Section 8 Housing Assistance Payments Program-Fiscal Year (FY) 2013 Inflation Factors for Public Housing Agency (PHA) Renewal Funding, 34666-34667 [2013-13555]

Download as PDF 34666 Federal Register / Vol. 78, No. 111 / Monday, June 10, 2013 / Notices enhanced going forward. Additionally, the HSIN Program will obtain advice from the HSINAC on the current communication efforts regarding migration and how these efforts could be more effective. Æ HSIN Release 3 Value Proposition • The HSIN Release 3 platform has advanced features and functionalities associated with the upgrade. The HSIN Program is seeking advice from the HSINAC on how to best communicate the value proposition—including its advanced features/functionalities, enhanced security measures, and advanced information sharing capabilities—to the enterprise-wide user community. Æ 15 minute public comment period Æ HSINAC deliberation session and vote on recommendations Dated: June 3, 2013. James Lanoue, HSIN Acting Program Manager. [FR Doc. 2013–13617 Filed 6–7–13; 8:45 am] BILLING CODE 9110–9B–P DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT [Docket No. FR–5718–N–01] Section 8 Housing Assistance Payments Program—Fiscal Year (FY) 2013 Inflation Factors for Public Housing Agency (PHA) Renewal Funding Office of the Assistant Secretary for Policy Development and Research, HUD. ACTION: Notice. AGENCY: The FY 2013 HUD Appropriations Act requires that HUD apply ‘‘an inflation factor as established by the Secretary, by notice published in the Federal Register’’ to adjust FY 2013 renewal funding for the Tenant-based Rental Assistance Program or Housing Choice Voucher (HCV) Program of each PHA. For FY 2011 and FY 2010, renewal funding was based on annual adjustment factors (AAFs) and HUD published separate Renewal Funding AAFs for this purpose. These Renewal Funding AAFs, based only on Consumer Price Index (CPI) data for rents and utilities, were replaced for FY 2012 by inflation factors that incorporate additional economic indices to measure the expected change in the per unit cost (PUC) for the HCV program. The methodology for FY 2013 remains unchanged from that used in FY 2012. DATES: Effective Date: June 10, 2013. FOR FURTHER INFORMATION CONTACT: Michael S. Dennis, Director, Housing mstockstill on DSK4VPTVN1PROD with NOTICES SUMMARY: VerDate Mar<15>2010 16:56 Jun 07, 2013 Jkt 229001 Voucher Programs, Office of Public Housing and Voucher Programs, Office of Public and Indian Housing, telephone number 202–708–1380; or Peter B. Kahn, Director, Economic and Market Analysis Division, Office of Policy Development and Research, telephone number 202–402–2409, for technical information regarding the development of the schedules for specific areas or the methods used for calculating the inflation factors, Department of Housing and Urban Development, 451 7th Street SW., Washington, DC 20410. Hearing- or speech-impaired persons may contact the Federal Relay Service at 800–877– 8339 (TTY). (Other than the ‘‘800’’ TTY number, the above-listed telephone numbers are not toll free.) SUPPLEMENTARY INFORMATION: I. Background Tables showing Renewal Funding Inflation Factors will be available electronically from the HUD data information page at: https:// www.huduser.org/portal/datasets/rfif/ FY2013/FY2013_IF_Table.pdf. In prior years, the Department of Housing and Urban Development has been using Renewal Funding AAFs based on Consumer Price Index data published by the Bureau of Labor Statistics on ‘‘rent of primary residence’’ and ‘‘fuels and utilities’’ as the inflation factor to calculate the renewal funding for each PHA. During this period, HUD undertook several projects to better understand the drivers of the annual change in housing subsidy costs for the tenant-based voucher program. Division F, Title VIII, Consolidated and Further Continuing Appropriations Act, 2013 (Pub. L. 113–6, approved March 26, 2013) requires that the HUD Secretary, for the calendar year 2013 funding cycle, provide renewal funding for each public housing agency (PHA) based on validated voucher management system (VMS) leasing and cost data for the prior calendar year and by applying an inflation factor as established by the Secretary, by notice published in the Federal Register. This notice provides the FY 2013 inflation factors and describes the methodology for calculating them. II. Methodology The Department has focused on measuring the change in average PUC as captured in HUD’s administrative data in VMS. In order to predict the likely path of PUC over time, HUD has implemented a model that uses