83 FR 59404 - Notice of Certain Operating Cost Adjustment Factors for 2019
DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT Federal Register Volume 83, Issue 226 (November 23, 2018)
Federal Register Volume 83, Issue 226 (November 23, 2018)
| Page Range | 59404-59406 | |
| FR Document | 2018-25440 |
[Federal Register Volume 83, Number 226 (Friday, November 23, 2018)] [Notices] [Pages 59404-59406] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2018-25440] ======================================================================= ----------------------------------------------------------------------- DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT [Docket No. FR-6128-N-01] Notice of Certain Operating Cost Adjustment Factors for 2019 AGENCY: Office of the Assistant Secretary for Housing--Federal Housing Commissioner, HUD. ACTION: Notice. ----------------------------------------------------------------------- SUMMARY: This notice establishes operating cost adjustment factors (OCAFs) for project-based assistance contracts issued under Section 8 of the United States Housing Act of 1937 and renewed under the Multifamily Assisted Housing Reform and Affordability Act of 1997 (MAHRA) for eligible multifamily housing projects having an anniversary date on or after February 11, 2019. OCAFs are annual factors used to adjust Section 8 rents renewed under section 515 or section 524 of MAHRA. DATES: Applicability Date: February 11, 2019. FOR FURTHER INFORMATION CONTACT: Carissa Janis, Program Analyst, Office of Asset Management and Portfolio Oversight, Department of Housing and Urban Development, 451 7th Street SW, Washington, DC 20410; telephone number 202-402-2487 (this is not a toll-free number). Hearing- or speech-impaired individuals may access this number through TTY by calling the toll-free Federal Relay Service at 800-877-8339. SUPPLEMENTARY INFORMATION: I. OCAFs Section 514(e)(2) and section 524(c)(1) of MAHRA (42 U.S.C. 1437f note) require HUD to establish guidelines for the development of OCAFs for rent adjustments. Sections 524(a)(4)(C)(i), 524(b)(1)(A), and 524(b)(3)(A) of MAHRA, all of which prescribe the use of the OCAF in the calculation of renewal rents, contain similar language. HUD has therefore used a single methodology for establishing OCAFs, which vary among states and territories. MAHRA gives HUD broad discretion in setting OCAFs, referring, for example, in sections 524(a)(4)(C)(i), 524(b)(1)(A), 524(b)(3)(A) and 524(c)(1) simply to ``an operating cost adjustment factor established by the Secretary.'' The sole limitation to this grant of authority is a specific requirement in each of the foregoing provisions that application of an OCAF ``shall not result in a negative adjustment.'' Contract rents are adjusted by applying the OCAF to that portion of the rent attributable to operating expenses exclusive of debt service. The OCAFs provided in this notice are applicable to eligible projects having a contract anniversary date of February 11, 2019 or after and were calculated using the same method as those published in HUD's 2018 OCAF notice published on November 2, 2017 (82 FR 50888). Specifically, OCAFs are calculated as the sum of weighted component cost changes for wages, employee benefits, property taxes, insurance, supplies and equipment, fuel oil, electricity, natural gas, and water/ sewer/trash using publicly available indices. The weights used in the OCAF calculations for each of the nine cost component groupings are set using current percentages attributable to each of the nine expense categories. These weights are calculated in the same manner as in the November 2, 2017 notice. Average expense proportions were calculated using three years of audited Annual Financial Statements from projects covered by OCAFs. The expenditure percentages for these nine categories have been found to be very stable over time but using three years of data increases their stability. The nine cost component weights were calculated at the state level, which is the lowest level of geographical aggregation with enough projects to permit statistical analysis. These data were not available for the Western Pacific Islands, so data for Hawaii were used as the best available indicator of OCAFs for these areas. The best current price data sources for the nine cost categories were used in calculating annual change factors. State-level data for fuel oil, electricity, and natural gas from Department of Energy surveys are relatively current and continue to be used. Data on changes in employee benefits, insurance, property taxes, and water/sewer/trash costs are only available at the national level. The data sources for the nine cost indicators selected used were as follows:Labor Costs: First quarter, 2018 Bureau of Labor Statistics (BLS) ECI, Private Industry Wages and Salaries, All Workers (Series ID CIU2020000000000I) at the national level and Private Industry Benefits, All Workers (Series ID CIU2030000000000I) at the national level. [[Page 59405]] Property Taxes: