Final Fair Market Rents for the Housing Choice Voucher Program for Small Area Fair Market Rent Demonstration Program Participants; Fiscal Year 2013, 69651-69658 [2012-28086]

Download as PDF Federal Register / Vol. 77, No. 224 / Tuesday, November 20, 2012 / Notices Estimated Number of Respondents: 20. Estimated Number of Responses per Respondent: 18. Estimated Number of Total Annual Responses: 360. Estimated Total Annual Burden Hours: 90. Dated: November 14, 2012. Tracey Denning, Agency Clearance Officer, U.S. Customs and Border Protection. [FR Doc. 2012–28123 Filed 11–19–12; 8:45 am] Border Protection, 1300 Pennsylvania Avenue NW., Suite 1500N, Washington, DC 20229, 202–344–1060. Dated: November 14, 2012. Ira S. Reese, Executive Director, Laboratories and Scientific Services. [FR Doc. 2012–28211 Filed 11–19–12; 8:45 am] BILLING CODE 9111–14–P DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT BILLING CODE 9111–14–P [Docket No. FR–5668–N–01] DEPARTMENT OF HOMELAND SECURITY Final Fair Market Rents for the Housing Choice Voucher Program for Small Area Fair Market Rent Demonstration Program Participants; Fiscal Year 2013 U.S. Customs and Border Protection Approval of SGS North America, Inc., as a Commercial Gauger U.S. Customs and Border Protection, Department of Homeland Security. ACTION: Notice of approval of SGS North America, Inc., as a commercial gauger. AGENCY: Notice is hereby given that, pursuant to 19 CFR 151.13, SGS North America, Inc., 4701 East Napoleon (Hwy 90), Sulphur, LA 70663, has been approved to gauge petroleum, petroleum products, organic chemicals and vegetable oils for customs purposes, in accordance with the provisions of 19 CFR 151.13. Anyone wishing to employ this entity to conduct gauger services should request and receive written assurances from the entity that it is approved by the U.S. Customs and Border Protection to conduct the specific gauger service requested. Alternatively, inquires regarding the specific gauger service this entity is approved to perform may be directed to the U.S. Customs and Border Protection by calling (202) 344–1060. The inquiry may also be sent to cbp.labhq@dhs.gov. Please reference the Web site listed below for a complete listing of CBP approved gaugers and accredited laboratories. http://www.cbp.gov/linkhandler/cgov/ trade/basic_trade/ labs_scientific_svcs/ commercial_gaugers/gaulist.ctt/ gaulist.pdf SUMMARY: The approval of SGS North America, Inc., as commercial gauger became effective on May 22, 2012. The next triennial inspection date will be scheduled for May 2015. FOR FURTHER INFORMATION CONTACT: Stephen Cassata, Laboratories and Scientific Services, U.S. Customs and wreier-aviles on DSK5TPTVN1PROD with DATES: VerDate Mar<15>2010 15:12 Nov 19, 2012 Jkt 229001 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. AGENCY: 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. SUMMARY: PO 00000 Frm 00062 Fmt 4703 Sfmt 4703 69651 (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. E:\FR\FM\20NON1.SGM 20NON1 69652 Federal Register / Vol. 77, No. 224 / Tuesday, November 20, 2012 / Notices III. Small Area Fair Market Rents wreier-aviles on DSK5TPTVN1PROD with 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 tenantbased 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 twobedroom 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 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 VerDate Mar<15>2010 15:12 Nov 19, 2012 Jkt 229001 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 Ztest.1 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 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. PO 00000 Frm 00063 Fmt 4703 Sfmt 4703 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 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 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. E:\FR\FM\20NON1.SGM 20NON1 VerDate Mar<15>2010 15:12 Nov 19, 2012 Jkt 229001 PO 00000 Frm 00064 Fmt 4703 Sfmt 4725 E:\FR\FM\20NON1.SGM 20NON1 69653 EN20NO12.003</GPH> wreier-aviles on DSK5TPTVN1PROD with Federal Register / Vol. 77, No. 224 / Tuesday, November 20, 2012 / Notices VerDate Mar<15>2010 Federal Register / Vol. 77, No. 224 / Tuesday, November 20, 2012 / Notices 15:12 Nov 19, 2012 Jkt 229001 PO 00000 Frm 00065 Fmt 4703 Sfmt 4725 E:\FR\FM\20NON1.SGM 20NON1 EN20NO12.004</GPH> wreier-aviles on DSK5TPTVN1PROD with 69654 VerDate Mar<15>2010 15:12 Nov 19, 2012 Jkt 229001 PO 00000 Frm 00066 Fmt 4703 Sfmt 4725 E:\FR\FM\20NON1.SGM 20NON1 69655 EN20NO12.005</GPH> wreier-aviles on DSK5TPTVN1PROD with Federal Register / Vol. 77, No. 224 / Tuesday, November 20, 2012 / Notices VerDate Mar<15>2010 Federal Register / Vol. 77, No. 224 / Tuesday, November 20, 2012 / Notices 15:12 Nov 19, 2012 Jkt 229001 PO 00000 Frm 00067 Fmt 4703 Sfmt 4725 E:\FR\FM\20NON1.SGM 20NON1 EN20NO12.006</GPH> wreier-aviles on DSK5TPTVN1PROD with 69656 VerDate Mar<15>2010 15:12 Nov 19, 2012 Jkt 229001 PO 00000 Frm 00068 Fmt 4703 Sfmt 9990 E:\FR\FM\20NON1.SGM 20NON1 69657 EN20NO12.007</GPH> wreier-aviles on DSK5TPTVN1PROD with Federal Register / Vol. 77, No. 224 / Tuesday, November 20, 2012 / Notices 69658 Federal Register / Vol. 77, No. 224 / Tuesday, November 20, 2012 / Notices [FR Doc. 2012–28086 Filed 11–19–12; 8:45 am] BILLING CODE 4210–67–C INTERNATIONAL TRADE COMMISSION Government in the Sunshine Act Meeting Notice [USITC SE–12–033] United States International Trade Commission. TIME AND DATE: November 27, 2012 at 11:00 a.m. PLACE: Room 101, 500 E Street SW., Washington, DC 20436, Telephone: (202) 205–2000. STATUS: Open to the public. MATTERS TO BE CONSIDERED: 1. Agendas for future meetings: none 2. Minutes 3. Ratification List 4. Vote in Inv. No. 731–TA–921 (Second Review) (Folding Gift Boxes from China). The Commission is currently scheduled to transmit its determination and Commissioners’ opinions to the Secretary of Commerce on or before December 10, 2012. 