several economic indices that capture key components of the economic climate and assist in explaining the changes in PUC. These economic components are PO 00000 Frm 00032 Fmt 4703 Sfmt 4703 the seasonally-adjusted unemployment rate (lagged twelve months) and the Consumer Price Index from the Bureau of Labor Statistics, and the ‘‘wages and salaries’’ component of personal income from the National Income and Product Accounts from the Bureau of Economic Analysis. This model subsequently forecasts the expected annual change in average PUC from Calendar Year (CY) 2012 to CY 2013 for the voucher program on a national basis by incorporating comparable economic variables from the Administration’s economic assumptions. For reference, these economic assumptions are described in the FY 2014 Budget. The inflation factor for an individual geographic area is based on the change in the area’s Fair Market Rent (FMR) between FY 2012 and FY 2013. These changes in FMR are then scaled such that the voucher-weighted average of all individual area inflation factors is equal to the expected annual change in national PUC from FY 2012 to FY 2013, and also such that no area has a negative factor. HUD subsequently applies these calculated individual area inflation factors to eligible renewal funding for each PHA based on VMS leasing and cost data for the prior calendar year. For the CY 2013 PHA HCV allocation uses 0.41 percent as the annual change in PUC. This figure was calculated by using VMS data through December of 2012 and actual performance of economic indices through the December of 2012. III. The Use of Inflation Factors The inflation factors have been developed to account for relative differences in the PUC of vouchers so that HCV funds can be allocated among PHAs. HUD will continue to update the current model with available data in order to assess the expected annual change in PUC and intends to update the methodology for future funding estimates. HUD is also continuing to review and refine the methodology, especially for area differences in the factors, which will be described in future inflation factor notices. IV. Geographic Areas Inflation factors based on PUC forecasts are produced for all Class A CPI cities (CPI cities with a population of 1.5 million or more) and for the four 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 citysurvey, the inflation factor that is based E:\FR\FM\10JNN1.SGM 10JNN1 Federal Register / Vol. 78, No. 111 / Monday, June 10, 2013 / Notices 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 citysurvey, the CBSA uses the relevant regional CPI factor. Almost all nonmetropolitan counties use regional CPI factors. For areas assigned the Census Region CPI factor, both metropolitan and non-metropolitan areas receive the same factor. The tables showing the Renewal Funding Inflation Factors available electronically from the HUD data information page list the inflation factors for the four Census Regions first, followed by an alphabetical listing of each metropolitan area, beginning with Akron, OH, MSA. The inflation factors use the same OMB metropolitan area definitions, as revised by HUD, that are used in the FY 2013 FMRs. V. Area Definitions To make certain that they are referencing the correct inflation factors, PHAs should refer to the Area Definitions Table on the following Web page: https://www.huduser.org/portal/ datasets/rfif/FY2013/ FY2013_AreaDef.pdf. The Area Definitions Table lists areas in alphabetical order by state, and the associated Census Region is shown next to each state name. If the area where a unit is located is not separately listed, the inflation factor for the Census Region that includes that area is used. In the six New England states, the listings are for counties or parts of counties as defined by towns or cities. Any location in these states that are not specifically listed should use the Northeast Census Region inflation factor. Puerto Rico and the Virgin Islands use the South Region inflation factors. All areas in Hawaii use the Renewal Funding inflation factors listed next ‘‘Hawaii,’’ in Appendix A which is based on the CPI survey for the Honolulu metropolitan area. The Pacific Islands use the West Region Renewal Funding inflation factor. mstockstill on DSK4VPTVN1PROD with NOTICES VI. Environmental Impact This notice involves a statutorily required establishment of a rate or cost determination which does not constitute a development decision affecting the physical condition of specific project areas or building sites. Accordingly, under 24 CFR 50.19(c)(6), this