Section 8 Housing Assistance Payments Program-Contract Rent Annual Adjustment Factors, Fiscal Year 2009, 1229-1243 [E9-374]

Agencies

• DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

[Federal Register Volume 74, Number 7 (Monday, January 12, 2009)]
[Notices]
[Pages 1229-1243]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E9-374]


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DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

[Docket No. FR-5278-N-01]


Section 8 Housing Assistance Payments Program--Contract Rent 
Annual Adjustment Factors, Fiscal Year 2009

AGENCY: Office of the Secretary, HUD.

ACTION: Notice of Revised Contract Rent Annual Adjustment Factors.

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SUMMARY: The United States Housing Act of 1937 requires that assistance 
contracts signed by owners participating in the Department's Section 8 
housing assistance payments programs provide for annual adjustment in 
the monthly rentals for units covered by the contract. This notice 
announces revised Annual Adjustment Factors (AAFs) for adjustment of 
contract rents on assistance contract anniversaries. The factors are 
based on a formula using data on residential rent and utilities cost 
changes from the most current annual Bureau of Labor Statistics 
Consumer Price Index (CPI) survey. These factors are applied at Housing 
Assistance Payment (HAP) contract anniversaries for those calendar 
months commencing after the effective date of this notice.

DATES: Effective Date: January 12, 2009.

FOR FURTHER INFORMATION CONTACT: Contact David Vargas, Associate Deputy 
Assistant Secretary for Office of Public Housing and Voucher Programs, 
202-708-2815, for questions relating to the Project-Based Certificate, 
and Moderate Rehabilitation programs (non Single Room Occupancy); Ann 
Oliva, Office of Special Needs Assistance Programs, Office of Community 
Planning and Development, 202-708-4300 for questions regarding the 
Single Room Occupancy (SRO) Moderate Rehabilitation program; Willie 
Spearmon, Director, Office of Housing Assistance and Grant 
Administration, Office of Housing, 202-708-3000, for questions relating 
to all other section 8 programs; and Marie L. Lihn, Senior Economist, 
Economic and Market Analysis Division, Office of Policy Development and 
Research 202-708-0590, for technical information regarding the 
development of the schedules for specific areas or the methods used for 
calculating the AAFs. Mailing address for the above persons: Department 
of Housing and Urban Development, 451 7th Street, SW., Washington, DC 
20410. Hearing-or speech-impaired persons may contact the Federal 
Information Relay Service at 800-877-8339 (TTY). (Other than the 
``800'' TTY number, the above-listed telephone numbers are not toll 
free.)

SUPPLEMENTARY INFORMATION: In addition to being published in the 
Federal Register, these data will be available electronically from the 
HUD data information page at https://www.huduser.org/datasets/aaf.html.

I. Applying AAFs to Various Section 8 Programs

    AAFs established by this Notice are used to adjust contract rents 
for units assisted in certain Section 8 housing assistance payments 
programs during the initial (i.e., pre-renewal) term of the HAP 
contract and for all units in the Project-Based Certificate program. 
There are three categories of section 8 programs that use the AAFs:
    Category 1--The Section 8 New Construction and Substantial 
Rehabilitation programs and the Section 8 Moderate Rehabilitation 
program.
    Category 2--The Section 8 Loan Management (LM) and Property 
Disposition (PD) programs.
    Category 3--The Section 8 Project-Based Certificate (PBC) program.
    Each section 8 program category uses the AAFs differently. The 
specific application of the AAFs is determined by the law, the HAP 
contract, and appropriate program regulations or requirements.
    AAFs are not used in the following cases:
    Renewal Rents. With the exception of the Project-Based Certificate 
program, AAFs are not used to determine renewal rents after expiration 
of the original section 8 HAP contract (either for projects where the 
section 8 HAP contract is renewed under a restructuring plan adopted 
under 24 CFR part 401; or renewed without restructuring under 24 CFR 
part 402). In general, renewal rents are based on the applicable state-
by-state operating cost adjustment factor (OCAF) published by HUD; the 
OCAF is applied to the previous year's contract rent minus debt 
service.
    Budget-based Rents. AAFs are not used for budget-based rent 
adjustments. For projects receiving Section 8 subsidies under the LM 
program (24 CFR part 886, subpart A) and for projects receiving Section 
8 subsidies under the PD program (24 CFR part 886, subpart C), contract 
rents are adjusted, at HUD's option, either by applying the AAFs, or by 
budget-based adjustments in accordance with 24 CFR 886.112(b) and 24 
CFR 886.312(b). Budget-based adjustments are used for most section 8/
202 projects.
    Certificate Program. In the past, AAFs were used to adjust the 
contract rent (including manufactured home space rentals) in both the 
tenant-based and project-based certificate programs. The tenant-based 
certificate program has been terminated and all tenancies in the 
tenant-based certificate program have been converted to the Housing 
Choice Voucher Program, which does not use AAFs to adjust rents. All 
tenancies remaining in the project-based certificate program continue 
to use AAFs to adjust contract rent for outstanding HAP contracts.
    Voucher Program. AAFs are not used to adjust rents in the Tenant-
Based or the Project-Based Voucher programs.
    Moderate Rehabilitation Program. Under the Section 8 Moderate 
Rehabilitation program, (both the regular program and the single room 
occupancy program), the public housing agency (PHA) applies the AAF to 
the base rent component of the contract rent, not the full contract 
rent.

II. Adjustment Procedures

    This section of the notice provides a broad description of 
procedures for adjusting the contract rent. Technical details and 
requirements are described in HUD notices H 2002--10 (Section 8 New 
Construction and Substantial Rehabilitation, Loan Management, and 
Property Disposition) and PIH 97--57 (Moderate Rehabilitation and 
Project-Based Certificates).
    Because of statutory and structural distinctions among the various 
Section 8 programs, there are separate rent adjustment procedures for 
the three program categories:

Category 1: Section 8 New Construction, Substantial Rehabilitation, and 
Moderate Rehabilitation Programs

    In the section 8 New Construction and Substantial Rehabilitation 
programs, the published AAF factor is applied to the pre-adjustment 
contract rent. In the section 8 Moderate Rehabilitation program, the 
published AAF is applied to the pre-adjustment base rent.
    For Category 1 programs, the Table 1 AAF factor is applied before 
determining comparability (rent reasonableness). Comparability applies 
if the pre-adjustment gross rent (pre-adjustment contract rent plus any 
allowance for tenant-paid utilities) is

[[Page 1230]]

above the published Fair Market Rent (FMR).
    If the comparable rent level (plus any initial difference) is lower 
than the contract rent as adjusted by application of the Table 1 AAF, 
the comparable rent level (plus any initial difference) will be the new 
contract rent. However, the pre-adjustment contract rent will not be 
decreased by application of comparability.
    In all other cases (i.e., unless the contract rent is reduced by 
comparability):
     The Table 1 AAF is used for a unit occupied by a new 
family since the last annual contract anniversary.
     The Table 2 AAF is used for a unit occupied by the same 
family as at the time of the last annual contract anniversary.

