Fair Market Rents for the Housing Choice Voucher Program, Moderate Rehabilitation Single Room Occupancy Program, and Other Programs Fiscal Year 2019, 44644-44651 [2018-19090]
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Federal Register / Vol. 83, No. 170 / Friday, August 31, 2018 / Notices
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1995. The purpose of this notice is to
allow an additional 30 days for public
comments.
DATES: The purpose of this notice is to
allow an additional 30 days for public
comments. Comments are encouraged
and will be accepted until October 1,
2018.
ADDRESSES: Written comments and/or
suggestions regarding the item(s)
contained in this notice, especially
regarding the estimated public burden
and associated response time, must be
directed to the OMB USCIS Desk Officer
via email at dhsdeskofficer@
omb.eop.gov. All submissions received
must include the agency name and the
OMB Control Number [1615–0016] in
the subject line.
You may wish to consider limiting the
amount of personal information that you
provide in any voluntary submission
you make. For additional information
please read the Privacy Act notice that
is available via the link in the footer of
https://www.regulations.gov.
FOR FURTHER INFORMATION CONTACT:
USCIS, Office of Policy and Strategy,
Regulatory Coordination Division,
Samantha Deshommes, Chief, 20
Massachusetts Avenue NW,
Washington, DC 20529–2140,
Telephone number (202) 272–8377
(This is not a toll-free number;
comments are not accepted via
telephone message.). Please note contact
information provided here is solely for
questions regarding this notice. It is not
for individual case status inquiries.
Applicants seeking information about
the status of their individual cases can
check Case Status Online, available at
the USCIS website at https://
www.uscis.gov, or call the USCIS
National Customer Service Center at
(800) 375–5283; TTY (800) 767–1833.
SUPPLEMENTARY INFORMATION:
Comments
The information collection notice was
previously published in the Federal
Register on May 14, 2018, at 83 FR
22286, allowing for a 60-day public
comment period. USCIS did receive one
comment in connection with the 60-day
notice.
You may access the information
collection instrument with instructions,
or additional information by visiting the
Federal eRulemaking Portal site at:
https://www.regulations.gov and enter
USCIS–2006–0070 in the search box.
Written comments and suggestions from
the public and affected agencies should
address one or more of the following
four points:
(1) Evaluate whether the proposed
collection of information is necessary
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for the proper performance of the
functions of the agency, including
whether the information will have
practical utility;
(2) Evaluate the accuracy of the
agency’s estimate of the burden of the
proposed collection of information,
including the validity of the
methodology and assumptions used;
(3) Enhance the quality, utility, and
clarity of the information to be
collected; and
(4) 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
request: Extension, Without Change, of
a Currently Approved Collection.
(2) Title of the form/collection:
Application for Relief under Former
Section 212(c) of the Immigration and
Nationality Act.
(3) Agency form number, if any, and
the applicable component of the DHS
sponsoring the collection: I–191; USCIS.
(4) Affected public who will be asked
or required to respond, as well as a brief
abstract: Primary: Individuals or
households. USCIS and EOIR use the
information on the form to properly
assess and determine whether the
applicant is eligible for a waiver under
former section 212(c) of INA.
(5) An estimate of the total number of
respondents and the amount of time
estimated for an average respondent to
respond: The estimated total number of
respondents for the information
collection I–191 is 240 and the
estimated hour burden per response is
1.5 hours.
(6) An estimate of the total public
burden (in hours) associated with the
collection: The total estimated annual
hour burden associated with this
collection is 360 hours.
(7) An estimate of the total public
burden (in cost) associated with the
collection: The estimated total annual
cost burden associated with this
collection of information is $30,300.
Dated: August 27, 2018.
Samantha L Deshommes,
Chief, Regulatory Coordination Division,
Office of Policy and Strategy, U.S. Citizenship
and Immigration Services, Department of
Homeland Security.
[FR Doc. 2018–18876 Filed 8–30–18; 8:45 am]
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DEPARTMENT OF HOUSING AND
URBAN DEVELOPMENT
[Docket No. FR–6125–N–01]
Fair Market Rents for the Housing
Choice Voucher Program, Moderate
Rehabilitation Single Room Occupancy
Program, and Other Programs Fiscal
Year 2019
Office of the Assistant
Secretary for Policy Development and
Research, HUD.
ACTION: Notice of Fiscal Year (FY) 2019
Fair Market Rents (FMRs) and response
to public comments on the use of FMR
surveys in the calculation of renewal
funding inflation factors.
AGENCY:
Section 8(c)(1) of the United
States Housing Act of 1937 (USHA), as
amended by the Housing Opportunity
Through Modernization Act of 2016
(HOTMA), requires the Secretary to
publish FMRs not less than annually,
adjusted to be effective on October 1 of
each year. This notice describes the
methods used to calculate the FY 2019
FMRs and enumerates the procedures
for Public Housing Agencies (PHAs) and
other interested parties to request
reevaluations of their FMRs, as required
by HOTMA. To help inform PHAs’
decisions concerning reevaluation
requests, this notice briefly addresses
HUD’s May 30, 2018 notice regarding
the use of FMR surveys in the
calculation of Renewal Funding
Inflation Factors.
DATES:
Comment Due Date: October 1, 2018.
Effective Date: The Fair Market Rents
are effective October 1, 2018 unless
HUD receives a request for reevaluation
of specific area FMRs as described
below.
SUMMARY:
HUD invites interested
persons to submit comments regarding
the FMRs and to request reevaluation of
the FY 2019 FMRs to the Regulations
Division, Office of General Counsel,
Department of Housing and Urban
Development, 451 Seventh Street SW,
Room 10276, Washington, DC 20410–
0001. Communications must refer to the
above docket number and title and
should contain the information
specified in the ‘‘Request for Comments/
Request for Reevaluation’’ section.
There are two methods for submitting
public comments.
1. Submission of Comments by Mail.
Comments or requests for reevaluation
may be submitted by mail to the
Regulations Division, Office of General
Counsel, Department of Housing and
Urban Development, 451 7th Street SW,
Room 10276, Washington, DC 20410–
ADDRESSES:
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0500. Often, submission of comments by
mail results in delayed delivery. To
ensure timely receipt of comments or
reevaluation requests, HUD
recommends that comments or requests
submitted by mail be submitted at least
2 weeks in advance of the deadline.
HUD will make all comments or
reevaluation requests received by mail
available to the public at https://
www.regulations.gov.
2. Electronic Submission of
Comments. Interested persons may
submit comments or reevaluation
requests electronically through the
Federal eRulemaking Portal at https://
www.regulations.gov. HUD strongly
encourages commenters to submit
comments or reevaluation requests
electronically. Electronic submission of
comments or reevaluation requests
allows the author maximum time to
prepare and submit a comment or
reevaluation request, ensures timely
receipt by HUD, and enables HUD to
make comments immediately available
to the public. Comments or reevaluation
requests submitted electronically
through the https://www.regulations.gov
website can be viewed by other
submitters and interested members of
the public. Commenters or reevaluation
requestors should follow instructions
provided on that site to submit
comments or reevaluation requests
electronically.
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Note: To receive consideration as public
comments or reevaluation requests,
comments or requests must be submitted
through one of the two methods specified
above. Again, all submissions must refer to
the docket number and title of the notice.
No Facsimile Comments or
Reevaluation Requests. Facsimile (FAX)
comments or requests for FMR
reevaluation are not acceptable.
Public Inspection of Public Comments
and Reevaluation Requests. All properly
submitted comments and reevaluation
requests and communications regarding
this notice submitted to HUD will be
available for public inspection and
copying between 8 a.m. and 5 p.m.
weekdays at the above address. Due to
security measures at the HUD
Headquarters building, an advance
appointment to review the public
comments and reevaluation requests
must be scheduled by calling the
Regulations Division at 202–708–3055
(this is not a toll-free number).
Individuals with speech or hearing
impairments may access this number
through TTY by calling the Federal
Relay Service at 800–877–8339 (toll-free
number). Copies of all comments and
reevaluation requests submitted are
available for inspection and
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downloading at https://
www.regulations.gov.
Electronic Data Availability. This
Federal Register notice will be available
electronically from the HUD User page
at https://www.huduser.gov/portal/
datasets/fmr.html. Federal Register
notices also are available electronically
at https://www.federalregister.gov/ the
U.S. Government Printing Office
website. Complete documentation of the
methods and data used to compute each
area’s FY 2019 FMRs is available at
https://www.huduser.gov/portal/
datasets/fmr.html#2019_query. FY 2019
FMRs are available in a variety of
electronic formats at https://
www.huduser.gov/portal/datasets/
fmr.html. FMRs may be accessed in PDF
as well as in Microsoft Excel. Small
Area FMRs for all metropolitan FMR
areas are available in Microsoft Excel
format at: https://www.huduser.gov/
portal/datasets/fmr/smallarea/
index.html.