notice is categorically excluded from environmental review under the National Environmental Policy Act of 1969 (42 U.S.C. 4321). VerDate Mar<15>2010 16:56 Jun 07, 2013 Jkt 229001 Dated: May 31, 2013. Jean Lin Pao, General Deputy Assistant Secretary for Policy Development and Research. [FR Doc. 2013–13555 Filed 6–7–13; 8:45 am] BILLING CODE 4210–67–P DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT [Docket No. FR–5699–N–02] Notice of Single Family Loan Sales (SFLS 2013–2) Office of the Assistant Secretary for Housing—Federal Housing Commissioner, HUD. ACTION: Notice of sales of mortgage loans. AGENCY: This notice announces HUD’s intention to competitively sell certain unsubsidized single family mortgage loans, in a sealed bid sale offering called SFLS 2013–2, without Federal Housing Administration (FHA) mortgage insurance. This notice also generally describes the bidding process for the sale and certain persons who are ineligible to bid. This is the second sale of Fiscal Year (FY) 2013 and the offerings will be held on June 26 and July 10, 2013. DATES: For this sale action, the Bidder’s Information Package (BIP) will be made available to qualified bidders on or about May 22, 2013. Bids for the 2013– 2 sale will be accepted on two Bid Dates and must be submitted on those dates, which are currently scheduled for June 26th and July 10th. (Bid Dates) HUD anticipates that award(s) will be made on or about June 27th, 2013 for the first offering and July 11th for the second (the Award Dates). ADDRESSES: To become a qualified bidder and receive the BIP, prospective bidders must complete, execute, and submit a Confidentiality Agreement and a Qualification Statement acceptable to HUD. Both documents are available via the HUD Web site at: https:// www.hud.gov/sfloansales or via: https:// www.DebtX.com. Please mail and fax executed documents to SEBA Professional Services: SEBA Professional Services, c/o The Debt Exchange, 133 Federal Street, 10th Floor, Boston, MA 02111, Attention: HUD SFLS Loan Sale Coordinator, Fax: 1–617–531–3499. FOR FURTHER INFORMATION CONTACT: John Lucey, Deputy Director, Asset Sales Office, Room 3136, Department of Housing and Urban Development, 451 Seventh Street SW., Washington, DC 20410–8000; telephone 202–708–2625, SUMMARY: PO 00000 Frm 00033 Fmt 4703 Sfmt 4703 34667 extension 3927. Hearing- or speechimpaired individuals may call 202–708– 4594 (TTY). These are not toll-free numbers. SUPPLEMENTARY INFORMATION: HUD announces its intention to sell in SFLS 2013–2 certain unsubsidized nonperforming mortgage loans (Mortgage Loans) secured by single family properties located throughout the United States. A listing of the Mortgage Loans is included in the due diligence materials made available to qualified bidders. The Mortgage Loans will be sold without FHA insurance and with servicing released. HUD will offer qualified bidders an opportunity to bid competitively on the Mortgage Loans. The Loans will be offered on two sale dates. On June 26th, the Department will offer national loan pools for bid. On July 10th, the Department will offer regionally-based pools, with additional purchaser requirements, that are called the Neighborhood Stabilization Outcome pools. The Bidding Process The BIP describes in detail the procedure for bidding in SFLS 2013–2. The BIP also includes a standardized non-negotiable Conveyance, Assignment and Assumption Agreement (CAA Agreement). Qualified bidders will be required to submit a deposit with their bid. Deposits are calculated based upon each qualified bidder’s aggregate bid price. HUD will evaluate the bids submitted and determine the successful bid, in terms of the best value to HUD, in its sole and absolute discretion. If a qualified bidder is successful, the qualified bidder’s deposit will be nonrefundable and will be applied toward the purchase price. Deposits will be returned to unsuccessful bidders. For the 2013–2 sale actions, settlements are expected to take place on or about August 8, 2013, and September 19, 2013. This notice provides some of the basic terms of sale. The CAA Agreement, which is included in the BIP, provides comprehensive contractual terms and conditions. To ensure a competitive bidding process, the terms of the bidding process and the CAA Agreement are not subject to negotiation. Due Diligence Review The BIP describes how qualified bidders may access the due diligence materials remotely via a high-speed Internet connection. Mortgage Loan Sale Policy HUD reserves the right to remove Mortgage Loans from SFLS 2013–2 at E:\FR\FM\10JNN1.SGM 10JNN1