Category 2: The Loan Management Program (24 CFR Part 886, Subpart A) 
and Property Disposition Program (24 CFR Part 886, Subpart C)

    At this time Category 2 programs are not subject to comparability. 
(Comparability will again apply if HUD establishes regulations for 
conducting comparability studies under 42 U.S.C. 1437f(c)(2)(C).) Rents 
are adjusted by applying the full amount of the applicable AAF under 
this notice.
    The applicable AAF is determined as follows:
     The Table 1 AAF is used for a unit occupied by a new 
family since the last annual contract anniversary.
     The Table 2 AAF is used for a unit occupied by the same 
family as at the time of the last annual contract anniversary.

Category 3: Section 8 Certificate Project-Based Certificate Program

    The following procedures are used to adjust contract rent for 
outstanding HAP contracts in the section 8 PBC program:
     The Table 2 AAF is always used. The Table 1 AAF is not 
used.
     The Table 2 AAF is always applied before determining 
comparability (rent reasonableness).
     Comparability always applies. If the comparable rent level 
is lower than the rent to owner (contract rent) as adjusted by 
application of the Table 2 AAF, the comparable rent level will be the 
new rent to owner.
     The new rent to owner will not be reduced below the 
contract rent on the effective date of the HAP contract.

III. When To Use Reduced AAFs (From AAF Table 2)

    In accordance with Section 8(c)(2)(A) of the United States Housing 
Act of 1937 (42 U.S.C. 1437f(c)(2)(A)), the AAF is reduced by 0.01:
     For all tenancies assisted in the Section 8 Project-Based 
Certificate program.
     In other Section 8 programs, for a unit occupied by the 
same family at the time of the last annual rent adjustment (and where 
the rent is not reduced by application of comparability (rent 
reasonableness)).
    The law provides that:

    Except for assistance under the certificate program, for any 
unit occupied by the same family at the time of the last annual 
rental adjustment, where the assistance contract provides for the 
adjustment of the maximum monthly rent by applying an annual 
adjustment factor and where the rent for a unit is otherwise 
eligible for an adjustment based on the full amount of the factor, 
0.01 shall be subtracted from the amount of the factor, except that 
the factor shall not be reduced to less than 1.0. In the case of 
assistance under the certificate program, 0.01 shall be subtracted 
from the amount of the annual adjustment factor (except that the 
factor shall not be reduced to less than 1.0), and the adjusted rent 
shall not exceed the rent for a comparable unassisted unit of 
similar quality, type and age in the market area. 42 U.S.C. 
1437f(c)(2)(A).

    To implement the law, HUD publishes two separate AAF Tables, 
contained in Schedule C, Tables 1 and 2 of this notice. The difference 
between Table 1 and Table 2 is that each AAF in Table 2 is 0.01 less 
than the corresponding AAF in Table 1. Where an AAF in Table 1 would 
otherwise be less than 1.0, it is set at 1.0, as required by statute; 
the corresponding AAF in Table 2 will also be set at 1.0, as required 
by statute.

IV. How To Find the AAF

    The AAFs are contained in Schedule C, Tables 1 and 2 of this 
notice. There are two columns in each table. The first column is used 
to adjust contract rent for units where the highest cost utility is 
included in the contract rent, i.e., where the owner pays for the 
highest cost utility. The second column is used where the highest cost 
utility is not included in the contract rent, i.e., where the tenant 
pays for the highest cost utility.
    The applicable AAF is selected as follows:
     Determine whether Table 1 or Table 2 is applicable. In 
Table 1 or Table 2, locate the AAF for the geographic area where the 
contract unit is located.
     Determine whether the highest cost utility is or is not 
included in contract rent for the contract unit.
     If highest cost utility is included, select the AAF from 
the column for ``highest cost included.'' If highest cost utility is 
not included, select the AAF from the column for ``utility excluded.''

V. Methodology

    AAFs are rent inflation factors. Two types of rent inflation 
factors are calculated for AAFs: Gross rent factors and shelter rent 
factors. The gross rent factor accounts for inflation in the cost of 
both the rent of the residence and the utilities used by the unit; the 
shelter rent factor accounts for the inflation in the rent of the 
residence, but does not include any change in the cost of utilities. 
The gross rent inflation factor is designated as ``Highest Cost Utility 
Included'' and the shelter rent inflation factor is designated as 
``Highest Cost Utility Excluded''.
    AAFs are calculated using CPI data on ``rent of primary residence'' 
and ``fuels and utilities''.\1\ The CPI inflation index for rent of 
primary residence measures the inflation of all surveyed units 
regardless of whether utilities are included in the rent of the unit or 
not. In other words, it measures the inflation of the ``contract rent'' 
which includes units with all utilities included in the rent, units 
with some utilities included in the rent and units with no utilities 
included in the rent. In producing a gross rent inflation factor and a 
shelter rent inflation factor, HUD decomposes the contract rent CPI 
inflation factor into parts to represent the gross rent change and the 
shelter rent change. This is done by applying the percentage of renters 
who pay for heat (a proxy for the percentage of renters who pay shelter 
rent) from the Consumer Expenditure Survey (CEX) and American Community 
Survey (ACS) data on the ratio of utilities to rents.\2\
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    \1\ CPI indexes CUUSA103SEHA and CUSR0000SAH2, respectively.
    \2\ The formulas used to produce these factors can be found in 
the Annual Adjustment Factors overview and in the FMR documentation 
at https://www.HUDUSER.org.
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Survey Data Used To Produce AAFs

    In this publication, the rent and utility inflation factors for 
large metropolitan areas and Census regions are based on changes in the 
rent of primary residence and fuels and utilities CPI indices from 2006 
to 2007. The CEX data used to decompose the contract rent inflation 
factor into gross rent and shelter rent inflation factors come from a 
special tabulation of 2006 CEX survey data produced for HUD for the 
purpose of computing AAFs. The utility-to-rent ratio used in the 
formula comes from 2006 ACS median rent and utility costs.