FOR FURTHER INFORMATION CONTACT: For
technical information on the
methodology used to develop FMRs or
a listing of all FMRs, please call the
HUD USER information line at 800–
245–2691 or access the information on
the HUD USER website at https://
www.huduser.gov/portal/datasets/
fmr.html. FMRs are listed at the 40th or
50th percentile in Schedule B. For
informational purposes, 40th percentile
rents for the areas with 50th percentile
FMRs will be provided in the HUD FY
2019 FMR documentation system at
https://www.huduser.gov/portal/
datasets/fmr.html#2019_query and 50th
percentile rents for all FMR areas will
be published at https://
www.huduser.gov/portal/datasets/
50per.html.
Questions related to use of FMRs or
voucher payment standards should be
directed to the respective local HUD
program staff. Questions on how to
conduct FMR surveys may be addressed
to Marie L. Lihn or Peter B. Kahn of the
Economic and Market Analysis
Division, Office of Economic Affairs,
Office of Policy Development and
Research at HUD headquarters, 451 7th
Street SW, Room 8208, Washington, DC
20410; telephone number 202–402–2409
(this is not a toll-free number), or via
email at emad-hq@hud.gov. Persons
with hearing or speech impairments
may access HUD numbers through TTY
by calling the Federal Relay Service at
800–877–8339 (toll-free number).
SUPPLEMENTARY INFORMATION:
I. Background
Section 8 of the USHA (42 U.S.C.
1437f) authorizes housing assistance to
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44645
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 Housing Choice
Voucher (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.
HUD also uses the FMRs to determine
initial renewal rents for some expiring
project-based Section 8 contracts, initial
rents for housing assistance payment
contracts in the Moderate Rehabilitation
Single Room Occupancy program, rent
ceilings for rental units in both the
HOME Investment Partnerships program
and the Emergency Solution Grants
program, calculation of maximum
award amounts for Continuum of Care
recipients and the maximum amount of
rent a recipient may pay for property
leased with Continuum of Care funds,
and calculation of flat rents in Public
Housing units. 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 and is typically set at
the 40th percentile of the distribution of
gross rents. HUD’s FMR calculations
represent HUD’s best effort to estimate
the 40th percentile gross rent paid by
recent movers into standard quality
units in each FMR area. In addition, all
rents subsidized under the HCV
program must meet reasonable rent
standards.
As of October 2, 2000, HUD required
FMRs to be set at the 50th percentile for
areas where HUD determined higher
FMRs were needed to help families
assisted under certain HUD programs
find and lease decent and affordable
housing (65 FR 58870). On November
16, 2016, HUD published a Final Rule
entitled ‘‘Establishing a More Effective
Fair Market Rent System; Using Small
Area Fair Market Rents in the Housing
Choice Voucher Program Instead of the
Current 50th Percentile FMRs’’ (Small
Area FMR final rule) (81 FR 80567),
with an effective date of January 17,
2017. The Small Area FMR final rule
eliminates the 50th percentile FMR
provisions in the FMR regulations (24
CFR 888.113) 1 and provides that areas
1 Separately from the Small Area FMR
regulations, HUD also calculates and posts 50th
percentile rent estimates for the purposes of
Success Rate Payment Standards, as defined at 24
CFR 982.503(e) (estimates available at: https://
www.huduser.gov/portal/datasets/50per.html),
which policy was not changed by the Small Area
FMR rule.
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currently designated as 50th percentile
areas remain 50th percentile areas until
their current 3-year eligibility period
expires. At the end of the 3-year
eligibility period, these areas revert to
40th percentile FMR status. If PHAs in
areas converting from 50th percentile
FMRs to 40th percentile FMRs meet the
deconcentration criteria specified in 24
CFR 982.503(f), available at: https://
www.gpo.gov/fdsys/pkg/CFR-2016title24-vol4/pdf/CFR-2016-title24-vol4sec982-503.pdf, they may petition HUD
to maintain payment standards based on
50th percentile rents on that basis.
The following areas completed their 3
years of 50th percentile eligibility in FY
2018 and will revert to 40th percentile
FMR status in FY 2019:
Register notice. After notification, the
FMRs ‘‘shall become effective no earlier
than 30 days after the date of such
publication,’’ and HUD must provide a
procedure for the public to comment
and request a reevaluation of the FMRs
in a jurisdiction before the FMRs
become effective. Consistent with the
statute, HUD is issuing this notice to
notify the public that FY 2019 FMRs are
available at https://www.huduser.gov/
portal/datasets/fmr.html and will
become effective on October 1, 2018.
This notice also provides procedures for
FMR reevaluation requests.
San Diego-Carlsbad-San Marcos,
CA MSA ....................................
A. Base Year Rents
For FY 2019 FMRs, HUD uses the U.S.
Census Bureau’s 5-year ACS data
collected between 2012 and 2016
(released in December 2017) as the base
rents for the FMR calculations. In order
to improve the statistical reliability of
the ACS data used in the FMR
calculations, HUD pairs a ‘‘margin of
error’’ test 2 with an additional test
based on the number of survey
observations supporting the estimate,
beginning with the FY 2018 FMRs and
continuing with the FY 2019 FMRs. The
Census Bureau does not provide HUD
with an exact count of the number of
observations supporting the ACS
estimate; rather, the Census Bureau
provides HUD with categories of the
number of survey responses underlying
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III. FMR Methodology
This section provides a brief overview
of how HUD computes the FY 2019
FMRs. HUD is making no changes to the
FY 2018 50TH-PERCENTILE FMR
estimation methodology for FMRs as
AREAS REVERTING TO 40TH PER- used by HUD for the FY 2018 FMRs.
The only difference is the use of more
CENTILE FMRS IN FY 2019
recent data. For complete information
Baltimore-ColumbiaPhiladelphia-Camden- on how HUD determines FMR areas,
Towson, MD MSA.
Wilmington, PA-NJ- and on how HUD derives each area’s
DE-MD.
FMRs, see the online documentation at
Washington, DC-VAWest Palm Beachhttps://www.huduser.gov/portal/
MD HUD Metro
Boca Raton, FL
datasets/fmr.html#2019_query.
FMR Area.
HUD Metro FMR
In conjunction with the use of 2016
Area.
American Community Survey (ACS)
data, HUD has implemented the
The following is a list of FMR areas
following geography changes: Effective
that retain 50th percentile FMRs for FY
May 1, 2016, Garfield County,
2019, along with the year that they will
Oklahoma became the metropolitan area
revert to 40th percentile status:
of Enid, OK metropolitan statistical area
(MSA). In addition, HUD changed from
FY 2019 50TH-PERCENTILE FMR
AREAS WITH YEAR OF REVERSION two separate county-based HUD Metro
FMR Areas (HMFA) (Kalawao County,
TO 40TH PERCENTILE FMRS
HI HMFA and Maui County, HI HMFA)
to a two county MSA, the KahuluiBergen-Passaic, NJ HUD Metro
Wailuku-Lahaina, HI MSA due to
FMR Area ..................................
2020
extremely limited data available for
Spokane, WA HUD Metro FMR
Area ...........................................
2020 Kalawao County, HI.
2020
II. Procedures for the Development of
FMRs
Section 8(c)(1) of the USHA, as
amended by the Housing Opportunity
Through Modernization Act of 2016
(HOTMA) (Pub. L. 114–201, approved
July 29, 2016), requires the Secretary of
HUD to publish FMRs not less than
annually. Section 8(c)(1)(A) states that
each FMR ‘‘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 . . .’’ Section
8(c)(1)(B) requires that HUD publish,
not less than annually, new FMRs on
the World Wide Web or in any other
manner specified by the Secretary, and
that HUD must also notify the public of
when it publishes FMRs by Federal
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2 HUD’s margin of error test requires that the
margin of error of the ACS estimate is less than half
the size of the estimate itself.
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the estimate, including whether the
estimate is based on more than 100
observations. Using these categories,
HUD requires that, in addition to the
‘‘margin of error’’ test, ACS rent
estimates must be based on at least 100
observations in order to be used as base
rents.
For areas in which the 5-year ACS
data for two-bedroom, standard quality
gross rents do not pass the statistical
reliability tests (i.e., have a margin of
error ratio greater than 50 percent or
fewer than 100 observations), HUD will
use an average of the base rents over the
three most recent years (provided that
there is data available for at least two of
these years),3 or if such data is not
available, using the two-bedroom rent
data within the next largest geographic
area, which for a non-metropolitan area
would be the state non-metro area rent
data.
