedule B, available at https://
                                               rent necessary to make 40 percent of the                of Policy Development and Research.
                                               units accessible for a given ZIP code).                                                                       www.huduser.gov/portal/datasets/
                                               HUD will post revised Small Area FMRs                   Fair Market Rents for the Housing                     fmr.html, shows the FMRs for zero-
                                               after confirming commenters’                            Choice Voucher Program                                bedroom through four-bedroom units.
                                               calculations.                                                                                                 The Schedule B addendum shows Small
                                                                                                       Schedule B—General Explanatory
                                                  As stated earlier in this notice, HUD                                                                      Area FMRs for all metropolitan areas.
                                                                                                       Notes
                                               is required to use the most recent data                                                                       FMRs for unit sizes larger than four
                                               available when calculating FMRs.                        1. Geographic Coverage                                bedrooms may be calculated by adding
                                               Therefore, in order to reevaluate an                       a. METROPOLITAN AREAS—Most FMRs                    15 percent to the four-bedroom FMR for
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                                               area’s FMR, HUD requires more current                   are market-wide rent estimates that are               each extra bedroom. For example, the
                                               rental market data than the 2016 ACS.                   intended to provide housing                           FMR for a five-bedroom unit is 1.15
                                               HUD encourages a PHA or other                           opportunities throughout the geographic               times the four-bedroom FMR, and the
                                               interested party that believes the FMR                  area in which rental-housing units are                FMR for a six-bedroom unit is 1.30
                                               in their area is incorrect to file a                    in direct competition. HUD is using the               times the four-bedroom FMR. FMRs for
                                               comment even if they do not have the                    metropolitan core-based statistical areas             single-room-occupancy (SRO) units are
                                               resources to provide market-wide rental                 (CBSAs), which are made up of one or                  0.75 times the zero-bedroom FMR.


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                                                                             Federal Register / Vol. 83, No. 170 / Friday, August 31, 2018 / Notices                                                 44651