Census Quarterly Summary of State and Local Government Tax Revenue--Table 1 http://www2.census.gov/govs/qtax/20172018/q1t1.xlshttp://www2.census.gov/govs/qtax/2017/q1t1.xls. 12- month property taxes are computed as the total of four quarters of tax receipts for the period from April through March. Total 12-month taxes are then divided by the number of occupied housing units to arrive at average 12-month tax per housing unit. The number of occupied housing units is taken from the estimates program at the Bureau of the Census. http://www.census.gov/housing/hvs/data/histtab8.xlsx. Goods, Supplies, Equipment: May 2017 to May 2018 Bureau of Labor Statistics (BLS) Consumer Price Index, All Items Less Food, Energy and Shelter (Series ID CUUR0000SA0L12E) at the national level. Insurance: May 2017 to May 2018 Bureau of Labor Statistic (BLS) Consumer Price Index, Tenants and Household Insurance Index (Series ID CUUR0000SEHD) at the national level. Fuel Oil: October 2017-March 2018 U.S. Weekly Heating Oil and Propane Prices report. Average weekly residential heating oil prices in cents per gallon excluding taxes for the period from October 2, 2017 through the week of March 26, 2018 are compared to the average from October 3, 2016 through the week of March 27, 2017. For the States with insufficient fuel oil consumption to have separate estimates, the relevant regional Petroleum Administration for Defense Districts (PADD) change between these two periods is used; if there is no regional PADD estimate, the U.S. change between these two periods is used. http://www.eia.gov/dnav/pet/pet_pri_wfr_a_EPD2F_prs_dpgal_w.htm. Electricity: Energy Information Agency, February 2018 ``Electric Power Monthly'' report, Table 5.6.B. http://www.eia.gov/electricity/monthly/epm_table_grapher.cfm?t=epmt_5_06_b. Natural Gas: Energy Information Agency, Natural Gas, Residential Energy Price, 2016-2017 annual prices in dollars per 1,000 cubic feet at the state level. Due to EIA data quality standards several states were missing data for one or two months in 2017; in these cases, data for these missing months were estimated using data from the surrounding months in 2017 and the relationship between that same month and the surrounding months in 2016. http://www.eia.gov/dnav/ng/ng_pri_sum_a_EPG0_PRS_DMcf_a.htm. Water and Sewer: May 2017 to May 2018 Consumer Price Index, All Urban Consumers, Water and Sewer and Trash Collection Services (Series ID CUUR0000SEHG) at the national level. The sum of the nine cost component percentage weights equals 100 percent of operating costs for purposes of OCAF calculations. To calculate the OCAFs, state-level cost component weights developed from AFS data are multiplied by the selected inflation factors. For instance, if wages in Virginia comprised 50 percent of total operating cost expenses and increased by 4 percent from 2017 to 2018 the wage increase component of the Virginia OCAF for 2019 would be 2.0 percent (50% * 4%). This 2.0 percent would then be added to the increases for the other eight expense categories to calculate the 2019 OCAF for Virginia. For states where the calculated OCAF is less than zero, the OCAF is floored at zero. The OCAFs for 2019 are included as an Appendix to this Notice. II. MAHRA OCAF Procedures Sections 514 and 515 of MAHRA, as amended, created the Mark-to- Market program to reduce the cost of federal housing assistance, to enhance HUD's administration of such assistance, and to ensure the continued affordability of units in certain multifamily housing projects. Section 524 of MAHRA authorizes renewal of Section 8 project- based assistance contracts for projects without restructuring plans under the Mark-to-Market program, including projects that are not eligible for a restructuring plan and those for which the owner does not request such a plan. Renewals must be at rents not exceeding comparable market rents except for certain projects. As an example, for Section 8 Moderate Rehabilitation projects, other than single room occupancy projects (SROs) under the McKinney-Vento Homeless Assistance Act (42 U.S.C. 11301 et seq.), that are eligible for renewal under section 524(b)(3) of MAHRA, the renewal rents are required to be set at the lesser of: (1) The existing rents under the expiring contract, as adjusted by the OCAF; (2) fair market rents (less any amounts allowed for tenant-purchased utilities); or (3) comparable market rents for the market area. III. Findings and Certifications Environmental Impact This notice sets forth rate determinations and related external administrative requirements and procedures that 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). Paperwork Reduction Act This notice does not impact the information collection requirements already submitted to the Office of Management and Budget (OMB) under the Paperwork Reduction Act of 1995 (44 U.S.C. 3501-3520). In accordance with the Paperwork Reduction Act, an agency may not conduct or sponsor, and a person is not required to respond to, a collection of information unless the collection displays a currently valid OMB control number. Catalog of Federal Domestic Assistance Number The Catalog of Federal Domestic Assistance Number for this program is 14.195. Dated: November 14, 2018. Brian D. Montgomery, Assistant Secretary for Housing, Federal Housing Commissioner. Appendix Operating Cost Adjustment Factors for 2019 ------------------------------------------------------------------------ State OCAF (%) ------------------------------------------------------------------------ Alabama................................................. 