Geographic Areas

    AAFs are produced for all Class A CPI cities (CPI cities with a 
population of 1.5 million or more) and for the four

[[Page 1231]]

Census Regions. They are applied to core-based statistical areas 
(CBSAs), as defined by the Office of Management and Budget (OMB), 
according to how much of the CBSA is covered by the CPI city-survey. If 
more than 75 percent of the CBSA is covered by the CPI city-survey, the 
AAF that is based on that CPI survey is applied to the whole CBSA and 
to any HUD-defined metropolitan area, called ``HUD Metro FMR Area'' 
(HMFA), within that CBSA. If the CBSA is not covered by a CPI city-
survey, the CBSA uses the relevant regional CPI factor. Almost all non-
metropolitan counties use regional CPI factors.\3\ For areas assigned 
the Census Region CPI factor, both metropolitan and non-metropolitan 
areas receive the same factor.
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    \3\ There are four non-metropolitan counties that continue to 
use CPI city updates: Ashtabula County, OH, Henderson County, TX, 
Island County, WA, and Lenawee County, MI. BLS has not updated the 
geography underlying its survey for new OMB metropolitan area 
definitions, and these counties are no longer in metropolitan areas, 
but they are included as parts of CPI surveys because they meet the 
75 percent standard HUD imposes on survey coverage. These four 
counties are treated the same as metropolitan areas using CPI city 
data.
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    Each metropolitan area that uses a local CPI update factor is 
listed alphabetically in the tables, by state and each HMFA is listed 
alphabetically within its respective CBSA. Each AAF applies to a 
specified geographic area and to units of all bedroom sizes. AAFs are 
provided:
     For separate metropolitan areas, including HMFAs and 
counties that are currently designated as non-metropolitan, but are 
part of the metropolitan area defined in the local CPI survey.
     For the four Census Regions for those metropolitan and 
non-metropolitan areas that are not covered by a CPI city-survey.
    The AAFs shown in Schedule C use the same OMB metropolitan area 
definitions, as revised by HUD, that are used in the FY 2009 FMRs.

Area Definitions in Schedule C

    To make certain that they are using the correct AAFs, users should 
refer to the area definitions section at the end of Schedule C. For 
units located in metropolitan areas with a local CPI survey, AAFs are 
listed separately. For units located in areas without a local CPI 
survey, the metropolitan or nonmetropolitan counties receive the 
regional CPI for that Census Region.
    The AAF area definitions shown in Schedule C are listed in 
alphabetical order by state. The associated CPI region is shown next to 
each state name. Areas whose AAFs are determined by local CPI surveys 
are listed first. All metropolitan areas with local CPI surveys have 
separate AAF schedules and are shown with their corresponding county 
definitions or as metropolitan counties. In the six New England states, 
the listings are for counties or parts of counties as defined by towns 
or cities. The remaining counties use the CPI for the Census Region and 
are not specifically listed on Schedule C or the area file.
    Puerto Rico and the Virgin Islands use the South Region AAFs. All 
areas in Hawaii use the AAFs identified in the Table as ``STATE: 
Hawaii,'' which are based on the CPI survey for the Honolulu 
metropolitan area. The Pacific Islands use the West Region AAFs.
    Accordingly, HUD publishes these Annual Adjustment Factors for the 
Section 8 Housing Assistance Payments programs as set forth in the 
Tables.

    Dated: January 6, 2009.
Darlene F. Williams,
Assistant Secretary for Policy Development and Research.

  Schedule C--Contract Rent Annual Adjustment Factors--Area Definitions
------------------------------------------------------------------------
               CPI areas                          Counties/towns
------------------------------------------------------------------------
                             Alabama (South)
------------------------------------------------------------------------
All Counties in Alabama use the South
 Region AAF.
------------------------------------------------------------------------
                              Alaska (West)
------------------------------------------------------------------------
Anchorage, AK MSA:
    Metropolitan Area Components:
        Anchorage, AK HMFA.............  Anchorage.
        Matanuska-Susitna Borough, AK    Matanuska-Susitna.
         HMFA.
All other Boroughs use the West Region
 AAF.
------------------------------------------------------------------------
                             Arizona (West)
------------------------------------------------------------------------
Phoenix-Mesa-Scottsdale, AZ MSA........  Maricopa, Pinal.
All other Counties use the West Region
 AAF.
------------------------------------------------------------------------
                            Arkansas (South)
------------------------------------------------------------------------
All Counties in Arkansas use the South
 Region AAF.
------------------------------------------------------------------------
                            California (West)
------------------------------------------------------------------------
Los Angeles-Long Beach-Santa Ana, CA
 MSA:
    Metropolitan Area Components:
        Los Angeles-Long Beach, CA HMFA  Los Angeles.
        Orange County, CA HMFA.........  Orange.
Napa, CA MSA...........................  Napa.
Oxnard-Thousand Oaks-Ventura, CA MSA...  Ventura.
Riverside-San Bernardino-Ontario, CA     Riverside, San Bernardino.
 MSA.
San Diego-Carlsbad-San Marcos, CA MSA..  San Diego.
San Francisco-Oakland-Fremont, CA MSA
    Metropolitan Area Components:
        Oakland-Fremont, CA HMFA.......  Alameda, Contra Costa.

[[Page 1232]]

 
        San Francisco, CA HMFA.........  Marin, San Francisco, San
                                          Mateo.
San Jose-Sunnyvale-Santa Clara, CA MSA:
    Metropolitan Area Components:
        San Benito County, CA HMFA.....  San Benito.
        San Jose-Sunnydale-Santa Clara,  Santa Clara.
         CA HMFA.
Santa Cruz-Watsonville, CA MSA.........  Santa Cruz.
Santa Rosa-Petaluma, CA MSA............  Sonoma.
Vallejo-Fairfield, CA MSA:               Solano.
All other Counties in California use
 the West Region AAF.
------------------------------------------------------------------------
                             Colorado (West)
------------------------------------------------------------------------
Boulder, CO MSA........................  Boulder.
Denver-Aurora, CO MSA..................  Adams, Arapahoe, Broomfield,
                                          Clear Creek, Denver, Douglas,
                                          Elbert, Gilpin, Jefferson,
                                          Park.
Greeley, CO MSA........................  Weld.
All other Counties in Colorado use the
 West Region AAF.
------------------------------------------------------------------------
                         Connecticut (Northeast)
------------------------------------------------------------------------
Bridgeport-Stamford-Norwalk, CT MSA:
    Metropolitan Area Components:
        Bridgeport, CT HMFA............  Fairfield County towns of
                                          Bridgeport, Easton, Fairfield,
                                          Monroe, Shelton, Stratford,
                                          Trumbull.
        Danbury, CT HMFA...............  Fairfield County towns of
                                          Bethel, Brookfield, Danbury,
                                          New Fairfield, Newtown,
                                          Redding, Ridgefield, Sherman.
        Stamford-Norwalk, CT HMFA......  Fairfield County towns of
                                          Darien, Greenwich, New Canaan,
                                          Norwalk, Stamford, Weston,
                                          Westport, Wilton.
New Haven-Milford, CT MSA:
    Metropolitan Area Components:
        Milford-Ansonia-Seymour, CT      New Haven County towns of
         HMFA.                            Ansonia, Beacon Falls, Derby,
                                          Milford, Oxford, Seymour.
        New Haven-Meriden, CT HMFA.....  New Haven County towns of
                                          Bethany, Branford, Cheshire,
                                          East Haven, Guilford, Hamden,
                                          Madison, Meriden, New Haven,
                                          North Branford, North Haven,
                                          Orange, Wallingford, West
                                          Haven, Woodbridge.
        Waterbury, CT HMFA.............  New Haven County towns of
                                          Middlebury, Naugatuck,
                                          Prospect, Southbury,
                                          Waterbury, Wolcott.
All other Counties/Towns in Connecticut
 use the Northeast Region AAF.
------------------------------------------------------------------------
                            Delaware (South)
------------------------------------------------------------------------
Philadelphia-Camden-Wilmington, PA-NJ-   New Castle.
 DE-MD MSA.
All other Counties in Delaware use the
 South Region AAF.
------------------------------------------------------------------------
                        Dist. of Columbia (South)
------------------------------------------------------------------------
Washington-Arlington-Alexandria, DC-VA-  District of Columbia.
 MD HMFA.
------------------------------------------------------------------------
                             Florida (South)
------------------------------------------------------------------------
Miami-Fort Lauderdale-Pompano Beach, FL
 MSA:
    Metropolitan Area Components:
        Fort Lauderdale, FL HMFA.......  Broward.
        Miami-Miami Beach-Kendall, FL    Miami-Dade.
         HMFA.
        West Palm Beach-Boca Raton, FL   Palm Beach.
         HMFA.
Tampa-St. Petersburg-Clearwater, FL MSA  Hernando, Hillsborough, Pasco,
                                          Pinellas.
All other Counties in Florida use the
 South Region AAF.
------------------------------------------------------------------------
                             Georgia (South)
------------------------------------------------------------------------
Atlanta-Sandy Springs-Marietta, GA MSA:
    Metropolitan Area Components:
        Atlanta-Sandy Springs-Marietta,  Barrow, Bartow, Carroll,
         GA HMFA.                         Cherokee, Clayton, Cobb,
                                          Coweta, Dawson, DeKalb,
                                          Douglas, Fayette, Forsyth,
                                          Fulton, Gwinnett, Heard,
                                          Henry, Jasper, Newton,
                                          Paulding, Pickens, Pike,
                                          Rockdale, Spalding, Walton.
        Butts County, GA HMFA..........  Butts.
        Haralson County, GA HMFA.......  Haralson.
        Lamar County, GA HMFA..........  Lamar.
        Meriwether County, GA HMFA.....  Meriwether.
All other Counties in Georgia use the
 South Region AAF.
------------------------------------------------------------------------