Since FY 2012, HUD has updated base
rents each year based on new 5-year
data, for which HUD used 2005–2009
ACS data. HUD is also updating base
rents for Puerto Rico FMRs using data
collected through the Puerto Rico
Community Surveys (PRCS) between
2012 and 2016. HUD first updated the
Puerto Rico base rents in FY 2014 based
on 2007–2011 PRCS data collected
through the ACS program.
HUD historically based FMRs on gross
rents for recent movers (those who have
moved into their current residence in
the last 24 months) measured directly
from decennial census long form survey
responses. However, due to the way the
5-year ACS data are constructed, HUD
developed a new method for calculating
recent-mover FMRs in FY 2012, which
HUD continues to use in FY 2019: HUD
assigns all areas a base rent, which is
the two-bedroom standard quality 5year gross rent estimate from the ACS;
then, because HUD’s regulations
mandate that FMRs must be published
as recent mover gross rents, HUD
applies a recent mover factor to the base
rents assigned from the 5-year ACS
data.4 The calculation of the recent
mover factor is described below.
3 For FY 2019, the three years of ACS data in
question are 2014, 2015 and 2016. The 2014 data
are adjusted to be denominated in 2016 dollars
using the growth in CPI-based gross rents measured
between 2014 and 2016. Similarly, the 2015 gross
rent data is adjusted to 2016 denominated dollars
using the growth in CPI-based gross rents measured
between 2015 and 2016.
4 HUD’s regulations incorporate recent mover
data into FMR calculations because the gross rents
of those who most recently moved into their units
likely depicts the most current market conditions
observable through the ACS. Rents paid by renters
renewing existing leases may not reflect the most
current market conditions, in part because these
renters may have clauses within their leases that
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B. Recent Mover Factor
Following the assignment of the
standard quality two-bedroom rent
described above, HUD applies a recent
mover factor to these rents. HUD
calculates the recent mover factor as the
change between the 5-year 2012–2016
standard quality two-bedroom gross rent
and the 1-year 2016 recent mover gross
rent for the recent mover factor area.
HUD does not allow recent mover
factors to lower the standard quality
base rent; therefore, if the 5-year
standard quality rent is larger than the
comparable 1-year recent mover rent,
the recent mover factor is set to 1.
The calculation of the recent mover
factor for FY 2019 continues with the
modifications first applied to the FY
2018 FMRs. Similar to the statistical
reliability requirements for base rents,
for a recent mover gross rent estimate to
be considered statistically reliable, the
estimate must have a margin of error
ratio that is less than 50 percent, and the
estimate must be based on 100 or more
observations.
When an FMR area does not have
statistically reliable two-bedroom recent
mover data, the ‘‘all-bedroom’’ 5 1-year
recent mover ACS data for the FMR area
is tested for statistical reliability. An
‘‘all-bedroom’’ recent mover factor from
the FMR area will be used, if
statistically reliable, before substituting
a two-bedroom recent mover factor from
the next larger geography. Incorporating
‘‘all-bedroom’’ rents into the recent
mover factor calculation when
statistically reliable two-bedroom data is
not available preserves the use of local
information to the greatest extent
possible.
However, where statistically reliable
‘‘all-bedroom’’ data is not available,
HUD will continue to base FMR areas’
recent mover factors on larger
geographic areas, following the same
procedures used historically: HUD tests
data from differently sized geographic
areas from small to large, and bases the
recent mover factor on the first
statistically reliable recent mover rent
estimate in the geographic hierarchy
listed below.
• For metropolitan areas that are
subareas of larger metropolitan areas,
the order is the FMR area, metropolitan
area, aggregated metropolitan parts of
the state, and state.
• For metropolitan areas that are not
divided, the order is the FMR area,
predetermine the annual increases in rents paid
(i.e., rent escalator clauses).
5 ‘‘All-bedroom’’ refers to estimates aggregated
together regardless of the number of bedrooms in
the dwelling unit.
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aggregated metropolitan parts of the
state, and the state.
• In non-metropolitan areas, the order
is the FMR area, aggregated nonmetropolitan parts of the state, and the
state.
The process for calculating each area’s
recent mover factor is detailed in the FY
2019 FMR documentation system
available at: https://www.huduser.gov/
portal/datasets/fmr.html#2019_query.
Applying the recent mover factor to the
standard quality base rent produces an
‘‘as of’’ 2016 recent mover two-bedroom
gross rent for the FMR area.
C. Other Rent Survey Data
HUD calculated base rents for the
insular areas using the 2010 decennial
census of American Samoa, Guam, the
Northern Mariana Islands, and the
Virgin Islands beginning with the FY
2016 FMRs.6 This 2010 base year data
is updated through 2016 for the FY 2019
FMRs using national ACS data.
HUD does not use ACS data to
establish the base rent or recent mover
factor for 10 areas where the FY 2018
FMR was adjusted based on the
following survey data:
• Survey data from 2016 is used to
adjust the FMR for Portland, ME.
• Survey data from 2017 is used to
adjust the FMRs for Santa Rosa, CA;
Seattle-Bellevue, WA HMFA; Hood
River County, OR; Wasco County, OR;
Hawaii County, HI; Jonesboro, AR
HMFA; Urban Honolulu, HI MSA; and
Santa Maria-Santa Barbara, CA MSA.
• Survey data from 2018 is used to
adjust the FMR for Santa CruzWatsonville, CA MSA.
For larger metropolitan areas that
have valid ACS one-year recent mover
data, survey data may not be any older
than the midpoint of the calendar year
for the ACS one-year data. Since the
ACS one-year data used for the FY 2019
FMRs is from 2016, larger areas may not
use survey data collected before June 30,
2016, for the FY 2019 FMRs. Smaller
areas without 1-year ACS data, may
continue to use local survey data until
the mid-point of the 5-year ACS data is
more recent than the local survey.7
6 The ACS is not conducted in the Pacific Islands
(Guam, Northern Marianas and American Samoa) or
the US Virgin Islands. As part of the 2010 Decennial
Census, the Census Bureau conducted ‘‘long-form’’
sample surveys for these areas. The results gathered
by this long form survey have been incorporated
into the FY 2019 FMRs.
7 The 2013–2017 5-Year ACS data and the 2017
1-Year ACS data will be used to calculate the FY
2020 FMRs. We did discontinue the use of survey
in Kauai and Maui counties in HI and in VallejoFairfield, CA even though these surveys did not
meet the age requirements because the data
provided did not meet our current tighter statistical
standards enacted for the FY 2018 FMRs. In all
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D. Updates From 2016 to 2017 and
Forecast to FY 2019
HUD updates the ACS-based ‘‘as of’’
2016 rent through the end of 2017 using
the annual change in gross rents
measured through the Consumer Price
Index (CPI) from 2016 to 2017 (CPI
update factor). As in previous years,
HUD uses local CPI data coupled with
Consumer Expenditure Survey data for
FMR areas with at least 75 percent of
their population within Class A
metropolitan areas covered by local CPI
data. In FMR areas that do not meet this
criterion, including Class B and C size
metropolitan areas and nonmetropolitan areas, HUD uses CPI data
aggregated at the Census region level.
Additionally, HUD is using CPI data
collected locally in Puerto Rico as the
basis for CPI adjustments from 2016 to
2017 for all Puerto Rico FMR areas.
Following the application of the
appropriate CPI update factor, HUD
trends the gross rent estimate from 2017
to FY 2019 using a national forecast of
expected growth in gross rents. This
forecast produces ‘‘as of’’ FY 2019
FMRs.
E. Bedroom Rent Adjustments
HUD updates the bedroom ratios used
in the calculation of FMRs annually.
The bedroom ratios which HUD used in
the calculation of FY 2019 FMRs have
been updated using average data from
three 5-year ACS data series (2010–
2014, 2011–2015, and 2012–2016). The
bedroom ratio methodology used in this
update is unchanged from previous
calculations using 2000 Census data.
HUD only uses estimates with a margin
of error ratio of less than 50 percent. If
an area does not have reliable estimates
in at least two of the previous three ACS
releases, bedroom ratios for the area’s
larger parent geography are used.
HUD uses two-bedroom units for its
primary calculation of FMR estimates.
This is generally the most common size
of rental unit and, therefore, the most
reliable to survey and analyze. After
estimating two-bedroom FMRs, HUD
calculates bedroom ratios for each FMR
area which relate the prices of smaller
and larger units to the cost of twobedroom units. To prevent illogical
results in particular FMR areas, HUD
establishes bedroom interval ranges
which set upper and lower limits for
bedroom ratios nationwide, based on an
analysis of the range of such intervals
for all areas with large enough samples
to permit accurate bedroom ratio
determinations.
cases the FMRs for FY 2019 would have been lower
than for FY 2018 and in some cases, much lower.