2.9 Alaska.................................................. 3.5 Arizona................................................. 2.7 Arkansas................................................ 2.8 California.............................................. 2.9 Colorado................................................ 2.7 Connecticut............................................. 3.1 Delaware................................................ 2.6 District of Columbia.................................... 3.0 Florida................................................. 2.9 Georgia................................................. 2.9 Hawaii.................................................. 3.2 Idaho................................................... 2.7 Illinois................................................ 3.1 Indiana................................................. 2.8 Iowa.................................................... 3.2 Kansas.................................................. 2.6 Kentucky................................................ 2.7 Louisiana............................................... 2.6 Maine................................................... 3.0 Maryland................................................ 2.7 Massachusetts........................................... 2.8 Michigan................................................ 2.7 Minnesota............................................... 3.0 Mississippi............................................. 3.0 Missouri................................................ 2.6 Montana................................................. 2.6 Nebraska................................................ 3.0 Nevada.................................................. 2.7 New Hampshire........................................... 3.2 New Jersey.............................................. 3.1 New Mexico.............................................. 3.2 New York................................................ 3.1 North Carolina.......................................... 2.6 North Dakota............................................ 2.8 [[Page 59406]] Ohio.................................................... 2.7 Oklahoma................................................ 2.7 Oregon.................................................. 2.6 Pacific Islands......................................... 3.2 Pennsylvania............................................ 2.9 Puerto Rico............................................. 2.6 Rhode Island............................................ 2.5 South Carolina.......................................... 2.7 South Dakota............................................ 2.8 Tennessee............................................... 2.7 Texas................................................... 2.9 Utah.................................................... 2.6 Vermont................................................. 0.9 Virgin Islands.......................................... 2.5 Virginia................................................ 2.6 Washington.............................................. 2.7 West Virginia........................................... 2.6 Wisconsin............................................... 3.0 Wyoming................................................. 2.7 U.S..................................................... 2.9 ------------------------------------------------------------------------ [FR Doc. 2018-25440 Filed 11-21-18; 8:45 am] BILLING CODE 4210-67-P
![59404 Federal Register / Vol. 83, No. 226 / Friday, November 23, 2018 / Notices
receive remarks from DHS leadership Dated: November 16, 2018. operating cost adjustment factor
and other senior Federal officials Ginger K. Norris, established by the Secretary.’’ The sole
regarding their report on Catastrophic Designated Federal Officer, National limitation to this grant of authority is a
Power Outages. Additionally, the NIAC Infrastructure Advisory Council, National specific requirement in each of the
will deliberate and vote on their final Protection and Programs Directorate, foregoing provisions that application of
Department of Homeland Security. an OCAF ‘‘shall not result in a negative
recommendations for this current report
as tasked by the National Security [FR Doc. 2018–25524 Filed 11–21–18; 8:45 am] adjustment.’’ Contract rents are adjusted
Council. BILLING CODE 9110–9P–P by applying the OCAF to that portion of
the rent attributable to operating
Agenda expenses exclusive of debt service.