[[Page 1233]]

 
                              Hawaii (West)
------------------------------------------------------------------------
STATE Hawaii...........................  Hawaii, Honolulu, Kalawao,
                                          Kauai, Maui.
------------------------------------------------------------------------
                              Idaho (West)
------------------------------------------------------------------------
All Counties in Idaho use the West
 Region AAF.
------------------------------------------------------------------------
                           Illinois (Midwest)
------------------------------------------------------------------------
Chicago-Naperville-Joliet, IL-IN-WI
 MSA:
    Metropolitan Area Components:
        Chicago-Naperville-Joliet, IL    Cook, DuPage, Kane, Lake,
         HMFA.                            McHenry, Will.
        De Kalb County, IL HMFA........  DeKalb.
        Grundy County, IL..............  Grundy.
        Kendall County, IL.............  Kendall.
Kankakee-Bradley, IL MSA...............  Kankakee.
St. Louis, MO-IL MSA:
    Metropolitan Area Components:
        Bond County, IL HMFA...........  Bond.
        Macoupin County, IL HMFA.......  Macoupin.
        St. Louis, MO-IL HMFA..........  Calhoun, Clinton, Jersey,
                                          Madison, Monroe, St. Clair.
All other Counties in Illinois use the
 Midwest Region AAF.
------------------------------------------------------------------------
                            Indiana (Midwest)
------------------------------------------------------------------------
Chicago-Naperville-Joliet, IL-IN-WI
 MSA:
    Metropolitan Area Components:
        Gary, IN HMFA..................  Lake, Newton, Porter.
        Jasper County, IN MFA..........  Jasper.
Cincinnati-Middleton, OH-KY-IN HMFA....  Dearborn, Franklin, Ohio.
All other Counties in Indiana use the
 Midwest Region AAF.
------------------------------------------------------------------------
                             Iowa (Midwest)
------------------------------------------------------------------------
All Counties in Iowa use the Midwest
 Region AAF.
------------------------------------------------------------------------
                            Kansas (Midwest)
------------------------------------------------------------------------
Kansas City, MO-KS MSA:
    Metropolitan Area Components:
        Franklin County, KS HMFA.......  Franklin.
        Kansas City, MO-KS HMFA........  Johnson, Leavenworth, Linn,
                                          Miami, Wyandotte.
All other Counties in Kansas use the
 Midwest Region AAF.
------------------------------------------------------------------------
                            Kentucky (South)
------------------------------------------------------------------------
Cincinnati-Middleton, OH-KY-IN MSA:
    Metropolitan Area Components:
        Cincinnati-Middleton OH-KY-IN    Boone, Bracken, Campbell,
         HMFA.                            Gallatin, Kenton, Pendleton.
        Grant County, KY HMFA..........  Grant.
All other Counties in Kentucky use the
 South Region AAF.
------------------------------------------------------------------------
                            Louisiana (South)
------------------------------------------------------------------------
All Parishes in Louisiana use the South
 Region AAF.
------------------------------------------------------------------------
                            Maine (Northeast)
------------------------------------------------------------------------
All Counties in Maine use the Northeast
 Region AAF.
------------------------------------------------------------------------
                            Maryland (South)
------------------------------------------------------------------------
Baltimore-Towson, MD MSA:
    Metropolitan Area Components:
        Baltimore-Towson, MD HMFA......  Anne Arundel, Baltimore,
                                          Carroll, Harford, Howard,
                                          Queen Anne's, Baltimore City.
        Columbia city, MD MSA..........
Hagerstown-Martinsburg, MD-WV MSA......  Washington.
Washington-Arlington-Alexandria, DC-VA-  Calvert, Charles, Frederick,
 MD HMFA.                                 Montgomery, Prince George's.
Philadelphia-Camden-Wilmington, PA-NJ-   Cecil.
 DE-MD MSA.
All other Counties in Maryland use the
 South Region AAF.
------------------------------------------------------------------------

[[Page 1234]]