Agencies

[Federal Register Volume 78, Number 111 (Monday, June 10, 2013)]
[Notices]
[Pages 34666-34667]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2013-13555]


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DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

[Docket No. FR-5718-N-01]


Section 8 Housing Assistance Payments Program--Fiscal Year (FY) 
2013 Inflation Factors for Public Housing Agency (PHA) Renewal Funding

AGENCY: Office of the Assistant Secretary for Policy Development and 
Research, HUD.

ACTION: Notice.

-----------------------------------------------------------------------

SUMMARY: The FY 2013 HUD Appropriations Act requires that HUD apply 
``an inflation factor as established by the Secretary, by notice 
published in the Federal Register'' to adjust FY 2013 renewal funding 
for the Tenant-based Rental Assistance Program or Housing Choice 
Voucher (HCV) Program of each PHA. For FY 2011 and FY 2010, renewal 
funding was based on annual adjustment factors (AAFs) and HUD published 
separate Renewal Funding AAFs for this purpose. These Renewal Funding 
AAFs, based only on Consumer Price Index (CPI) data for rents and 
utilities, were replaced for FY 2012 by inflation factors that 
incorporate additional economic indices to measure the expected change 
in the per unit cost (PUC) for the HCV program. The methodology for FY 
2013 remains unchanged from that used in FY 2012.

DATES: Effective Date: June 10, 2013.

FOR FURTHER INFORMATION CONTACT: Michael S. Dennis, Director, Housing 
Voucher Programs, Office of Public Housing and Voucher Programs, Office 
of Public and Indian Housing, telephone number 202-708-1380; or Peter 
B. Kahn, Director, Economic and Market Analysis Division, Office of 
Policy Development and Research, telephone number 202-402-2409, for 
technical information regarding the development of the schedules for 
specific areas or the methods used for calculating the inflation 
factors, Department of Housing and Urban Development, 451 7th Street 
SW., Washington, DC 20410. Hearing- or speech-impaired persons may 
contact the Federal Relay Service at 800-877-8339 (TTY). (Other than 
the ``800'' TTY number, the above-listed telephone numbers are not toll 
free.)

SUPPLEMENTARY INFORMATION: 

I. Background

    Tables showing Renewal Funding Inflation Factors will be available 
electronically from the HUD data information page at: https://www.huduser.org/portal/datasets/rfif/FY2013/FY2013_IF_Table.pdf.
    In prior years, the Department of Housing and Urban Development has 
been using Renewal Funding AAFs based on Consumer Price Index data 
published by the Bureau of Labor Statistics on ``rent of primary 
residence'' and ``fuels and utilities'' as the inflation factor to 
calculate the renewal funding for each PHA. During this period, HUD 
undertook several projects to better understand the drivers of the 
annual change in housing subsidy costs for the tenant-based voucher 
program. Division F, Title VIII, Consolidated and Further Continuing 
Appropriations Act, 2013 (Pub. L. 113-6, approved March 26, 2013) 
requires that the HUD Secretary, for the calendar year 2013 funding 
cycle, provide renewal funding for each public housing agency (PHA) 
based on validated voucher management system (VMS) leasing and cost 
data for the prior calendar year and by applying an inflation factor as 
established by the Secretary, by notice published in the Federal 
Register. This notice provides the FY 2013 inflation factors and 
describes the methodology for calculating them.

