[Federal Register Volume 77, Number 224 (Tuesday, November 20, 2012)]
[Notices]
[Pages 69651-69658]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2012-28086]
=======================================================================
-----------------------------------------------------------------------
DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
[Docket No. FR-5668-N-01]
Final Fair Market Rents for the Housing Choice Voucher Program
for Small Area Fair Market Rent Demonstration Program Participants;
Fiscal Year 2013
AGENCY: Office of the Assistant Secretary for Policy Development and
Research, HUD.
ACTION: Notice of Final Fiscal Year (FY) 2013 Fair Market Rents (FMRs)
for selected Public Housing Authorities (PHAs) participating in the
Small Area FMR Demonstration.
-----------------------------------------------------------------------
SUMMARY: Section 8(c)(1) of the United States Housing Act of 1937
(USHA) requires the Secretary to publish FMRs periodically, but not
less than annually, adjusted to be effective on October 1 of each year.
This notice publishes the FMRs for the Housing Choice Voucher (HCV)
Program for those PHAs selected to participate in the Small Area FMR
Demonstration Program. Only those PHAs that have agreed to participate
in the Demonstration are authorized to use these Small Area FMRs within
their metropolitan operating areas.
DATES: Effective Date: The FMRs published in this notice are effective
on October 1, 2012.
FOR FURTHER INFORMATION CONTACT: For general information regarding
FMRs, please call the HUD USER information line at 800-245-2691 or
access the information on the HUD USER Web site http://www.huduser.org/portal/datasets/fmr.html.
Questions related to use of Small Area FMRs or voucher payment
standards should be directed to the respective local HUD program staff.
Technical questions concerning the methodology used to develop Small
Area FMRs may be addressed to Geoffrey B. Newton or Peter B. Kahn,
Economic and Market Analysis Division, Office of Economic Affairs,
Office of Policy Development and Research, telephone 202-708-0590.
Persons with hearing or speech impairments may access this number
through TTY by calling the toll-free Federal Relay Service at 800-877-
8339. (Other than the HUD USER information line and TDD numbers,
telephone numbers are not toll-free.)
Electronic Data Availability: This Federal Register notice is
available electronically from the HUD User page at http://www.huduser.org/datasets/fmr.html. Federal Register notices also are
available electronically from http://www.gpoaccess.gov/fr/index.html,
the U.S. Government Printing Office Web site. Complete documentation of
the methodology and data used to compute each area's final FY 2013 FMRs
is available at http://www.huduser.org/portal/datasets/fmr/fmrs/docsys.html&data=fmr13. Final FY 2013 FMRs are available in a variety
of electronic formats at http://www.huduser.org/portal/datasets/fmr.html.
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 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). 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. In addition, all rents subsidized under the
HCV program must meet reasonable rent standards. Small Area FMRs
(SAFMRs) are subject to all of the same rules and regulations that
govern the use of all other FMRs.
II. Procedures for the Development of FMRs
Section 8(c) of the USHA requires the Secretary of HUD to publish
FMRs periodically, but not less frequently than annually. Section 8(c)
states, in part, as follows:
Proposed fair market rentals for an area shall be published in
the Federal Register with reasonable time for public comment and
shall become effective upon the date of publication in final form in
the Federal Register. Each fair market rental in effect under this
subsection 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, of rents for existing or newly constructed rental dwelling
units, as the case may be, of various sizes and types in this
section.
[[Page 69652]]
III. Small Area Fair Market Rents
Small Area FMRs represent a fundamentally different way of
operating the voucher program in metropolitan areas; therefore, HUD is
testing SAFMRs through a demonstration program to better understand the
programmatic impacts of changing the way voucher payment standards are
set. The purpose of the demonstration program is two-fold: (1) HUD
needs to evaluate the demonstration project in terms of effectiveness
in meeting the primary goal of improving tenants' housing choices in
areas of opportunity while also assessing the impact on tenants in
areas with SAFMRs below the metropolitan-wide FMR, and (2) HUD wants to
understand and evaluate the administrative and budget impacts of
converting and operating the tenant-based voucher program using SAFMRs.
SAFMRs are calculated using a rent ratio determined by dividing the
median gross rent across all bedrooms for the small area (a ZIP code)
by the similar median gross rent for the metropolitan area covering the
ZIP code. This rent ratio is multiplied by the current two- bedroom
rent for the entire metropolitan area containing the small area to
generate the current year two-bedroom SAFMR. 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. The methodology used to
determine the two-bedroom rent for the entire metropolitan area is
identical to the methods used to calculate FY 2013 FMRs.
