[Federal Register Volume 88, Number 70 (Wednesday, April 12, 2023)]
[Notices]
[Pages 22060-22061]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2023-07720]
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DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
[Docket No. FR-6384-N-01]
Section 8 Housing Assistance Payments Program-Fiscal Year (FY)
2023 Inflation Factors for Public Housing Agency (PHA) Renewal Funding
AGENCY: Office of the Assistant Secretary for Policy Development and
Research, HUD.
ACTION: Notice.
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SUMMARY: This notice establishes Renewal Funding Inflation Factors
(RFIFs) to adjust Fiscal Year (FY) 2023 renewal funding for the Housing
Choice Voucher (HCV) Program of each public housing agency (PHA), as
required by the Consolidated Appropriations Act, 2023. The notice
apportions the expected percent change in national Per Unit Cost (PUC)
for the HCV program, 9.60 percent, to each PHA based on the change in
Fair Market Rents (FMRs) for their operating area to produce the FY
2023 RFIFs. HUD's FY 2023 methodology is the same as that which was
used in FY 2022.
DATES: Applicability Date: April 12, 2023.
FOR FURTHER INFORMATION CONTACT: Miguel A. Fontanez, Director, Housing
Voucher Financial Division, Office of Public Housing and Voucher
Programs, Office of Public and Indian Housing, telephone number 202-
402-4212; or Adam Bibler, Program Parameters and
[[Page 22061]]
Research Division, Office of Policy Development and Research, telephone
number 202-402-6057, for technical information regarding the
development of the schedules for specific areas or the methods used for
calculating the inflation factors. Their mailing address is: Department
of Housing and Urban Development, 451 7th Street SW, Washington, DC
20410. HUD welcomes and is prepared to receive calls from individuals
who are deaf or hard of hearing, as well as individuals with speech or
communication disabilities. To learn more about how to make an
accessible telephone call, please visit https://www.fcc.gov/consumers/guides/telecommunications-relay-service-trs.
SUPPLEMENTARY INFORMATION:
I. Background
Division L, Title II of the Consolidated Appropriations Act, 2023
requires that the HUD Secretary, for the calendar year 2023 funding
cycle, provide renewal funding for each public housing agency (PHA)
based on validated voucher management system (VMS) leasing and cost
data for the prior calendar year and by applying an inflation factor as
established by the Secretary, by notice published in the Federal
Register. This notice announces the availability of the FY 2023
inflation factors and describes the methodology for calculating them.
Tables in PDF and Microsoft Excel formats showing Renewal Funding
Inflation Factors (RFIFs) by HUD Fair Market Rent Area are available
electronically from the HUD data information page at: https://www.huduser.gov/portal/datasets/rfif/rfif.html.
II. Methodology
RFIFs are used to adjust the allocation of Housing Choice Voucher
(HCV) program funds to PHAs for local changes in rents, utility costs,
and tenant incomes. To calculate the RFIFs, HUD first forecasts a
national inflation factor, which is the annual change in the national
average Per Unit Cost (PUC). HUD then calculates individual area
inflation factors, which are based on the annual changes in the two-
bedroom Fair Market Rent (FMR) for each area. Finally, HUD adjusts the
individual area inflation factors to be consistent with the national
inflation factor.
HUD's forecast of the national average PUC is based on forecasts of
gross rent and tenant income. Each forecast is produced using
historical and forecasted macroeconomic data as independent variables,
where the forecasts are consistent with the Economic Assumptions of the
Administration's FY 2023 Budget. The forecast of gross rent is itself
based on forecasts of the Consumer Price Index (CPI) Rent of Primary
Residence Index and the CPI Fuels and Utilities Index. Forecasted
values of these series are applied to the FY 2023 national average two-
bedroom FMR to produce a CY 2023 value. A ``notional'' PUC is
calculated as the difference between gross rent value and 30 percent of
tenant income (the standard for tenant rent contribution in the voucher
program). The change between the forecasted CY 2023 notional PUC and
the CY 2022 notional PUC is the expected national change in PUC, or
9.60 percent. HUD uses a notional PUC as opposed to the actual PUC to
project costs that are consistent with PHAs leasing the same number and
quality of units. For more information on HUD's forecast methodology,
see 82 FR 26710.
The inflation factor for an individual geographic area is based on
the annualized change in the area's FMR between FY 2022 and FY 2023.
These changes in FMRs are then scaled such that the voucher-weighted
average of all individual area inflation factors is equal to the
national inflation factor, i.e., the expected annual change in national
PUC from CY 2022 to CY 2023, and such that no area has a factor less
than one. For PHAs operating in multiple FMR areas, HUD calculates a
voucher-weighted average inflation factor based on the count of
vouchers in each FMR area administered by the PHA as captured in HUD
administrative data as of December 31, 2022.
III. The Use of Inflation Factors
HUD subsequently applies the calculated individual area inflation
factors to eligible renewal funding for each PHA based on VMS leasing
and cost data for the prior calendar year.
IV. Geographic Areas and Area Definitions
As explained above, inflation factors based on area FMR changes are
produced for all FMR areas and applied to eligible renewal funding for
each PHA. The tables showing the RFIFs, available electronically from
the HUD data information page, list the inflation factors for each FMR
area on a state-by-state basis. The inflation factors use the same OMB
metropolitan area definitions, as revised by HUD, that are used in the
FY 2023 FMRs. PHAs should refer to the Area Definitions Table on the
following web page to make certain that they are referencing the
correct inflation factors: http://www.huduser.org/portal/datasets/rfif/FY2023/FY2023_RFIF_FMR_AREA_REPORT.pdf. The Area Definitions Table
lists areas in alphabetical order by state, and the counties associated
with each area. In the six New England states, the listings are for
counties or parts of counties as defined by towns or cities. HUD is
also releasing the data in Microsoft Excel format to assist users who
may wish to use these data in other calculations. The Excel file is
available at https://www.huduser.gov/portal/datasets/rfif/rfif.html.
Note that, as described earlier, the actual renewal funding inflation
factor applied to agency funding will be the voucher-weighted average
of the FMR area factors when the PHA operates in multiple areas.
V. Environmental Impact
This notice involves a statutorily required establishment of a rate
or cost determination which does 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).
Solomon Greene,
Principal Deputy Assistant Secretary for Policy Development and
Research.
[FR Doc. 2023-07720 Filed 4-11-23; 8:45 am]
BILLING CODE 4210-67-P