 
                        Massachusetts (Northeast)
------------------------------------------------------------------------
Boston-Cambridge-Quincy, MA-NH MSA:
    Metropolitan Area Components:
        Boston-Cambridge-Quincy, MA-NH   Essex County towns of Amesbury,
         HMFA.                            Beverly city, Danvers, Essex,
                                          Gloucester city, Hamilton,
                                          Ipswich, Lynn city, Lynnfield,
                                          Manchester-by-the-Sea,
                                          Marblehead, Middleton, Nahant,
                                          Newbury, Newburyport city,
                                          Peabody city, Rockport,
                                          Rowley, Salem city, Salisbury,
                                          Saugus, Swampscott, Topsfield,
                                          Wenham.
                                         Middlesex County towns of
                                          Acton, Arlington, Ashby,
                                          Ashland, Ayer, Bedford,
                                          Belmont, Boxborough,
                                          Burlington, Cambridge city,
                                          Carlisle, Concord, Everett
                                          city, Framingham, Holliston,
                                          Hopkinton, Hudson, Lexington,
                                          Lincoln, Littleton, Malden
                                          city, Marlborough city,
                                          Maynard, Medford city, Melrose
                                          city, Natick, Newton city,
                                          North Reading, Reading,
                                          Sherborn, Shirley, Somerville,
                                          Stoneham, Stow, Sudbury,
                                          Townsend, Wakefield, Waltham
                                          city, Watertown city, Wayland,
                                          Weston, Wilmington,
                                          Winchester, Woburn city.
                                         Norfolk County towns of
                                          Bellingham, Braintree,
                                          Brookline, Canton, Cohasset,
                                          Dedham, Dover, Foxborough,
                                          Franklin city, Holbrook,
                                          Medfield, Medway, Millis,
                                          Milton, Needham, Norfolk,
                                          Norwood, Plainville, Quincy
                                          city, Randolph, Sharon,
                                          Stoughton, Walpole, Wellesley,
                                          Westwood, Weymouth, Wrentham.
Boston-Cambridge-Quincy, MA-NH MSA:
    Metropolitan Area Components:
        Boston-Cambridge-Quincy, MA-NH   Plymouth County towns of
         HMFA.                            Carver, Duxbury, Hanover,
                                          Hingham, Hull, Kingston,
                                          Marshfield, Norwell, Pembroke,
                                          Plymouth, Rockland, Scituate,
                                          Wareham.
                                         Suffolk county towns of Boston
                                          city, Chelsea city, Revere
                                          city, Winthrop.
        Brockton, MA HMFA..............  Norfolk County town of Avon.
                                         Plymouth County towns of
                                          Abington, Bridgewater,
                                          Brockton city, East
                                          Bridgewater, Halifax, Hanson,
                                          Lakeville, Marion,
                                          Mattapoisett, Middleborough,
                                          Plympton, Rochester, West
                                          Bridgewater town, Whitman.
        Lawrence, MA-NH HMFA...........  Essex County towns of Andover,
                                          Boxford, Georgetown,
                                          Groveland, Haverhill city,
                                          Lawrence city Merrimac,
                                          Methuen city, North Andover,
                                          West Newbury.
        Lowell, MA HMFA................  Middlesex County towns of
                                          Billerica, Chelmsford, Dracut,
                                          Dunstable, Groton, Lowell
                                          city, Pepperell, Tewksbury,
                                          Tyngsborough, Westford.
Worcester, MA MSA:
    Metropolitan Area Components:
        Eastern Worcester County, MA     Worcester County towns of
         HMFA.                            Berlin, Blackstone, Bolton,
                                          Harvard, Hopedale, Lancaster,
                                          Mendon, Milford, Millville,
                                          Southborough, Upton.
        Fitchburg-Leominster, MA HMFA..  Worcester County towns of
                                          Ashburnham, Fitchburg,
                                          Gardner, Leominster,
                                          Lunenburg, Templeton,
                                          Westminster, Winchendon.
        Western Worcester County, MA     Worcester County towns of
         HMFA.                            Athol, Hardwick, Hubbardston,
                                          New Braintree, Petersham,
                                          Phillipston, Royalston,
                                          Warren.
        Worcester, MA HMFA.............  Worcester County towns of
                                          Auburn, Barre, Boylston,
                                          Brookfield, Charlton, Clinton,
                                          Douglas, Dudley, East
                                          Brookfield, Grafton, Holden,
                                          Leicester, Millbury,
                                          Northborough, Northbridge,
                                          North Brookfield, Oakham,
                                          Oxford, Paxton, Princeton,
                                          Rutland, Shrewsbury,
                                          Southbridge, Spencer,
                                          Sterling, Sturbridge, Sutton,
                                          Uxbridge, Webster,
                                          Westborough, West Boylston,
                                          West Brookfield, Worcester.
All other Counties/Towns in
 Massachusetts use the Northeast Region
 AAF.
------------------------------------------------------------------------
                           Michigan (Midwest)
------------------------------------------------------------------------
Ann Arbor, MI MSA......................  Washtenaw.
Detroit-Warren-Livonia, MI MSA:
    Metropolitan Area Components:
        Detroit-Warren-Livonia, MI HMFA  Lapeer, Macomb, Oakland, St.
                                          Clair, Wayne.
        Livingston County, MI HMFA.....  Livingston.
Flint, MI MSA..........................  Genesee.
Lenawee County, MI.....................  Lenawee.
Monroe, MI MSA.........................  Monroe.
All other Counties in Michigan use the
 Midwest Region AAF.
------------------------------------------------------------------------

[[Page 1235]]

 
                           Minnesota (Midwest)
------------------------------------------------------------------------
Minneapolis-St. Paul-Bloomington, MN-WI  Anoka, Carver, Chisago, Dakota,
 MSA:                                     Hennepin, Isanti, Ramsey,
                                          Scott, Sherburne, Washington,
                                          Wright.
All other Counties in Minnesota use the
 Midwest Region AAF.
------------------------------------------------------------------------
                           Mississippi (South)
------------------------------------------------------------------------
All Counties in Mississippi use the
 South Region AAF.
------------------------------------------------------------------------
                           Missouri (Midwest)
------------------------------------------------------------------------
Kansas City, MO-KS MSA:
    Metropolitan Area Components:
        Bates County, MO HMFA..........  Bates.
        Kansas City, MO-KS HMFA........  Caldwell, Cass, Clay, Clinton,
                                          Jackson, Lafayette, Platte,
                                          Ray.
St. Louis, MO-IL MSA:
    Metropolitan Area Components:
        St. Louis, MO-IL HMFA..........  Sullivan city part of Crawford,
                                          Franklin, Jefferson, Lincoln,
                                          St. Charles, St. Louis,
                                          Warren, St. Louis city.
        Washington County, MO HMFA.....  Washington.
All other Counties in Missouri
 (including the rest of Crawford
 County) use the Midwest Region AAF.
------------------------------------------------------------------------
                             Montana (West)
------------------------------------------------------------------------
All Counties in Montana use the West
 Region AAF.
------------------------------------------------------------------------
                           Nebraska (Midwest)
------------------------------------------------------------------------
All Counties in Nebraska use the
 Midwest Region AAF.
------------------------------------------------------------------------
                              Nevada (West)
------------------------------------------------------------------------
All Counties in Nevada use the West
 Region AAF.
------------------------------------------------------------------------
                        New Hampshire (Northeast)
------------------------------------------------------------------------
Boston-Cambridge-Quincy, MA-NH MSA:
    Metropolitan Area Components:
        Boston-Cambridge-Quincy, MA-NH   Rockingham County towns of
         HMFA.                            Seabrook, South Hampton.
        Lawrence, MA-NH HMFA...........  Rockingham County towns of
                                          Atkinson, Chester, Danville,
                                          Derry, Fremont, Hampstead,
                                          Kingston, Newton, Plaistow,
                                          Raymond, Salem, Sandown,
                                          Windham.
        Portsmouth-Rochester, NH HMFA..  Rockingham County towns of
                                          Brentwood, East Kingston,
                                          Epping, Exeter, Greenland,
                                          Hampton, Hampton Falls,
                                          Kensington, New Castle,
                                          Newfields, Newington,
                                          Newmarket, North Hampton,
                                          Portsmouth, Rye, Stratham.
                                         Strafford County towns of
                                          Barrington, Dover, Durham,
                                          Farmington, Lee, Madbury,
                                          Middleton, Milton, New Durham,
                                          Rochester, Rollinsford,
                                          Somersworth, Strafford.
        Western Rockingham County, NH    Rockingham County towns of
         HMFA.                            Auburn, Candia, Deerfield,
                                          Londonderry, Northwood,
                                          Nottingham.
Manchester-Nashua, NH MSA:
    Metropolitan Area Components:
        Hillsborough County, NH (part)   Hillsborough County towns of
         HMFA.                            Antrim, Bennington, Deering,
                                          Francestown, Greenfield,
                                          Hancock, Hillsborough,
                                          Lyndeborough, New Boston,
                                          Peterborough, Sharon, Temple,
                                          Windsor.
        Manchester, NH HMFA............  Hillsborough County towns of
                                          Bedford, Goffstown,
                                          Manchester, Weare.
        Nashua, NH HMFA................  Hillsborough County towns of
                                          Amherst, Brookline,
                                          Greenville, Hollis, Hudson,
                                          Litchfield, Mason, Merrimack,
                                          Milford, Mont Vernon, Nashua,
                                          New Ipswich, Pelham, Wilton.
All other Counties/Towns in New
 Hampshire use Northeast Region AAF.
------------------------------------------------------------------------
                         New Jersey (Northeast)
------------------------------------------------------------------------
Atlantic City, NJ MSA..................  Atlantic.
New York-Northern New Jersey-Long
 Island, NY-NJ-PA MSA:
    Metropolitan Area Components:
        Bergen-Passaic, NJ HMFA........  Bergen, Passaic.
        Jersey City, NJ HMFA...........  Hudson.
        Middlesex-Somerset-Hunterdon,    Hunterdon, Middlesex, Somerset.
         NJ HMFA.