DEPARTMENT OF HOUSING AND The OCAFs provided in this notice
I. Opening of Meeting
URBAN DEVELOPMENT are applicable to eligible projects having
II. Roll Call of Members a contract anniversary date of February
[Docket No. FR–6128–N–01]
III. Opening Remarks and Introductions 11, 2019 or after and were calculated
Notice of Certain Operating Cost using the same method as those
IV. Approval of June 2018 Meeting
Adjustment Factors for 2019 published in HUD’s 2018 OCAF notice
Minutes
published on November 2, 2017 (82 FR
V. Public Comment Catastrophic Power AGENCY: Office of the Assistant 50888). Specifically, OCAFs are
Outage Report Secretary for Housing—Federal Housing calculated as the sum of weighted
VI. Catastrophic Power Outage Report Commissioner, HUD. component cost changes for wages,
Deliberations ACTION: Notice. employee benefits, property taxes,
insurance, supplies and equipment, fuel
VII. Discussion of New NIAC Business SUMMARY: This notice establishes oil, electricity, natural gas, and water/
VIII. Closing Remarks operating cost adjustment factors sewer/trash using publicly available
(OCAFs) for project-based assistance indices. The weights used in the OCAF
IX. Adjournment
contracts issued under Section 8 of the calculations for each of the nine cost
Public Participation United States Housing Act of 1937 and component groupings are set using
renewed under the Multifamily Assisted current percentages attributable to each
Meeting Registration Information Housing Reform and Affordability Act of the nine expense categories. These
Due to limited seating, requests to of 1997 (MAHRA) for eligible weights are calculated in the same
attend in person will be accepted and multifamily housing projects having an manner as in the November 2, 2017
processed in the order in which they are anniversary date on or after February 11, notice. Average expense proportions
2019. OCAFs are annual factors used to were calculated using three years of
received. Individuals may register to
adjust Section 8 rents renewed under audited Annual Financial Statements
attend the NIAC meeting by sending an
section 515 or section 524 of MAHRA. from projects covered by OCAFs. The
email to NIAC@hq.dhs.gov. For those
DATES: Applicability Date: February 11, expenditure percentages for these nine
who cannot attend in person, the
2019. categories have been found to be very
meeting’s proceedings will also be
available via webcast at FOR FURTHER INFORMATION CONTACT: stable over time but using three years of
www.whitehouse.gov/live. Carissa Janis, Program Analyst, Office of data increases their stability. The nine
Asset Management and Portfolio cost component weights were calculated
Public Comment Oversight, Department of Housing and at the state level, which is the lowest
Urban Development, 451 7th Street SW, level of geographical aggregation with
While this meeting is open to the Washington, DC 20410; telephone enough projects to permit statistical
public, participation in NIAC number 202–402–2487 (this is not a toll- analysis. These data were not available
deliberations are limited to council free number). Hearing- or speech- for the Western Pacific Islands, so data
members. A public comment period will impaired individuals may access this for Hawaii were used as the best
be held during the meeting from number through TTY by calling the toll- available indicator of OCAFs for these
approximately 10:30 a.m.–10:45 a.m. free Federal Relay Service at 800–877– areas.