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In the calculation of FY 2019 FMR
estimates, HUD set the bedroom interval
ranges as follows: Efficiency FMRs are
constrained to fall between 0.64 and
0.85 of the two-bedroom FMR; onebedroom FMRs must be between 0.76
and 0.87 of the two-bedroom FMR;
three-bedroom FMRs (prior to the
adjustments described below) must be
between 1.15 and 1.33 of the twobedroom FMR; and four-bedroom FMRs
(again, prior to adjustment) must be
between 1.26 and 1.63 of the twobedroom FMR. Given that these interval
ranges partially overlap across unit
bedroom counts, HUD further adjusts
bedroom ratios for a given FMR area, if
necessary, to ensure that higher
bedroom-count units have higher rents
than lower bedroom-count units within
that area. The bedroom ratios for Puerto
Rico follow these constraints.
HUD also further adjusts the rents for
three-bedroom and larger units to reflect
HUD’s policy to set higher rents for
these units.8 This adjustment is
intended to increase the likelihood that
the largest families, who have the most
difficulty in leasing units, will be
successful in finding eligible program
units. The adjustment adds 8.7 percent
to the unadjusted three-bedroom FMR
estimates and adds 7.7 percent to the
unadjusted four-bedroom FMR
estimates.
HUD derives FMRs for units with
more than four bedrooms by adding 15
percent to the four-bedroom FMR for
each extra bedroom. For example, the
FMR for a five-bedroom unit is 1.15
times the four-bedroom FMR, and the
FMR for a six-bedroom unit is 1.30
times the four-bedroom FMR. Similarly,
HUD derives FMRs for single-room
occupancy units by subtracting 25
percent from the zero-bedroom FMR
(i.e., they are set at 0.75 times the zerobedroom (efficiency) FMR).9
F. Limit on FMR Decreases
Within the Small Area FMR final rule
published on November 16, 2016, HUD
amended 24 CFR 888.113 to include a
limit on the amount that FMRs may
annually decrease. The current year’s
FMRs resulting from the application of
the bedroom ratios, as discussed in
section (E) above, may be no less than
90 percent of the prior year’s FMRs for
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8 As
mentioned above, HUD applies the interval
ranges for the three-bedroom and four-bedroom
FMR ratios prior to making these adjustments. In
other words, the adjusted three- and four-bedroom
FMRs can exceed the interval ranges, but the
unadjusted FMRs cannot.
9 As established in the interim rules
implementing the provisions of the Quality Housing
and Work Responsibility Act of 1998 (Title V of the
FY 1999 HUD Appropriations Act; Pub. L. 105–
276). In 24 CFR 982.604.
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units with the same number of
bedrooms. Accordingly, if the current
year’s FMRs are less than 90 percent of
the prior year’s FMRs as calculated by
the above methodology, HUD sets the
current year’s FMRs equal to 90 percent
of the prior year’s FMRs. For areas
where use of Small Area FMRs in the
administration of their voucher
programs is required, the FY 2019 Small
Area FMRs may be no less than 90
percent of the FY 2018 Small Area
FMRs. For all other metropolitan areas,
for which Small Area FMRs are
calculated so that they may be used for
other allowable purposes if desired (e.g.,
exception payment standards, public
housing flat rents), the FY 2019 Small
Area FMRs may be no less than 90
percent of the greater of the FY 2018
metropolitan area-wide FMRs or the
applicable FY 2018 Small Area FMR.
G. Other Limits on FMRs
All FMRs are subject to a state or
national minimum. HUD calculates a
population-weighted median twobedroom 40th percentile rent across all
non-metropolitan portions of each state,
which, for the purposes of FMRs, is the
state minimum rent. State-minimum
rents for each FMR area are available in
the FY 2019 FMR Documentation
System, available at https://
www.huduser.gov/portal/datasets/
fmr.html#2019_query. HUD also
calculates the population-weighted
median two-bedroom 40th percentile
rent across all non-metropolitan
portions of the country, which, for the
purposes of FMRs, is the national
minimum rent. For FY 2019, the
national minimum rent is $700. The
applicable minimum rent for a
particular area is the lower of the state
or national minimum. Each area’s twobedroom FMR must be no less than the
applicable minimum rent.
As in prior years, Small Area FMRs
are subject to a maximum limit. HUD
limits each two-bedroom Small Area
FMR to be no more than 150 percent of
the two-bedroom FMR for the
metropolitan area where the ZIP code is
located.
IV. Manufactured Home Space Surveys
HOTMA changed the manner in
which vouchers are used to subsidize
manufactured home units. Please see
HUD’s Notice from January 18, 2017 (82
FR 5458) for more detailed information
concerning the use of vouchers for
manufactured home units. Due to the
nature of these changes, HUD will no
longer be publishing exception rents for
Manufactured Home Space pad rents.
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V. Small Area FMRs
PHAs operating the Housing Choice
Voucher (HCV) program in the 24
metropolitan areas identified in the
November 16, 2016 Federal Register
notice ‘‘Small Area Fair Market Rents in
Housing Choice Voucher Program
Values for Selection Criteria and
Metropolitan Areas Subject to Small
Area Fair Market Rents’’ (81 FR 80678)
are required to use Small Area FMRs
unless the PHA has received a
temporary exemption from such use;
HUD has suspended the Small Area
FMR designation for the metropolitan
area under 24 CFR 888.113(c)(4); or the
PHA is a Moving to Work PHA with an
approved alternative payment standard
policy. For more information on the
process of obtaining a temporary
exemption or area-wide suspension,
please see PIH Notice 2018–01:
Guidance on Recent Changes in Fair
Market Rent (FMR), Payment Standard,
and Rent Reasonableness Requirements
in the Housing Choice Voucher
Program, item (9) beginning on page 13,
available at: https://www.hud.gov/sites/
dfiles/PIH/documents/PIH-2018-01.pdf.
Small Area FMRs for all metropolitan
areas are listed in the Schedule B
addendum. Other metropolitan PHAs
interested in using Small Area FMRs in
the operation of their Housing Choice
Voucher program must contact their
local HUD field office to request
approval from HUD.
In the FY 2018 FMR Federal Register
notice (82 FR 41637), HUD announced
changes in the way Small Area FMRs
are calculated and continues this change
for the FY 2019 Small Area FMRs. HUD
calculates Small Area FMRs directly
from the standard quality gross rents
provided to HUD by the Census Bureau
for ZIP Code Tabulation Areas (ZCTAs),
when such data is statistically reliable,
instead of using the current rent ratio
calculation. The ZCTA two-bedroom
equivalent 40th percentile gross rent is
analogous to the standard quality base
rents set for metropolitan areas and nonmetropolitan counties. For each ZCTA
with statistically reliable gross rent
estimates, using the expanded test of
statistical reliability first used in FY
2018 (i.e., estimates with margins of
error ratios below 50 percent and based
on at least 100 observations), HUD will
calculate a two-bedroom equivalent
40th percentile gross rent using the first
statistically reliable gross rent
distribution data from the following
data sets (in this order): Two-bedroom
gross rents, one-bedroom gross rents,
and three-bedroom gross rents. If either
the one-bedroom or three-bedroom gross
rent data is used because the two-
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bedroom gross rent data is not
statistically reliable, the one-bedroom or
three-bedroom 40th percentile gross rent
will be converted to a two-bedroom
equivalent rent using the bedroom ratios
for the ZCTA’s parent metropolitan area.
To increase stability to these Small Area
FMR estimates, HUD averages the latest
three years of gross rent estimates.10
For ZCTAs without usable gross rent
data by bedroom size, HUD will
continue to calculate Small Area FMRs
using the rent ratio method similar to
that which HUD has used in past Small
Area FMR calculations. To calculate
Small Area FMRs using a rent ratio,
HUD divides the median gross rent
across all bedrooms for the small area (a
ZIP code) by the similar median gross
rent for the metropolitan area of the ZIP
code. 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. HUD multiplies this rent
ratio by the current two-bedroom rent
for the metropolitan area containing the
small area to generate the current year
two-bedroom rent for the small area.
HUD continues to use a rolling
average of ACS data in calculating the
Small Area FMR rent ratios. HUD
believes coupling the most current data
with previous year’s data minimizes
excessive year-to-year variability in
Small Area FMR rent ratios due to
sampling variance. Therefore, for FY
2019 Small Area FMRs, HUD has
updated the rent ratios to use an average
of the rent ratios calculated from the
2010–2014, 2011–2015, and 2012–2016
5-year ACS estimates.