[[Page 1236]]

 
        New York-Monmouth-Ocean, NY-NJ   Monmouth, Ocean.
         HMFA.
        Newark, NJ HMFA................  Essex, Morris, Sussex, Union.
Ocean City, NJ MSA.....................  Cape May.
Philadelphia-Camden-Wilmington, PA-NJ-   Burlington, Camden, Gloucester,
 DE-MD MSA.                               Salem.
Trenton-Ewing, NJ MSA..................  Mercer.
Vineland-Millville-Bridgeton, NJ MSA...  Cumberland.
Warren County uses the Northeast Region
 AAF.
------------------------------------------------------------------------
                            New Mexico (West)
------------------------------------------------------------------------
All Counties in New Mexico use the West
 Region AAF.
------------------------------------------------------------------------
                          New York (Northeast)
------------------------------------------------------------------------
New York-Northern New Jersey-Long
 Island, NY-NJ-PA MSA:
    Metropolitan Area Components:
        Nassau-Suffolk, NY HMFA........  Nassau, Suffolk.
        New York-Monmouth-Ocean, NY-NJ   Bronx, Kings, New York, Putnam,
         HMFA.                            Queens, Richmond, Rockland.
        Westchester County, NY HMFA....  Westchester.
Poughkeepsie-Newburgh-Middletown, NY     Dutchess, Orange.
 MSA.
All other Counties in New York use the
 Northeast Region AAF.
------------------------------------------------------------------------
                         North Carolina (South)
------------------------------------------------------------------------
All Counties in North Carolina use the
 South Region AAF.
------------------------------------------------------------------------
                         North Dakota (Midwest)
------------------------------------------------------------------------
All Counties in North Dakota use the
 Midwest Region AAF.
------------------------------------------------------------------------
                             Ohio (Midwest)
------------------------------------------------------------------------
Akron, OH MSA..........................  Portage, Summit.
Ashtabula County, OH...................  Ashtabula.
Cincinnati-Middleton, OH-KY-IN MSA:
    Metropolitan Area Components:
        Brown County, OH HMFA..........  Brown.
        Cincinnati-Middleton OH-KY-IN    Butler, Clermont, Hamilton,
         HMFA.                            Warren.
Cleveland-Elyria-Mentor, OH............  Cuyahoga, Geauga, Lake, Lorain,
                                          Medina.
All other Counties in Ohio use the
 Midwest Region AAF.
------------------------------------------------------------------------
                            Oklahoma (South)
------------------------------------------------------------------------
All Counties in Oklahoma use the South
 Region AAF.
------------------------------------------------------------------------
                              Oregon (West)
------------------------------------------------------------------------
Portland-Vancouver-Beaverton, OR-WA MSA  Clackamas, Columbia, Multnomah,
                                          Washington, Yamhill.
Salem, OR MSA..........................  Marion, Polk.
All other Counties in Oregon use the
 West Region AAF.
------------------------------------------------------------------------
                        Pennsylvania (Northeast)
------------------------------------------------------------------------
New York-Northern New Jersey-Long
 Island, NY-NJ-PA MSA:
    Metropolitan Area Components:
        Pike County, PA HMFA...........  Pike.
Philadelphia-Camden-Wilmington, PA-NJ-   Bucks, Chester, Delaware,
 DE-MD MSA.                               Montgomery, Philadelphia.
Pittsburgh, PA MSA:
    Metropolitan Area Components:
        Armstrong County, PA HMFA......  Armstrong.
        Pittsburgh, PA HMFA............  Allegheny, Beaver, Butler,
                                          Fayette, Washington,
                                          Westmoreland.
All other Counties in Pennsylvania use
 the Northeast Region AAF.
------------------------------------------------------------------------
                        Rhode Island (Northeast)
------------------------------------------------------------------------
All Counties/Towns in Rhode Island use
 the Northeast Region AAF.
------------------------------------------------------------------------
                         South Carolina (South)
------------------------------------------------------------------------
All Counties in South Carolina use the
 South Region AAF.
------------------------------------------------------------------------

[[Page 1237]]