EST. Speakers who wish to comment on 8339. The best current price data sources for
the draft catastrophic power outage SUPPLEMENTARY INFORMATION: the nine cost categories were used in
report must register in advance and can calculating annual change factors. State-
do so by emailing NIAC@hq.dhs.gov no I. OCAFs level data for fuel oil, electricity, and
later than Wednesday, December 12, Section 514(e)(2) and section 524(c)(1) natural gas from Department of Energy
2018, at 5 p.m. EST. Speakers are of MAHRA (42 U.S.C. 1437f note) surveys are relatively current and
requested to limit their comments to require HUD to establish guidelines for continue to be used. Data on changes in
three minutes. Please note that the the development of OCAFs for rent employee benefits, insurance, property
public comment period may end before adjustments. Sections 524(a)(4)(C)(i), taxes, and water/sewer/trash costs are
the time indicated, following the last 524(b)(1)(A), and 524(b)(3)(A) of only available at the national level. The
call for comments. MAHRA, all of which prescribe the use data sources for the nine cost indicators
of the OCAF in the calculation of selected used were as follows:
Information on Services for Individuals renewal rents, contain similar language. • Labor Costs: First quarter, 2018
amozie on DSK3GDR082PROD with NOTICES1
With Disabilities HUD has therefore used a single Bureau of Labor Statistics (BLS) ECI,
methodology for establishing OCAFs, Private Industry Wages and Salaries, All
For information on facilities or which vary among states and territories. Workers (Series ID CIU2020000000000I)
services for individuals with disabilities MAHRA gives HUD broad discretion at the national level and Private
or to request special assistance at the in setting OCAFs, referring, for example, Industry Benefits, All Workers (Series
meeting, contact NIAC@hq.dhs.gov as in sections 524(a)(4)(C)(i), 524(b)(1)(A), ID CIU2030000000000I) at the national
soon as possible. 524(b)(3)(A) and 524(c)(1) simply to ‘‘an level.
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![59406 Federal Register / Vol. 83, No. 226 / Friday, November 23, 2018 / Notices
OPERATING COST ADJUSTMENT Number 1018–0119 in the subject line of scientific and commercial information
FACTORS FOR 2019—Continued your comments. received through the public comment
FOR FURTHER INFORMATION CONTACT: To period, information solicitation, or other
OCAF request additional information about means related to conservation efforts
State (%) this ICR, contact Madonna L. Baucum, when making listing determinations.
Service Information Collection The Service maintains that in every
Ohio ...................................... 2.7 proposed or final listing decision, we
Oklahoma ............................. 2.7 Clearance Officer, by email at Info_
Coll@fws.gov, or by telephone at (703) articulate the species’ needs, the threats
Oregon .................................. 2.6
Pacific Islands ....................... 3.2 358–2503. You may also view the ICR to the species and its response to those
Pennsylvania ........................ 2.9 at http://www.reginfo.gov/public/do/ threats, and any actions that may
Puerto Rico ........................... 2.6 PRAMain. ameliorate or exacerbate those threats.
Rhode Island ........................ 2.5 Each particular situation is unique, but
South Carolina ...................... 2.7
SUPPLEMENTARY INFORMATION: In in the Service’s final PECE, we
South Dakota ........................ 2.8 accordance with the Paperwork articulated the non-exhaustive list of
Tennessee ............................ 2.7 Reduction Act of 1995, we provide the criteria that we would use to evaluate
Texas .................................... 2.9 general public and other Federal each conservation effort that did not
Utah ...................................... 2.6 agencies with an opportunity to have a track record of implementation
Vermont ................................ 0.9 comment on new, proposed, revised, or effectiveness. The Service is required
Virgin Islands ........................ 2.5 and continuing collections of
Virginia .................................. 2.6
to consider best available scientific and
information. This helps us assess the commercial information in making
Washington ........................... 2.7 impact of our information collection
West Virginia ........................ 2.6 listing decisions, including information
Wisconsin ............................. 3.0
requirements and minimize the public’s on conservation efforts that do not have
Wyoming ............................... 2.7 reporting burden. It also helps the a track record of implementation or
U.S ........................................ 2.9 public understand our information effectiveness. The Service evaluates the
collection requirements and provide the certainty of implementation and
[FR Doc. 2018–25440 Filed 11–21–18; 8:45 am] requested data in the desired format. effectiveness by considering the criteria
BILLING CODE 4210–67–P A Federal Register notice with a 60- in the PECE, and those efforts that meet
day public comment period soliciting the PECE standard of sufficiently certain
comments on this collection of to be implemented and effective are
DEPARTMENT OF THE INTERIOR information was published on February then evaluated in the status assessment
28, 2018 (83 FR 8698). The following for the species. The Service understands
Fish and Wildlife Service comments were received: that stakeholders want a transparent and
Comment 1: Letter dated April 30, flexible process, and the Service is open
[FWS–HQ–ES–2018–N145; MO# 300030113;
OMB Control Number 1018–0119]
2018, from Myles P. Culhane, Assistant to communication and collaboration
General Counsel, Occidental Petroleum with these stakeholders which will
Agency Information Collection Corporation. Received via email on encourage conservation of species.