5. Outstanding action jackets: none In accordance with Commission policy, subject matter listed above, not disposed of at the scheduled meeting, may be carried over to the agenda of the following meeting. AGENCY HOLDING THE MEETING: Issued: November 16, 2012. By order of the Commission. William R. Bishop, Supervisory Hearings and Information Officer. [FR Doc. 2012–28267 Filed 11–16–12; 11:15 am] BILLING CODE 7020–02–P DEPARTMENT OF JUSTICE [OMB Number 1105–0080] Agency Information Collection Activities: Revision of a Currently Approved Collection: Annuity Broker Qualification Declaration Form 30-Day Notice of Information Collection Under Review. wreier-aviles on DSK5TPTVN1PROD with ACTION: The Department of Justice (DOJ), Civil Division, will be submitting the following information collection request to the Office of Management and Budget (OMB) for review and approval in accordance with the Paperwork Reduction Act of 1995. The proposed information collection is published to obtain comments from the public and VerDate Mar<15>2010 15:12 Nov 19, 2012 Jkt 229001 affected agencies. This proposed information collection was previously published in the Federal Register Volume 77, Number 179, page 56860 on September 14, 2012, allowing for a 60 day comment period. The purpose of this notice is to allow for an additional 30 days for public comment until December 20, 2012. This process is conducted in accordance with 5 CFR 1320.10. Written comments and/or suggestions regarding the items contained in this notice, especially the estimated public burden and associated response time, should be directed to the Office of Management and Budget, Office of Information and Regulatory Affairs, Attention Department of Justice Desk Officer, Washington, DC 20503. Additionally, comments may be submitted to OMB via facsimile to (202) 395–5806. Written comments and suggestions from the public and affected agencies concerning the proposed collection of information are encouraged. Your comments should address one or more of the following four points: —Evaluate whether the proposed collection of information is necessary for the proper performance of the functions of the agency, including whether the information will have practical utility; —Evaluate the accuracy of the agencies estimate of the burden of the proposed collection of information, including the validity of the methodology and assumptions used; —Enhance the quality, utility, and clarity of the information to be collected; and —Minimize the burden of the collection of information on those who are to respond, including through the use of appropriate automated, electronic, mechanical, or other technological collection techniques or other forms of information technology, e.g., permitting electronic submission of responses. Overview of This Information Collection (1) Type of Information Collection: Revision of a currently approved collection. (2) Title of the Form/Collection: Annuity Broker Qualification Declaration Form. (3) Agency form number, if any, and the applicable component of the Department sponsoring the collection: Civil Division, U.S. Department of Justice. (4) Affected public who will be asked or required to respond, as well as a brief abstract: Primary: Individuals. This PO 00000 Frm 00069 Fmt 4703 Sfmt 4703 declaration is to be submitted annually to determine whether a broker meets the qualifications to be listed as an annuity broker pursuant to Section 11015(b) of Public Law 107–273. (5) An estimate of the total number of respondents and the amount of time estimated for an average respondent to respond: It is estimated that 300 respondents will complete the form annually within approximately 1 hour. (6) An estimate of the total public burden (in hours) associated with the collection: The total estimated annual burden hours to complete the certification form is 300 hours. If additional information is required contact: Jerri Murray, Department Clearance Officer, United States Department of Justice, Justice Management Division, Policy and Planning Staff, 145 N Street NE., Room 3W–1407B, Washington, DC 20530. Dated: November 13, 2012. Jerri Murray, Department Clearance Officer for PRA, U.S. Department of Justice. [FR Doc. 2012–28081 Filed 11–19–12; 8:45 am] BILLING CODE 4410–12–P DEPARTMENT OF JUSTICE Office of Justice Programs [OMB No. 1121–NEW] Agency Information Collection Activities; Proposed Collection; Comment Request: Generic Clearance for Cognitive, Pilot and Field Studies for Bureau of Justice Statistics Data Collection Activities ACTION: 30-day Notice. The Department of Justice (DOJ), Office of Justice Programs, Bureau of Justice Statistics (BJS) will be submitting the following information collection request to the Office of Management and Budget (OMB) for review and approval in accordance with the Paperwork Reduction Act of 1995. The proposed information collection is published to obtain comments from the public and affected agencies. This proposed information collection was previously published in the Federal Register Volume 77, Number 179, page 56865 on September 14, 2012, allowing for a 60 day comment period. The purpose of this notice is to allow for an additional 30 days for public comment until December 20, 2012. This process is conducted in accordance with 5 CFR 1320.10. Written comments and/or suggestions regarding the items contained in this notice, especially the estimated public E:\FR\FM\20NON1.SGM 20NON1

Agencies

[Federal Register Volume 77, Number 224 (Tuesday, November 20, 2012)]
[Notices]
[Pages 69651-69658]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2012-28086]


=======================================================================
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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.
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[FR Doc. 2012-28086 Filed 11-19-12; 8:45 am]
BILLING CODE 4210-67-C