 
                         South Dakota (Midwest)
------------------------------------------------------------------------
All Counties in South Dakota use the
 Midwest Region AAF.
------------------------------------------------------------------------
                            Tennessee (South)
------------------------------------------------------------------------
All Counties in Tennessee use the South
 Region AAF.
------------------------------------------------------------------------
                              Texas (South)
------------------------------------------------------------------------
Dallas-Fort Worth-Arlington, TX MSA:
    Metropolitan Area Components:
        Dallas, TX HMFA................  Collin, Dallas, Delta, Denton,
                                          Ellis, Hunt, Kaufman,
                                          Rockwall.
        Fort Worth-Arlington, TX HMFA..  Johnson, Parker, Tarrant.
        Wise County, TX HMFA...........  Wise.
Henderson County, TX...................  Henderson.
Houston-Sugar Land-Baytown, TX MSA:
    Metropolitan Area Components:
        Austin, County, TX HMFA........  Austin.
        Brazoria County, TX HMFA.......  Brazoria.
Houston-Baytown-Sugar Land, TX HMFA....  Chambers, Fort Bend, Galveston,
                                          Harris, Liberty, Montgomery,
                                          San Jacinto, Waller.
All other Counties in Texas use the
 South Region AAF.
------------------------------------------------------------------------
                               Utah (West)
------------------------------------------------------------------------
All Counties in Utah use the West
 Region AAF.
------------------------------------------------------------------------
                           Vermont (Northeast)
------------------------------------------------------------------------
All Counties/Towns in Vermont use the
 Northeast Region AAF.
------------------------------------------------------------------------
                            Virginia (South)
------------------------------------------------------------------------
Washington-Arlington-Alexandria, DC-VA-
 MD-WV MSA:
    Metropolitan Area Components:
        Warren County, VA HMFA.........  Warren.
        Washington-Arlington-            Arlington, Clarke, Fairfax,
         Alexandria, DC-VA-MD HMFA.       Fauquier, Loudoun, Prince
                                          William, Spotsylvania,
                                          Stafford, Alexandria city,
                                          Fairfax city, Falls Church
                                          city, Fredericksburg city,
                                          Manassas Park city, Manassas
                                          city.
All other Counties/Cities in Virginia
 use the South Region AAF.
------------------------------------------------------------------------
                            Washington (West)
------------------------------------------------------------------------
Bremerton-Silverdale, WA MSA...........  Kitsap.
Island County, WA......................  Island.
Olympia, WA MSA........................  Thurston.
Portland-Vancouver, OR-WA MSA..........  Clark, Skamania.
Seattle-Tacoma-Bellevue, WA MSA:
    Metropolitan Area Components:
        Seattle-Bellevue, WA HMFA......  King, Snohomish.
        Tacoma, WA HMFA................  Pierce.
All other Counties in Washington use
 the West Region AAF.
------------------------------------------------------------------------
                          West Virginia (South)
------------------------------------------------------------------------
Hagerstown-Martinsburg, MD-WV MSA......  Berkeley, Morgan.
Washington-Arlington-Alexandria, DC-VA-
 MD-WV MSA:
    Metropolitan Area Components:
        Jefferson County, WV HMFA......  Jefferson.
All other Counties in West Virginia use
 the South Region AAF.
------------------------------------------------------------------------
                           Wisconsin (Midwest)
------------------------------------------------------------------------
Milwaukee-Waukesha-West Allis, WI MSA..  Milwaukee, Ozaukee, Washington,
                                          Waukesha.
Minneapolis-St. Paul-Bloomington, MN-WI  Pierce, St. Croix.
 MSA.
Racine, WI MSA.........................  Racine.
All other areas of Wisconsin use the
 Midwest Region AAF.
------------------------------------------------------------------------
                             Wyoming (West)
------------------------------------------------------------------------
All Counties in Wyoming use the West
 Region AAF.
------------------------------------------------------------------------

[[Page 1238]]

 
                         Pacific Islands (West)
------------------------------------------------------------------------
The American Samoa, Guam, Northern
 Mariana Islands, and Palau use the
 West Region AAF.
------------------------------------------------------------------------
                           Puerto Rico (South)
------------------------------------------------------------------------
All Municipios use the South Region AAF
------------------------------------------------------------------------
                         Virgin Islands (South)
------------------------------------------------------------------------
The U.S. Virgin Islands use the South
 Region AAF.
------------------------------------------------------------------------


              Schedule C--Table 1--2009 Contract Rent AAFS
------------------------------------------------------------------------
                                                  Highest cost utility
                                               -------------------------
                                                  Included     Excluded
------------------------------------------------------------------------
Midwest Region................................        1.026        1.021
Northeast Region..............................        1.039        1.035
South Region..................................        1.040        1.050
West Region...................................        1.040        1.040
Akron, OH MSA.................................        1.015        1.025
Anchorage, AK MSA.............................        1.037        1.015
Metropolitan Area Components:
    Anchorage, AK HMFA
    Matanuska-Susitna Borough, AK HMFA
Ann Arbor, MI MSA.............................        1.018        1.023
Ashtabula County, OH..........................        1.014        1.025
Atlanta-Sandy Springs-Marietta, GA MSA........        1.046        1.050
Metropolitan Area Components:
    Atlanta-Sandy Springs-Marietta, GA HMFA
    Butts County, GA HMFA
    Haralson County, GA HMFA
    Lamar County, GA HMFA
    Meriwether County, GA HMFA
Atlantic City-Hammonton, NJ MSA...............        1.042        1.043
Baltimore-Towson, MD MSA......................        1.058        1.042
Metropolitan Area Components:
    Baltimore-Towson, MD HMFA
    Columbia city, MD HMFA
Boston-Cambridge-Quincy, MA-NH MSA............        1.024        1.029
Metropolitan Area Components:
    Boston-Cambridge-Quincy, MA-NH HMFA
    Brockton, MA HMFA
    Lawrence, MA-NH HMFA
    Lowell, MA HMFA
    Portsmouth-Rochester, NH HMFA
    Western Rockingham County, NH HMFA
Boulder, CO MSA...............................        1.007        1.015
Bremerton-Silverdale, WA MSA..................        1.066        1.067
Bridgeport-Stamford-Norwalk, CT MSA...........        1.046        1.044
Metropolitan Area Components:
    Bridgeport, CT HMFA
    Danbury, CT HMFA
    Stamford-Norwalk, CT HMFA
Chicago-Naperville-Joliet, IL-IN-WI MSA.......        1.056        1.030
Metropolitan Area Components:
    Chicago-Naperville-Joliet, IL HMFA
    DeKalb County, IL HMFA
    Gary, IN HMFA
    Grundy County, IL HMFA
    Jasper County, IN HMFA
    Kendall County, IL HMFA
    Kenosha County, WI HMFA
Cincinnati-Middletown, OH-KY-IN MSA...........        1.027        1.022
Metropolitan Area Components:
    Brown County, OH HMFA
    Cincinnati-Middleton, OH-KY-IN HMFA
    Grant County, KY HMFA
Cleveland-Elyria-Mentor, OH MSA...............        1.015        1.025

[[Page 1239]]