II. Methodology

    The Department has focused on measuring the change in average PUC 
as captured in HUD's administrative data in VMS. In order to predict 
the likely path of PUC over time, HUD has implemented a model that uses 
several economic indices that capture key components of the economic 
climate and assist in explaining the changes in PUC. These economic 
components are the seasonally-adjusted unemployment rate (lagged twelve 
months) and the Consumer Price Index from the Bureau of Labor 
Statistics, and the ``wages and salaries'' component of personal income 
from the National Income and Product Accounts from the Bureau of 
Economic Analysis. This model subsequently forecasts the expected 
annual change in average PUC from Calendar Year (CY) 2012 to CY 2013 
for the voucher program on a national basis by incorporating comparable 
economic variables from the Administration's economic assumptions. For 
reference, these economic assumptions are described in the FY 2014 
Budget.
    The inflation factor for an individual geographic area is based on 
the change in the area's Fair Market Rent (FMR) between FY 2012 and FY 
2013. These changes in FMR are then scaled such that the voucher-
weighted average of all individual area inflation factors is equal to 
the expected annual change in national PUC from FY 2012 to FY 2013, and 
also such that no area has a negative factor. HUD subsequently applies 
these calculated individual area inflation factors to eligible renewal 
funding for each PHA based on VMS leasing and cost data for the prior 
calendar year. For the CY 2013 PHA HCV allocation uses 0.41 percent as 
the annual change in PUC. This figure was calculated by using VMS data 
through December of 2012 and actual performance of economic indices 
through the December of 2012.

III. The Use of Inflation Factors

    The inflation factors have been developed to account for relative 
differences in the PUC of vouchers so that HCV funds can be allocated 
among PHAs. HUD will continue to update the current model with 
available data in order to assess the expected annual change in PUC and 
intends to update the methodology for future funding estimates. HUD is 
also continuing to review and refine the methodology, especially for 
area differences in the factors, which will be described in future 
inflation factor notices.

IV. Geographic Areas

    Inflation factors based on PUC forecasts are produced for all Class 
A CPI cities (CPI cities with a population of 1.5 million or more) and 
for the four 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 
inflation factor that is based

[[Page 34667]]

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. For areas assigned the Census Region CPI 
factor, both metropolitan and non-metropolitan areas receive the same 
factor.
    The tables showing the Renewal Funding Inflation Factors available 
electronically from the HUD data information page list the inflation 
factors for the four Census Regions first, followed by an alphabetical 
listing of each metropolitan area, beginning with Akron, OH, MSA. The 
inflation factors use the same OMB metropolitan area definitions, as 
revised by HUD, that are used in the FY 2013 FMRs.

V. Area Definitions

    To make certain that they are referencing the correct inflation 
factors, PHAs should refer to the Area Definitions Table on the 
following Web page: https://www.huduser.org/portal/datasets/rfif/FY2013/FY2013_AreaDef.pdf. The Area Definitions Table lists areas in 
alphabetical order by state, and the associated Census Region is shown 
next to each state name. If the area where a unit is located is not 
separately listed, the inflation factor for the Census Region that 
includes that area is used. In the six New England states, the listings 
are for counties or parts of counties as defined by towns or cities. 
Any location in these states that are not specifically listed should 
use the Northeast Census Region inflation factor.
    Puerto Rico and the Virgin Islands use the South Region inflation 
factors. All areas in Hawaii use the Renewal Funding inflation factors 
listed next ``Hawaii,'' in Appendix A which is based on the CPI survey 
for the Honolulu metropolitan area. The Pacific Islands use the West 
Region Renewal Funding inflation factor.

VI. Environmental Impact

    This notice involves a statutorily required establishment of a rate 
or cost determination which does not constitute a development decision 
affecting the physical condition of specific project areas or building 
sites. Accordingly, under 24 CFR 50.19(c)(6), this notice is 
categorically excluded from environmental review under the National 
Environmental Policy Act of 1969 (42 U.S.C. 4321).

    Dated: May 31, 2013.
Jean Lin Pao,
General Deputy Assistant Secretary for Policy Development and Research.
[FR Doc. 2013-13555 Filed 6-7-13; 8:45 am]
BILLING CODE 4210-67-P
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