VI. Request for Public Comments and
FMR Reevaluations
Although HUD has not changed the
FMR estimation method for FY 2019,
HUD will continue to accept public
comments on the methods HUD uses to
calculate FY 2019 FMRs, including
Small Area FMRs, and the FMR levels
for specific areas. Due to its current
funding levels, HUD no longer has
sufficient resources to conduct local
surveys of rents to address comments
filed regarding the FMR levels for
specific areas. PHAs may continue to
fund such surveys independently, as
specified below, using administrative
fees if they so choose. HUD continually
strives to calculate FMRs that meet the
statutory requirement of using ‘‘the most
10 For example, for FY 2019 Small Area FMRs,
HUD averages the gross rents from 2014, 2015 and
2016 5-Year ACS estimates. The 2014 and 2015
gross rent estimates would be adjusted to 2016
dollars using the metropolitan area’s gross rent CPI
adjustment factors.
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recent available data’’ while also serving
as an effective program parameter.
PHAs or other interested parties
interested in requesting HUD
reevaluation of their area’s FY 2019
FMRs, as provided for under section
8(c)(1)(B) of USHA, must follow the
following procedures:
1. By the end of the comment period,
such reevaluation requests must be
submitted publicly through
www.regulations.gov or directly to HUD
as described above. The area’s PHA or,
in multijurisdictional areas, PHA(s)
representing at least half of the voucher
tenants in the FMR area, must agree that
the reevaluation is necessary.
2. In order for a reevaluation to occur,
the requestor(s) must supply HUD with
data more recent than the 2016
American Community Survey data used
in the calculation of the FY 2019 FMRs.
HUD requires data on gross rents paid
in the FMR area for standard quality
rental housing units. The data delivered
must be sufficient for HUD to calculate
a 40th and 50th percentile two-bedroom
rent. Should this type of data not be
available, requestors may gather this
information using the survey guidance
available at https://www.huduser.gov/
portal/datasets/fmr/NoteRevised
AreaSurveyProcedures.pdf and https://
www.huduser.gov/portal/datasets/fmr/
PrinciplesforPHA-ConductedAreaRent
Surveys.pdf.
3. On or about October 2, HUD will
post a list, at https://www.huduser.gov/
portal/datasets/fmr.html of the areas
requesting reevaluations and where FY
2018 FMRs remain in effect.
4. Data for reevaluations must be
supplied to HUD no later than Friday,
January 11, 2019. On Monday January
14, 2018, HUD will post at https://
www.huduser.gov/portal/datasets/
fmr.html a listing of the areas failing to
deliver data and making the FY 2019
FMRs effective in these areas.
5. HUD will use the data delivered by
January 11, 2019, to reevaluate the
FMRs and following the reevaluation,
will post revised FMRs with an
accompanying Federal Register notice
stating the revised FMRs are available,
which will include HUD responses to
comments filed during the comment
period.
6. Any data supporting a change in
FMRs supplied after January 11, 2019,
will be incorporated into FY 2020
FMRs.
7. PHAs operating in areas where the
calculated FMR is lower than the
published FMR (i.e., those areas where
HUD has limited the decrease in the
annual change in the FMR to 10
percent) may request payment standards
below the basic range (24 CFR
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44649
982.503(d)) and reference the
‘‘unfloored’’ rents (i.e., the unfinalized
FMRs calculated by HUD prior to
application of the 10-percent-decrease
limit) depicted in the FY 2019 FMR
Documentation System available at:
https://www.huduser.gov/portal/
datasets/fmr.html#2019_query.
Questions on how to conduct FMR
surveys may be addressed to Marie L.
Lihn or Peter B. Kahn of the Economic
and Market Analysis Division, Office of
Economic Affairs, Office of Policy
Development and Research at HUD
headquarters, 451 7th Street SW, Room
8208, Washington, DC 20410; telephone
number 202–402–2409 (this is not a tollfree number), or via email at emad-hq@
hud.gov.
For small metropolitan areas without
one-year ACS data and nonmetropolitan counties, HUD has
developed a method using mail surveys
that is discussed on the FMR web page:
https://www.huduser.gov/portal/
datasets/fmr.html#survey_info. This
method allows for the collection of as
few as 100 one-bedroom, two-bedroom
and three-bedroom recent mover
(tenants that moved in last 24 months)
units.
While HUD has not developed a
specific method for mail surveys in
areas with 1-year ACS data or in areas
not covered by ACS data, HUD will
apply the standard established for
Random-Digit Dialing (RDD) telephone
rent surveys. HUD will evaluate these
survey results to determine whether to
establish a new FMR statistically
different from the current FMR, which
means that the survey confidence
interval must not include the FMR. The
survey should collect results based on
200 one-bedroom and two-bedroom
eligible recent mover units to provide a
small enough confidence interval for
significant results in large market mail
surveys. Areas with statistically reliable
1-year ACS data are not considered to be
good candidates for local surveys due to
the size and completeness of the ACS
process.
Other survey methods are acceptable
in providing data to support
reevaluation requests if the survey
method can provide statistically
reliable, unbiased estimates of the gross
rent of the entire FMR area. In general,
recommendations for FMR changes and
supporting data must reflect the rent
levels that exist within the entire FMR
area and should be statistically reliable.
PHAs in non-metropolitan areas may,
in certain circumstances, conduct
surveys of groups of counties. HUD
must approve all county-grouped
surveys in advance. PHAs are cautioned
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that the resulting FMRs may not be
identical for the counties surveyed; each
individual FMR area will have a
separate FMR based on the relationship
of rents in that area to the combined
rents in the cluster of FMR areas. In
addition, PHAs are advised that in
counties where FMRs are based on the
combined rents in the cluster of FMR
areas, HUD will not revise their FMRs
unless the grouped survey results show
a revised FMR statistically different
from the combined rent level.
Survey samples should preferably be
randomly drawn from a complete list of
rental units for the FMR area. If this is
not feasible, the selected sample must
be drawn to be statistically
representative of the entire rental
housing stock of the FMR area. Surveys
must include units at all rent levels and
be representative by structure type
(including single-family, duplex, and
other small rental properties), age of
housing unit, and geographic location.
The current 5-year ACS data should be
used as a means of verifying if a sample
is representative of the FMR area’s
rental housing stock.
A PHA or contractor that cannot
obtain the recommended number of
sample responses after reasonable
efforts should consult with HUD before
abandoning its survey; in such
situations, HUD may find it appropriate
to relax normal sample size
requirements.
HUD has developed guidance on how
to provide data-supported comments on
Small Area FMRs using HUD’s special
tabulations of the distribution of gross
rents by unit bedroom count for ZIP
Code Tabulation Areas. This guidance is
available at https://www.huduser.gov/
portal/datasets/fmr.html in the FY 2019
FMR section and should be used by
interested parties in commenting on
whether or not the level of Small Area
FMRs are too high or too low (i.e., Small
Area FMRs that are larger than the gross
rent necessary to make 40 percent of the
units accessible for an individual ZIP
code or that are smaller than the gross
rent necessary to make 40 percent of the
units accessible for a given ZIP code).
HUD will post revised Small Area FMRs
after confirming commenters’
calculations.
As stated earlier in this notice, HUD
is required to use the most recent data
available when calculating FMRs.
Therefore, in order to reevaluate an
area’s FMR, HUD requires more current
rental market data than the 2016 ACS.
HUD encourages a PHA or other
interested party that believes the FMR
in their area is incorrect to file a
comment even if they do not have the
resources to provide market-wide rental
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data. In these instances, HUD will use
the comments, should survey funding
be restored, when determining the areas
HUD will select for HUD-funded local
area rent surveys.
VII. Information Regarding Public
Comments on May 30, 2018 Renewal
Funding Inflation Factor Federal
Register Notice
HUD received 10 comments
addressing the use of FMR surveys in
the calculation of Renewal Funding
Inflation Factors (RFIFs). Most of the
comments received directed HUD to
continue using FMR surveys in the
calculation of RFIFs. Consequently,
HUD does not have current plans to
discontinue use of FMR surveys in the
rent change component of RFIF
calculations. HUD is still determining
the exact methods to use when
incorporating surveys in RFIF
calculations. Public comments will be
discussed in greater detail, and HUD’s
responses will be provided, in the 2019
Renewal Funding Inflation Factor
notice. HUD provides the above
information in this notice for the
awareness of PHAs that are considering
undertaking a survey to reevaluate their
FY 2019 FMRs.
VIII. Environmental Impact
This Notice involves the
establishment of FMR 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 available at https://
www.huduser.gov/portal/datasets/
fmr.html.