Activities; Submission to the Office of April 30, 2018. Comment 2: Letter dated April 27,
Management and Budget for Review Occidental Petroleum Corporation 2018, from Steve Wright, General
and Approval; Policy for Evaluation of provided comments on whether PECE is Manager, Public Utility District No. 1 of
Conservation Efforts When Making necessary to the proper functions of the Chelan County, WA. Received via email
Listing Decisions (PECE) Service, whether we will use the on May, 7, 2018.
information in a timely manner, and Chelan Public Utility District No. 1
AGENCY: Fish and Wildlife Service, how to enhance the information being commented that it finds PECE useful
Interior. collected. They stated that PECE is very because it encourages aggregation of
ACTION: Notice of information collection; important to encourage voluntary information about conservation efforts,
request for comment. conservation efforts prior to listing which can provide notice to permit
decisions such that listing may not be applicants and other entities possibly
SUMMARY: In accordance with the
necessary. They offered three affected by a listing, both of the listing
Paperwork Reduction Act of 1995, we,
suggestions to improve information and the efforts. It can also encourage
the U.S. Fish and Wildlife Service, are
collection in the context of specific entities to participate in conservation
proposing to renew an information
listing decisions: efforts, which can be meaningful for
collection with revisions. (1) Ensure that we are collecting the species. It finds that encouraging
DATES: Interested persons are invited to right types of information by conservation efforts is consistent with
submit comments on or before considering what will be useful in the ESA and benefits species.
December 24, 2018. predicting future conservation actions FWS Response to Comment 2: The
ADDRESSES: Send written comments on and results, and articulating the factors Service appreciates the District’s
this information collection request (ICR) we think will inform such predictions, comments about the utility and benefits
to the Office of Management and (2) Ensure that we have the ability to of PECE.
Budget’s Desk Officer for the update our listing decisions up until the We are again soliciting comments on
Department of the Interior by email at last minute regarding current the proposed ICR that is described
OIRA_Submission@omb.eop.gov; or via information about conservation efforts, below. We are especially interested in
facsimile to (202) 395–5806. Please and public comment addressing the
amozie on DSK3GDR082PROD with NOTICES1
provide a copy of your comments to the (3) Ensure that PECE analyses are following issues: (1) Is the collection
Service Information Collection cumulative and include all qualifying necessary to the proper functions of the
Clearance Officer, U.S. Fish and conservation efforts together rather than Service; (2) will this information be
Wildlife Service, MS: BPHC, 5275 in isolation. processed and used in a timely manner;
Leesburg Pike, Falls Church, VA 22041– FWS Response to Comment 1: The (3) is the estimate of burden accurate;
3803 (mail); or by email to Info_Coll@ Service appreciates this comment and (4) how might the Service enhance the
fws.gov. Please reference OMB Control does consider the best available quality, utility, and clarity of the
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Document Created: 2018-11-27 12:58:41
Document Modified: 2018-11-27 12:58:41
| Category | Regulatory Information | |
| Collection | Federal Register | |
| sudoc Class | AE 2.7: GS 4.107: AE 2.106: | |
| Publisher | Office of the Federal Register, National Archives and Records Administration | |
| Section | Notices | |
| Action | Notice. | |
| Dates | Applicability Date: February 11, 2019. | |
| Contact | Carissa Janis, Program Analyst, Office of Asset Management and Portfolio Oversight, Department of Housing and Urban Development, 451 7th Street SW, Washington, DC 20410; telephone number 202-402-2487 (this is not a toll-free number). Hearing- or speech-impaired individuals may access this number through TTY by calling the toll-free Federal Relay Service at 800-877-8339. | |
| FR Citation | 83 FR 59404 |
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