For FY 2013 SAFMRs, HUD has implemented two changes to the rent
ratio calculation methodology. First, HUD has updated the 2005-2009 5-
year ACS based ZIP code median gross rent data with 2006-2010 5-year
ZIP Code Tabulation Area (ZCTA) median gross rent data. The use of the
more current ACS data is consistent with the update process in the FMR
methodology. However, the change from ZIP code to ZCTA was a change
that the Bureau of the Census made for its aggregation process. The
Census Bureau required the change to ZCTA data from ZIP code data
because ZCTAs are a standard Census geography. Furthermore, The Census
Bureau will not continue to support both ZIP code and ZCTA based
tabulations due to concerns that ACS respondents' confidentiality could
be compromised. Second, HUD expanded the criteria for determining the
statistical reliability of the small area rent data in order to ensure
that more SAFMRs are based on the data collected from the small area as
opposed to using data from the parent county as a proxy. This change is
consistent with the changes in the FMR methodology that eliminated the
use of the statistical Z-test.\1\
---------------------------------------------------------------------------
\1\ HUD has provided numerous detailed accounts of the
calculation methodology used for Small Area Fair Market Rents.
Please see our Federal Register notice of April 20, 2011 (76 FR
22125) for more information regarding the calculation methodology.
Also, HUD's Final FY 2013 FMR documentation system available at
(http://www.huduser.org/portal/datasets/fmr/fmrs/docsys.html&data=fmr13) contains detailed calculations for each ZIP
code area in which Small Area FMR Demonstration participants
operate.
---------------------------------------------------------------------------
IV. Small Area FMR Demonstration Invitation Process
HUD set out to create fair treatment and control groups of PHAs to
objectively evaluate the impacts of SAFMRs. Eligible PHAs, as described
below, were stratified into eight groups for local PHAs, with one
additional group for state PHAs that met the criteria. HUD randomly
selected which PHAs within each group would be offered the opportunity
to participate and a monetary incentive to do so. No PHA was compelled
to participate, and no PHA could participate unless randomly selected
to receive the offer.
HUD's Office of Policy Development and Research (PD&R) compiled
statistics on PHAs, and in consultation with HUD's Public and Indian
Housing (PIH) Office of Housing Voucher Programs, produced a list of
PHAs eligible for random selection to participate in the Small Area FMR
Demonstration. The set of eligible PHAs is defined as follows: (1)
Metropolitan PHAs that have at least 500 voucher tenants, (2) have at
least 10 voucher tenants living in ZIP codes where the SAFMR exceeds
the metropolitan FMR by more than 10 percent; (3) have at least 10
voucher tenants living in ZIP codes where the small area FMR is more
than 10 percent below the metropolitan FMR; (4) have attained at least
95 percent voucher family reporting in the PIH Information Center
(PIC); (5) are not ``troubled'' as determined by SEMAP; (6) have the
administrative capacity as determined by PIH's Office of Field
Operations; and (7) not be involved in litigation that would seriously
impede their ability to administer the vouchers.
Participating PHAs (and alternates) were randomly selected from
stratified sets of eligible PHAs. Selected PHAs were presented with the
participation agreement, including an offer of supplemental
administrative fees to cover the necessary expenses they will have to
incur, and given the option to decline to participate. These fees are
only to be used for administrative expenses related to the
implementation of Small Area FMRs and in no way used for Housing
Assistance Payments. If a PHA declined to participate, an offer was
presented to the next alternate until the full slate of demonstration
PHAs was established.
V. Small Area FMR Demonstration Participants
Following the process of presenting invitations to eligible PHAs,
the following have agreed to participate in the Demonstration: \2\
---------------------------------------------------------------------------
\2\ Additionally, all PHAs operating within the Dallas, TX HUD
Metropolitan FMR Area will continue to manage their voucher programs
using Small Area FMRs. These Small Area FMRs were released in a
previous Federal Register Notice.
1. The Chattanooga (TN) Housing Authority.
2. The Housing Authority of the City of Laredo (TX).
3. The Housing Authority of the City of Long Beach (CA).
4. The Housing Authority of the County of Cook (IL).
5. The Town of Mamaroneck (NY) Public Housing Agency.
The ZIP Code-level Small Area FMRs for all known and anticipated
metropolitan ZIP codes for these five PHAs are included in Schedule B
of this Notice. Additional SAFMRs are available at in the Small Area
FMR section of http://www.huduser.org/portal/datasets/fmr.html.
VI. Environmental Impact
This Notice involves the establishment of Fair Market Rent
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 proposed to be amended as shown in the
Appendix to this notice:
Dated: October 23, 2012.
Erika C. Poethig,
Acting Assistant Secretary for Policy Development and Research.
BILLING CODE 4210-67-P
[[Page 69653]]
[GRAPHIC] [TIFF OMITTED] TN20NO12.003
[[Page 69654]]
[GRAPHIC] [TIFF OMITTED] TN20NO12.004
[[Page 69655]]
[GRAPHIC] [TIFF OMITTED] TN20NO12.005
[[Page 69656]]
[GRAPHIC] [TIFF OMITTED] TN20NO12.006
[[Page 69657]]
[GRAPHIC] [TIFF OMITTED] TN20NO12.007
[[Page 69658]]
[FR Doc. 2012-28086 Filed 11-19-12; 8:45 am]
BILLING CODE 4210-67-C