Dated: August 27, 2018.
Todd M. Richardson,
General Deputy Assistant Secretary, Office
of Policy Development and Research.
Fair Market Rents for the Housing
Choice Voucher Program
Schedule B—General Explanatory
Notes
1. Geographic Coverage
a. METROPOLITAN AREAS—Most FMRs
are market-wide rent estimates that are
intended to provide housing
opportunities throughout the geographic
area in which rental-housing units are
in direct competition. HUD is using the
metropolitan core-based statistical areas
(CBSAs), which are made up of one or
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more counties, as defined by OMB, with
some modifications. HUD is generally
assigning separate FMRs to the
component counties of CBSA
Micropolitan Areas.
b. MODIFICATIONS TO OMB DEFINITIONS—
Following OMB guidance, the
estimation procedure for the FY 2019
FMRs incorporates OMB definitions of
metropolitan areas based on the CBSA
standards as implemented with 2000
Census data and updated by the 2010
Census in February 28, 2013, including
incremental adjustments through July
15, 2015. The adjustments made to the
2000 definitions to separate subparts of
these areas where FMRs or median
incomes would otherwise change
significantly are continued. To follow
HUD’s policy of providing FMRs at the
smallest possible area of geography, no
counties were added to existing
metropolitan areas due to recent
updates in metropolitan area
definitions. All counties added to
metropolitan areas by the CBSA will
still be treated as separate counties for
FMR calculations; that is, the rents from
a county that is a sub-area will not be
used in the remaining metropolitan subarea rent determination. All
metropolitan areas that have been
subdivided by HUD will use ACS data
which conforms to HUD’s area
definition if statistically reliable
information exists. If statistically
reliable data for a HUD defined area is
not available, HUD uses information
from larger encompassing geographies,
as described elsewhere in this notice.
Specific counties and New England
towns and cities within each state in
MSAs and HMFAs were not changed by
the February 28, 2013 OMB
metropolitan area definitions. These
areas are listed in Schedule B, available
online at https://www.huduser.gov/
portal/datasets/fmr.html.
2. Unit Bedroom Count Adjustments
Schedule B, available at https://
www.huduser.gov/portal/datasets/
fmr.html, shows the FMRs for zerobedroom through four-bedroom units.
The Schedule B addendum shows Small
Area FMRs for all metropolitan areas.
FMRs for unit sizes larger than four
bedrooms may be calculated by adding
15 percent to the four-bedroom FMR for
each extra bedroom. For example, the
FMR for a five-bedroom unit is 1.15
times the four-bedroom FMR, and the
FMR for a six-bedroom unit is 1.30
times the four-bedroom FMR. FMRs for
single-room-occupancy (SRO) units are
0.75 times the zero-bedroom FMR.
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3. Arrangement of FMR Areas and
Identification of Constituent Parts
a. FMR areas in online Schedule B are
listed alphabetically by metropolitan
FMR area and by non-metropolitan
county within each state and are
available at https://www.huduser.gov/
portal/datasets/fmr.html.
b. Constituent counties (and New
England towns and cities) included in
each metropolitan FMR area are listed
immediately following the listings of the
FMR dollar amounts. All constituent
parts of a metropolitan FMR area that
are in more than one state can be
identified by consulting the listings for
each applicable state.
c. Two non-metropolitan counties are
listed alphabetically on each line of the
non-metropolitan county listings.
d. The New England towns and cities
included in a non-metropolitan county
are listed immediately following the
county name.
[FR Doc. 2018–19090 Filed 8–29–18; 4:15 pm]
BILLING CODE 4210–67–P
DEPARTMENT OF HOUSING AND
URBAN DEVELOPMENT
[Docket No. FR–7001–N–47]
30-Day Notice of Proposed Information
Collection: Local Appeals to SingleFamily Mortgage Limits
Office of the Chief Information
Officer, HUD.
ACTION: Notice.
AGENCY:
HUD submitted the proposed
information collection requirement
described below to the Office of
Management and Budget (OMB) for
review, in accordance with the
Paperwork Reduction Act. The purpose
of this notice is to allow for 30 days of
public comment.
DATES: Comments Due Date: October 1,
2018.
ADDRESSES: Interested persons are
invited to submit comments regarding
this proposal. Comments should refer to
the proposal by name and/or OMB
Control Number and should be sent to:
HUD Desk Officer, Office of
Management and Budget, New
Executive Office Building, Washington,
DC 20503; fax: 202–395–5806, Email:
OIRAlSubmission@omb.eop.gov.
FOR FURTHER INFORMATION CONTACT:
Colette Pollard, Reports Management
Officer, QMAC, Department of Housing
and Urban Development, 451 7th Street
SW, Washington, DC 20410; email
Colette Pollard@hud.gov, or telephone
202–402–3400. This is not a toll-free
number. Person with hearing or speech
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SUMMARY:
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impairments may access this number
through TTY by calling the toll-free
Federal Relay Service at (800) 877–8339.
Copies of available documents
submitted to OMB may be obtained
from Ms. Pollard.
SUPPLEMENTARY INFORMATION: This
notice informs the public that HUD is
seeking approval from OMB for the
information collection described in
Section A.
The Federal Register notice that
solicited public comment on the
information collection for a period of 60
days was published on January 16, 2018
at 83 FR 2174.
A. Overview of Information Collection
Title of Information Collection: Local
Appeals to Single-Family Mortgage
Limits.
OMB Approval Number: 2502–0302.
Type of Request: Extension.
Form Number: None.
Description of the need for the
information and proposed use: Any
interested party may submit a request
for the mortgage limits to be increased
in a particular area if they believe that
the present limit does not accurately
reflect the higher sales prices in that
area. Any request for an increase must
be accompanied by sufficient housing
sales price data to justify higher limits.
This allows HUD the opportunity to
examine additional data to confirm or
adjust the set loan limit for a particular
area.
Respondents: (i.e., affected public):
Business or other for-profit.
Estimated Number of Respondents:
14.
Estimated Number of Responses: 14.
Frequency of Response: 1.
Average Hours per Response: 7.
Total Estimated Burdens: 98.
Solicitation of Public Comment
This notice is soliciting comments
from members of the public and affected
parties concerning the collection of
information described in Section A on
the following:
(1) 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;
(2) The accuracy of the agency’s
estimate of the burden of the proposed
collection of information;
(3) Ways to enhance the quality,
utility, and clarity of the information to
be collected; and
(4) Ways to minimize the burden of
the collection of information on those
who are to respond: including through
the use of appropriate automated
collection techniques or other forms of
PO 00000
Frm 00090
Fmt 4703
Sfmt 4703
44651
information technology, e.g., permitting
electronic submission of responses.
HUD encourages interested parties to
submit comment in response to these
questions.
Authority: Section 3507 of the Paperwork
Reduction Act of 1995, 44 U.S.C. Chapter 35.
Dated: August 21, 2018.
Colette Pollard,
Department Reports Management Officer,
Office of the Chief Information Officer.
[FR Doc. 2018–19002 Filed 8–30–18; 8:45 am]
BILLING CODE 4210–67–P
DEPARTMENT OF HOUSING AND
URBAN DEVELOPMENT
[Docket No. FR–7001–N–48]
30-Day Notice of Proposed Information
Collection: Survey To Assess
Operational and Capacity Status of
Housing Counseling Agencies After a
Disaster
Office of the Chief Information
Officer, HUD.
ACTION: Notice.
AGENCY:
HUD submitted the proposed
information collection requirement
described below to the Office of
Management and Budget (OMB) for
review, in accordance with the
Paperwork Reduction Act. The purpose
of this notice is to allow for 30 days of
public comment.
DATES: Comments Due Date: October 1,
2018.
ADDRESSES: Interested persons are
invited to submit comments regarding
this proposal. Comments should refer to
the proposal by name and/or OMB
Control Number and should be sent to:
HUD Desk Officer, Office of
Management and Budget, New
Executive Office Building, Washington,
DC 20503; fax: 202–395–5806, Email:
OIRA_Submission@omb.eop.gov.
FOR FURTHER INFORMATION CONTACT: Inez
C. Downs, Reports Management Officer,
QMAC, Department of Housing and
Urban Development, 451 7th Street SW,
Washington, DC 20410; email
Inez.C.Downs@hud.gov, or telephone
202–402–8046. This is not a toll-free
number. Person with hearing or speech
impairments may access this number
through TTY by calling the toll-free
Federal Relay Service at (800) 877–8339.
Copies of available documents
submitted to OMB may be obtained
from Ms. Downs.
SUPPLEMENTARY INFORMATION: This
notice informs the public that HUD is
seeking approval from OMB for the
information collection described in
Section A.