                                               3. Arrangement of FMR Areas and                         impairments may access this number                    information technology, e.g., permitting
                                               Identification of Constituent Parts                     through TTY by calling the toll-free                  electronic submission of responses.
                                                  a. FMR areas in online Schedule B are                Federal Relay Service at (800) 877–8339.                HUD encourages interested parties to
                                               listed alphabetically by metropolitan                      Copies of available documents                      submit comment in response to these
                                               FMR area and by non-metropolitan                        submitted to OMB may be obtained                      questions.
                                               county within each state and are                        from Ms. Pollard.                                       Authority: Section 3507 of the Paperwork
                                               available at https://www.huduser.gov/                   SUPPLEMENTARY INFORMATION: This                       Reduction Act of 1995, 44 U.S.C. Chapter 35.
                                               portal/datasets/fmr.html.                               notice informs the public that HUD is                   Dated: August 21, 2018.
                                                  b. Constituent counties (and New                     seeking approval from OMB for the                     Colette Pollard,
                                               England towns and cities) included in                   information collection described in                   Department Reports Management Officer,
                                               each metropolitan FMR area are listed                   Section A.                                            Office of the Chief Information Officer.
                                               immediately following the listings of the                  The Federal Register notice that                   [FR Doc. 2018–19002 Filed 8–30–18; 8:45 am]
                                               FMR dollar amounts. All constituent                     solicited public comment on the
                                                                                                                                                             BILLING CODE 4210–67–P
                                               parts of a metropolitan FMR area that                   information collection for a period of 60
                                               are in more than one state can be                       days was published on January 16, 2018
                                               identified by consulting the listings for               at 83 FR 2174.                                        DEPARTMENT OF HOUSING AND
                                               each applicable state.                                  A. Overview of Information Collection                 URBAN DEVELOPMENT
                                                  c. Two non-metropolitan counties are
                                               listed alphabetically on each line of the                 Title of Information Collection: Local              [Docket No. FR–7001–N–48]
                                               non-metropolitan county listings.                       Appeals to Single-Family Mortgage
                                                                                                       Limits.                                               30-Day Notice of Proposed Information
                                                  d. The New England towns and cities
                                                                                                         OMB Approval Number: 2502–0302.                     Collection: Survey To Assess
                                               included in a non-metropolitan county                                                                         Operational and Capacity Status of
                                               are listed immediately following the                      Type of Request: Extension.
                                                                                                         Form Number: None.                                  Housing Counseling Agencies After a
                                               county name.                                                                                                  Disaster
                                                                                                         Description of the need for the
                                               [FR Doc. 2018–19090 Filed 8–29–18; 4:15 pm]
                                                                                                       information and proposed use: Any                     AGENCY:  Office of the Chief Information
                                               BILLING CODE 4210–67–P
                                                                                                       interested party may submit a request                 Officer, HUD.
                                                                                                       for the mortgage limits to be increased               ACTION: Notice.
                                                                                                       in a particular area if they believe that
                                               DEPARTMENT OF HOUSING AND
                                                                                                       the present limit does not accurately                 SUMMARY:   HUD submitted the proposed
                                               URBAN DEVELOPMENT
                                                                                                       reflect the higher sales prices in that               information collection requirement
                                               [Docket No. FR–7001–N–47]                               area. Any request for an increase must                described below to the Office of
                                                                                                       be accompanied by sufficient housing                  Management and Budget (OMB) for
                                               30-Day Notice of Proposed Information                   sales price data to justify higher limits.            review, in accordance with the
                                               Collection: Local Appeals to Single-                    This allows HUD the opportunity to                    Paperwork Reduction Act. The purpose
                                               Family Mortgage Limits                                  examine additional data to confirm or                 of this notice is to allow for 30 days of
                                               AGENCY:  Office of the Chief Information                adjust the set loan limit for a particular            public comment.
                                               Officer, HUD.                                           area.                                                 DATES: Comments Due Date: October 1,
                                                                                                         Respondents: (i.e., affected public):               2018.
                                               ACTION: Notice.
                                                                                                       Business or other for-profit.                         ADDRESSES: Interested persons are
                                               SUMMARY:   HUD submitted the proposed                     Estimated Number of Respondents:                    invited to submit comments regarding
                                               information collection requirement                      14.                                                   this proposal. Comments should refer to
                                               described below to the Office of                          Estimated Number of Responses: 14.                  the proposal by name and/or OMB
                                               Management and Budget (OMB) for                           Frequency of Response: 1.
                                                                                                                                                             Control Number and should be sent to:
                                               review, in accordance with the                            Average Hours per Response: 7.
                                                                                                                                                             HUD Desk Officer, Office of
                                               Paperwork Reduction Act. The purpose                      Total Estimated Burdens: 98.
                                                                                                                                                             Management and Budget, New
                                               of this notice is to allow for 30 days of               Solicitation of Public Comment                        Executive Office Building, Washington,
                                               public comment.                                                                                               DC 20503; fax: 202–395–5806, Email:
                                                                                                         This notice is soliciting comments
                                               DATES: Comments Due Date: October 1,                                                                          OIRA_Submission@omb.eop.gov.
                                                                                                       from members of the public and affected
                                               2018.                                                   parties concerning the collection of                  FOR FURTHER INFORMATION CONTACT: Inez
                                               ADDRESSES: Interested persons are                       information described in Section A on                 C. Downs, Reports Management Officer,
                                               invited to submit comments regarding                    the following:                                        QMAC, Department of Housing and
                                               this proposal. Comments should refer to                   (1) Whether the proposed collection                 Urban Development, 451 7th Street SW,
                                               the proposal by name and/or OMB                         of information is necessary for the                   Washington, DC 20410; email
                                               Control Number and should be sent to:                   proper performance of the functions of                Inez.C.Downs@hud.gov, or telephone
                                               HUD Desk Officer, Office of                             the agency, including whether the                     202–402–8046. This is not a toll-free
                                               Management and Budget, New                              information will have practical utility;              number. Person with hearing or speech
                                               Executive Office Building, Washington,                    (2) The accuracy of the agency’s                    impairments may access this number
                                               DC 20503; fax: 202–395–5806, Email:                     estimate of the burden of the proposed                through TTY by calling the toll-free
                                               OIRAlSubmission@omb.eop.gov.                            collection of information;                            Federal Relay Service at (800) 877–8339.
                                               FOR FURTHER INFORMATION CONTACT:                          (3) Ways to enhance the quality,                       Copies of available documents
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                                               Colette Pollard, Reports Management                     utility, and clarity of the information to            submitted to OMB may be obtained
                                               Officer, QMAC, Department of Housing                    be collected; and                                     from Ms. Downs.
                                               and Urban Development, 451 7th Street                     (4) Ways to minimize the burden of                  SUPPLEMENTARY INFORMATION: This
                                               SW, Washington, DC 20410; email                         the collection of information on those                notice informs the public that HUD is
                                               Colette Pollard@hud.gov, or telephone                   who are to respond: including through                 seeking approval from OMB for the
                                               202–402–3400. This is not a toll-free                   the use of appropriate automated                      information collection described in
                                               number. Person with hearing or speech                   collection techniques or other forms of               Section A.


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Document Created: 2018-08-31 00:53:39
Document Modified: 2018-08-31 00:53:39
CategoryRegulatory Information
CollectionFederal Register
sudoc ClassAE 2.7:
GS 4.107:
AE 2.106:
PublisherOffice of the Federal Register, National Archives and Records Administration
SectionNotices
ActionNotice of Fiscal Year (FY) 2019 Fair Market Rents (FMRs) and response to public comments on the use of FMR surveys in the calculation of renewal funding inflation factors.
DatesComment Due Date: October 1, 2018.
ContactFor technical information on the methodology used to develop FMRs or a listing of all FMRs, please call the HUD USER information line at 800-245-2691 or access the information on the HUD USER website at http://www.huduser.gov/portal/datasets/ fmr.html. FMRs are listed at the 40th or 50th percentile in Schedule B. For informational purposes, 40th percentile rents for the areas with 50th percentile FMRs will be provided in the HUD FY 2019 FMR documentation system at https://www.huduser.gov/portal/datasets/ fmr.html#2019_query and 50th percentile rents for all FMR areas will be published at http://www.huduser.gov/portal/datasets/50per.html.
FR Citation83 FR 44644 

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