 
Dallas-Fort Worth-Arlington, TX MSA...........        1.018        1.026
Metropolitan Area Components:
    Dallas, TX HMFA
    Fort Worth-Arlington, TX HMFA
    Wise County, TX HMFA
Denver-Aurora, CO MSA.........................        1.006        1.016
Detroit-Warren-Livonia, MI MSA................        1.015        1.024
Metropolitan Area Components:
    Detroit-Warren-Livonia, MI HMFA
    Livingston County, MI HMFA
Flint, MI MSA.................................        1.013        1.024
Greeley, CO MSA...............................        1.002        1.016
HAWAII........................................        1.078        1.081
Hagerstown-Martinsburg, MD-WV MSA.............        1.061        1.040
Metropolitan Area Components:
    Hagerstown, MD HMFA
    Martinsburg, WV HMFA
Henderson County, TX..........................        1.016        1.027
Houston-Sugar Land-Baytown, TX MSA............        1.009        1.023
    Metropolitan Area Components:
    Austin County, TX HMFA
    Brazoria County, TX HMFA
    Houston-Baytown-Sugar Land, TX HMFA
Island County, WA.............................        1.065        1.067
Kankakee-Bradley, IL MSA......................        1.063        1.025
Kansas City, MO-KS MSA........................        1.042        1.037
Metropolitan Area Components:
    Bates County, MO HMFA
    Franklin County, KS HMFA
    Kansas City, MO-KS HMFA
Lenawee County, MI............................        1.014        1.024
Los Angeles-Long Beach-Santa Ana, CA MSA......        1.057        1.062
Metropolitan Area Components:
    Los Angeles-Long Beach, CA HMFA
    Orange County, CA HMFA
Manchester-Nashua, NH MSA.....................        1.024        1.030
Metropolitan Area Components:
    Hillsborough County, NH (part) HMFA
    Manchester, NH HMFA
    Nashua, NH HMFA
Miami-Fort Lauderdale-Pompano Beach, FL MSA...        1.067        1.083
Metropolitan Area Components:
    Fort Lauderdale, FL HMFA
    Miami-Miami Beach-Kendall, FL HMFA
    West Palm Beach-Boca Raton, FL HMFA
Milwaukee-Waukesha-West Allis, WI MSA.........        1.022        1.025
Minneapolis-St. Paul-Bloomington, MN-WI MSA...        1.025        1.027
Monroe, MI MSA................................        1.014        1.024
Napa, CA MSA..................................        1.039        1.039
New Haven-Milford, CT MSA.....................        1.046        1.044
Metropolitan Area Components:
    Milford-Ansonia-Seymour, CT HMFA
    New Haven-Meriden, CT HMFA
    Waterbury, CT HMFA
New York-Northern New Jersey-Long Island, NY-         1.046        1.044
 NJ-PA MSA....................................
Metropolitan Area Components:
    Bergen-Passaic, NJ HMFA
    Jersey City, NJ HMFA
    Middlesex-Somerset-Hunterdon, NJ HMFA
    Monmouth-Ocean, NJ HMFA
    Nassau-Suffolk, NY HMFA
    New York, NY HMFA
    Newark, NJ HMFA
    Pike County, PA HMFA
    Westchester County, NY Statutory Exception
     Area
Ocean City, NJ MSA............................        1.042        1.043
Olympia, WA MSA...............................        1.066        1.067
Oxnard-Thousand Oaks-Ventura, CA MSA..........        1.058        1.062
Philadelphia-Camden-Wilmington, PA-NJ-DE-MD           1.042        1.043
 MSA..........................................
Phoenix-Mesa-Scottsdale, AZ MSA...............        1.060        1.061

[[Page 1240]]

 
Pittsburgh, PA MSA............................        1.040        1.036
Metropolitan Area Components:
    Armstrong County, PA HMFA
    Pittsburgh, PA HMFA
Portland-Vancouver-Beaverton, OR-WA MSA.......        1.052        1.050
Poughkeepsie-Newburgh-Middletown, NY MSA......        1.046        1.044
Racine, WI MSA................................        1.021        1.025
Riverside-San Bernardino-Ontario, CA MSA......        1.054        1.062
Salem, OR MSA.................................        1.052        1.050
San Diego-Carlsbad-San Marcos, CA MSA.........        1.035        1.037
San Francisco-Oakland-Fremont, CA MSA.........        1.039        1.039
Metropolitan Area Components:
    Oakland-Fremont, CA HMFA
    San Francisco, CA HMFA
San Jose-Sunnyvale-Santa Clara, CA MSA........        1.039        1.039
Metropolitan Area Components:
    San Benito County, CA HMFA
    San Jose-Sunnyvale-Santa Clara, CA HMFA
Santa Cruz-Watsonville, CA MSA................        1.039        1.039
Santa Rosa-Petaluma, CA MSA...................        1.039        1.039
Seattle-Tacoma-Bellevue, WA MSA...............        1.066        1.067
Metropolitan Area Components:
    Seattle-Bellevue, WA HMFA
    Tacoma, WA HMFA
St. Louis, MO-IL MSA..........................        1.019        1.025
Metropolitan Area Components:
    Bond County, IL HMFA
    Macoupin County, IL HMFA
    St. Louis, MO-IL HMFA
    Washington County, MO HMFA
Tampa-St. Petersburg-Clearwater, FL MSA.......        1.064        1.072
Trenton-Ewing, NJ MSA.........................        1.046        1.044
Vallejo-Fairfield, CA MSA.....................        1.039        1.039
Vineland-Millville-Bridgeton, NJ MSA..........        1.043        1.044
Washington-Arlington-Alexandria, DC-VA-MD-WV          1.056        1.043
 MSA..........................................
Metropolitan Area Components:
    Jefferson County, WV HMFA
    Warren County, VA HMFA
    Washington-Arlington-Alexandria, DC-VA-MD
     HMFA
Worcester, MA MSA.............................        1.023        1.030
Metropolitan Area Components:
    Eastern Worcester County, MA HMFA
    Fitchburg-Leominster, MA HMFA
    Western Worcester County, MA HMFA
    Worcester, MA HMFA
------------------------------------------------------------------------


              Schedule C--Table 2--2009 Contract Rent AAFS
------------------------------------------------------------------------
                                                  Highest cost utility
                                               -------------------------
                                                  Included     Excluded
------------------------------------------------------------------------
Midwest Region................................        1.016        1.011
Northeast Region..............................        1.029        1.025
South Region..................................        1.030        1.040
West Region...................................        1.030        1.030
Akron, OH MSA.................................        1.005        1.015
Anchorage, AK MSA.............................        1.027        1.005
Metropolitan Area Components:
    Anchorage, AK HMFA
    Matanuska-Susitna Borough, AK HMFA
Ann Arbor, MI MSA.............................        1.008        1.013
Ashtabula County, OH..........................        1.004        1.015
Atlanta-Sandy Springs-Marietta, GA MSA........        1.036        1.040
Metropolitan Area Components:
    Atlanta-Sandy Springs-Marietta, GA HMFA
    Butts County, GA HMFA
    Haralson County, GA HMFA
    Lamar County, GA HMFA
    Meriwether County, GA HMFA

[[Page 1241]]

 
Atlantic City-Hammonton, NJ MSA...............        1.032        1.033
Baltimore-Towson, MD MSA......................        1.048        1.032
Metropolitan Area Components:
    Baltimore-Towson, MD HMFA
    Colu