SUMMARY:
E:\FR\FM\31AUN1.SGM
31AUN1
]]>Agencies
[Federal Register Volume 83, Number 170 (Friday, August 31, 2018)]
[Notices]
[Pages 44644-44651]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-19090]
=======================================================================
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DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
[Docket No. FR-6125-N-01]
Fair Market Rents for the Housing Choice Voucher Program,
Moderate Rehabilitation Single Room Occupancy Program, and Other
Programs Fiscal Year 2019
AGENCY: Office of the Assistant Secretary for Policy Development and
Research, HUD.
ACTION: Notice of Fiscal Year (FY) 2019 Fair Market Rents (FMRs) and
response to public comments on the use of FMR surveys in the
calculation of renewal funding inflation factors.
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SUMMARY: Section 8(c)(1) of the United States Housing Act of 1937
(USHA), as amended by the Housing Opportunity Through Modernization Act
of 2016 (HOTMA), requires the Secretary to publish FMRs not less than
annually, adjusted to be effective on October 1 of each year. This
notice describes the methods used to calculate the FY 2019 FMRs and
enumerates the procedures for Public Housing Agencies (PHAs) and other
interested parties to request reevaluations of their FMRs, as required
by HOTMA. To help inform PHAs' decisions concerning reevaluation
requests, this notice briefly addresses HUD's May 30, 2018 notice
regarding the use of FMR surveys in the calculation of Renewal Funding
Inflation Factors.
DATES:
Comment Due Date: October 1, 2018.
Effective Date: The Fair Market Rents are effective October 1, 2018
unless HUD receives a request for reevaluation of specific area FMRs as
described below.
ADDRESSES: HUD invites interested persons to submit comments regarding
the FMRs and to request reevaluation of the FY 2019 FMRs to the
Regulations Division, Office of General Counsel, Department of Housing
and Urban Development, 451 Seventh Street SW, Room 10276, Washington,
DC 20410-0001. Communications must refer to the above docket number and
title and should contain the information specified in the ``Request for
Comments/Request for Reevaluation'' section. There are two methods for
submitting public comments.
1. Submission of Comments by Mail. Comments or requests for
reevaluation may be submitted by mail to the Regulations Division,
Office of General Counsel, Department of Housing and Urban Development,
451 7th Street SW, Room 10276, Washington, DC 20410-
[[Page 44645]]
0500. Often, submission of comments by mail results in delayed
delivery. To ensure timely receipt of comments or reevaluation
requests, HUD recommends that comments or requests submitted by mail be
submitted at least 2 weeks in advance of the deadline. HUD will make
all comments or reevaluation requests received by mail available to the
public at https://www.regulations.gov.
2. Electronic Submission of Comments. Interested persons may submit
comments or reevaluation requests electronically through the Federal
eRulemaking Portal at https://www.regulations.gov. HUD strongly
encourages commenters to submit comments or reevaluation requests
electronically. Electronic submission of comments or reevaluation
requests allows the author maximum time to prepare and submit a comment
or reevaluation request, ensures timely receipt by HUD, and enables HUD
to make comments immediately available to the public. Comments or
reevaluation requests submitted electronically through the https://www.regulations.gov website can be viewed by other submitters and
interested members of the public. Commenters or reevaluation requestors
should follow instructions provided on that site to submit comments or
reevaluation requests electronically.
Note: To receive consideration as public comments or
reevaluation requests, comments or requests must be submitted
through one of the two methods specified above. Again, all
submissions must refer to the docket number and title of the notice.
No Facsimile Comments or Reevaluation Requests. Facsimile (FAX)
comments or requests for FMR reevaluation are not acceptable.
Public Inspection of Public Comments and Reevaluation Requests. All
properly submitted comments and reevaluation requests and
communications regarding this notice submitted to HUD will be available
for public inspection and copying between 8 a.m. and 5 p.m. weekdays at
the above address. Due to security measures at the HUD Headquarters
building, an advance appointment to review the public comments and
reevaluation requests must be scheduled by calling the Regulations
Division at 202-708-3055 (this is not a toll-free number). Individuals
with speech or hearing impairments may access this number through TTY
by calling the Federal Relay Service at 800-877-8339 (toll-free
number). Copies of all comments and reevaluation requests submitted are
available for inspection and downloading at https://www.regulations.gov.
Electronic Data Availability. This Federal Register notice will be
available electronically from the HUD User page at https://www.huduser.gov/portal/datasets/fmr.html. Federal Register notices also
are available electronically at https://www.federalregister.gov/ the
U.S. Government Printing Office website. Complete documentation of the
methods and data used to compute each area's FY 2019 FMRs is available
at https://www.huduser.gov/portal/datasets/fmr.html#2019_query. FY 2019
FMRs are available in a variety of electronic formats at https://www.huduser.gov/portal/datasets/fmr.html. FMRs may be accessed in PDF
as well as in Microsoft Excel. Small Area FMRs for all metropolitan FMR
areas are available in Microsoft Excel format at: https://www.huduser.gov/portal/datasets/fmr/smallarea/.
FOR FURTHER INFORMATION CONTACT: For technical information on the
methodology used to develop FMRs or a listing of all FMRs, please call
the HUD USER information line at 800-245-2691 or access the information
on the HUD USER website at https://www.huduser.gov/portal/datasets/fmr.html. FMRs are listed at the 40th or 50th percentile in Schedule B.
For informational purposes, 40th percentile rents for the areas with
50th percentile FMRs will be provided in the HUD FY 2019 FMR
documentation system at https://www.huduser.gov/portal/datasets/fmr.html#2019_query and 50th percentile rents for all FMR areas will be
published at https://www.huduser.gov/portal/datasets/50per.html.
Questions related to use of FMRs or voucher payment standards
should be directed to the respective local HUD program staff. Questions
on how to conduct FMR surveys may be addressed to Marie L. Lihn or
Peter B. Kahn of the Economic and Market Analysis Division, Office of
Economic Affairs, Office of Policy Development and Research at HUD
headquarters, 451 7th Street SW, Room 8208, Washington, DC 20410;
telephone number 202-402-2409 (this is not a toll-free number), or via
email at [email protected]. Persons with hearing or speech impairments
may access HUD numbers through TTY by calling the Federal Relay Service
at 800-877-8339 (toll-free number).
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 Housing Choice Voucher (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. HUD also uses the FMRs to determine initial
renewal rents for some expiring project-based Section 8 contracts,
initial rents for housing assistance payment contracts in the Moderate
Rehabilitation Single Room Occupancy program, rent ceilings for rental
units in both the HOME Investment Partnerships program and the
Emergency Solution Grants program, calculation of maximum award amounts
for Continuum of Care recipients and the maximum amount of rent a
recipient may pay for property leased with Continuum of Care funds, and
calculation of flat rents in Public Housing units. 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
and is typically set at the 40th percentile of the distribution of
gross rents. HUD's FMR calculations represent HUD's best effort to
estimate the 40th percentile gross rent paid by recent movers into
standard quality units in each FMR area. In addition, all rents
subsidized under the HCV program must meet reasonable rent standards.
As of October 2, 2000, HUD required FMRs to be set at the 50th
percentile for areas where HUD determined higher FMRs were needed to
help families assisted under certain HUD programs find and lease decent
and affordable housing (65 FR 58870). On November 16, 2016, HUD
published a Final Rule entitled ``Establishing a More Effective Fair
Market Rent System; Using Small Area Fair Market Rents in the Housing
Choice Voucher Program Instead of the Current 50th Percentile FMRs''
(Small Area FMR final rule) (81 FR 80567), with an effective date of
January 17, 2017. The Small Area FMR final rule eliminates the 50th
percentile FMR provisions in the FMR regulations (24 CFR 888.113) \1\
and provides that areas
[[Page 44646]]
currently designated as 50th percentile areas remain 50th percentile
areas until their current 3-year eligibility period expires. At the end
of the 3-year eligibility period, these areas revert to 40th percentile
FMR status. If PHAs in areas converting from 50th percentile FMRs to
40th percentile FMRs meet the deconcentration criteria specified in 24
CFR 982.503(f), available at: https://www.gpo.gov/fdsys/pkg/CFR-2016-title24-vol4/pdf/CFR-2016-title24-vol4-sec982-503.pdf, they may
petition HUD to maintain payment standards based on 50th percentile
rents on that basis.
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\1\ Separately from the Small Area FMR regulations, HUD also
calculates and posts 50th percentile rent estimates for the purposes
of Success Rate Payment Standards, as defined at 24 CFR 982.503(e)
(estimates available at: https://www.huduser.gov/portal/datasets/50per.html), which policy was not changed by the Small Area FMR
rule.
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The following areas completed their 3 years of 50th percentile
eligibility in FY 2018 and will revert to 40th percentile FMR status in
FY 2019:
FY 2018 50th-Percentile FMR Areas Reverting to 40th Percentile FMRs in
FY 2019
------------------------------------------------------------------------
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Baltimore-Columbia-Towson, MD MSA......... Philadelphia-Camden-
Wilmington, PA-NJ-DE-MD.
Washington, DC-VA-MD HUD Metro FMR Area... West Palm Beach-Boca Raton,
FL HUD Metro FMR Area.
------------------------------------------------------------------------
The following is a list of FMR areas that retain 50th percentile
FMRs for FY 2019, along with the year that they will revert to 40th
percentile status:
FY 2019 50th-Percentile FMR Areas With Year of Reversion to 40th
Percentile FMRs
------------------------------------------------------------------------
------------------------------------------------------------------------
Bergen-Passaic, NJ HUD Metro FMR Area........................ 2020
Spokane, WA HUD Metro FMR Area............................... 2020
San Diego-Carlsbad-San Marcos, CA MSA........................ 2020
------------------------------------------------------------------------
II. Procedures for the Development of FMRs
Section 8(c)(1) of the USHA, as amended by the Housing Opportunity
Through Modernization Act of 2016 (HOTMA) (Pub. L. 114-201, approved
July 29, 2016), requires the Secretary of HUD to publish FMRs not less
than annually. Section 8(c)(1)(A) states that each FMR ``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 . . .'' Section 8(c)(1)(B)
requires that HUD publish, not less than annually, new FMRs on the
World Wide Web or in any other manner specified by the Secretary, and
that HUD must also notify the public of when it publishes FMRs by
Federal Register notice. After notification, the FMRs ``shall become
effective no earlier than 30 days after the date of such publication,''
and HUD must provide a procedure for the public to comment and request
a reevaluation of the FMRs in a jurisdiction before the FMRs become
effective. Consistent with the statute, HUD is issuing this notice to
notify the public that FY 2019 FMRs are available at https://www.huduser.gov/portal/datasets/fmr.html and will become effective on
October 1, 2018. This notice also provides procedures for FMR
reevaluation requests.
III. FMR Methodology
This section provides a brief overview of how HUD computes the FY
2019 FMRs. HUD is making no changes to the estimation methodology for
FMRs as used by HUD for the FY 2018 FMRs. The only difference is the
use of more recent data. For complete information on how HUD determines
FMR areas, and on how HUD derives each area's FMRs, see the online
documentation at https://www.huduser.gov/portal/datasets/fmr.html#2019_query.
In conjunction with the use of 2016 American Community Survey (ACS)
data, HUD has implemented the following geography changes: Effective
May 1, 2016, Garfield County, Oklahoma became the metropolitan area of
Enid, OK metropolitan statistical area (MSA). In addition, HUD changed
from two separate county-based HUD Metro FMR Areas (HMFA) (Kalawao
County, HI HMFA and Maui County, HI HMFA) to a two county MSA, the
Kahului-Wailuku-Lahaina, HI MSA due to extremely limited data available
for Kalawao County, HI.
A. Base Year Rents
For FY 2019 FMRs, HUD uses the U.S. Census Bureau's 5-year ACS data
collected between 2012 and 2016 (released in December 2017) as the base
rents for the FMR calculations. In order to improve the statistical
reliability of the ACS data used in the FMR calculations, HUD pairs a
``margin of error'' test \2\ with an additional test based on the
number of survey observations supporting the estimate, beginning with
the FY 2018 FMRs and continuing with the FY 2019 FMRs. The Census
Bureau does not provide HUD with an exact count of the number of
observations supporting the ACS estimate; rather, the Census Bureau
provides HUD with categories of the number of survey responses
underlying the estimate, including whether the estimate is based on
more than 100 observations. Using these categories, HUD requires that,
in addition to the ``margin of error'' test, ACS rent estimates must be
based on at least 100 observations in order to be used as base rents.
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\2\ HUD's margin of error test requires that the margin of error
of the ACS estimate is less than half the size of the estimate
itself.
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For areas in which the 5-year ACS data for two-bedroom, standard
quality gross rents do not pass the statistical reliability tests
(i.e., have a margin of error ratio greater than 50 percent or fewer
than 100 observations), HUD will use an average of the base rents over
the three most recent years (provided that there is data available for
at least two of these years),\3\ or if such data is not available,
using the two-bedroom rent data within the next largest geographic
area, which for a non-metropolitan area would be the state non-metro
area rent data.
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\3\ For FY 2019, the three years of ACS data in question are
2014, 2015 and 2016. The 2014 data are adjusted to be denominated in
2016 dollars using the growth in CPI-based gross rents measured
between 2014 and 2016. Similarly, the 2015 gross rent data is
adjusted to 2016 denominated dollars using the growth in CPI-based
gross rents measured between 2015 and 2016.
---------------------------------------------------------------------------
Since FY 2012, HUD has updated base rents each year based on new 5-
year data, for which HUD used 2005-2009 ACS data. HUD is also updating
base rents for Puerto Rico FMRs using data collected through the Puerto
Rico Community Surveys (PRCS) between 2012 and 2016. HUD first updated
the Puerto Rico base rents in FY 2014 based on 2007-2011 PRCS data
collected through the ACS program.
HUD historically based FMRs on gross rents for recent movers (those
who have moved into their current residence in the last 24 months)
measured directly from decennial census long form survey responses.
However, due to the way the 5-year ACS data are constructed, HUD
developed a new method for calculating recent-mover FMRs in FY 2012,
which HUD continues to use in FY 2019: HUD assigns all areas a base
rent, which is the two-bedroom standard quality 5-year gross rent
estimate from the ACS; then, because HUD's regulations mandate that
FMRs must be published as recent mover gross rents, HUD applies a
recent mover factor to the base rents assigned from the 5-year ACS
data.\4\ The calculation of the recent mover factor is described below.
---------------------------------------------------------------------------
\4\ HUD's regulations incorporate recent mover data into FMR
calculations because the gross rents of those who most recently
moved into their units likely depicts the most current market
conditions observable through the ACS. Rents paid by renters
renewing existing leases may not reflect the most current market
conditions, in part because these renters may have clauses within
their leases that predetermine the annual increases in rents paid
(i.e., rent escalator clauses).
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[[Page 44647]]
B. Recent Mover Factor
Following the assignment of the standard quality two-bedroom rent
described above, HUD applies a recent mover factor to these rents. HUD
calculates the recent mover factor as the change between the 5-year
2012-2016 standard quality two-bedroom gross rent and the 1-year 2016
recent mover gross rent for the recent mover factor area. HUD does not
allow recent mover factors to lower the standard quality base rent;
therefore, if the 5-year standard quality rent is larger than the
comparable 1-year recent mover rent, the recent mover factor is set to
1.
The calculation of the recent mover factor for FY 2019 continues
with the modifications first applied to the FY 2018 FMRs. Similar to
the statistical reliability requirements for base rents, for a recent
mover gross rent estimate to be considered statistically reliable, the
estimate must have a margin of error ratio that is less than 50
percent, and the estimate must be based on 100 or more observations.
When an FMR area does not have statistically reliable two-bedroom
recent mover data, the ``all-bedroom'' \5\ 1-year recent mover ACS data
for the FMR area is tested for statistical reliability. An ``all-
bedroom'' recent mover factor from the FMR area will be used, if
statistically reliable, before substituting a two-bedroom recent mover
factor from the next larger geography. Incorporating ``all-bedroom''
rents into the recent mover factor calculation when statistically
reliable two-bedroom data is not available preserves the use of local
information to the greatest extent possible.
---------------------------------------------------------------------------
\5\ ``All-bedroom'' refers to estimates aggregated together
regardless of the number of bedrooms in the dwelling unit.
---------------------------------------------------------------------------
However, where statistically reliable ``all-bedroom'' data is not
available, HUD will continue to base FMR areas' recent mover factors on
larger geographic areas, following the same procedures used
historically: HUD tests data from differently sized geographic areas
from small to large, and bases the recent mover factor on the first
statistically reliable recent mover rent estimate in the geographic
hierarchy listed below.
For metropolitan areas that are subareas of larger
metropolitan areas, the order is the FMR area, metropolitan area,
aggregated metropolitan parts of the state, and state.
For metropolitan areas that are not divided, the order is
the FMR area, aggregated metropolitan parts of the state, and the
state.
In non-metropolitan areas, the order is the FMR area,
aggregated non-metropolitan parts of the state, and the state.
The process for calculating each area's recent mover factor is
detailed in the FY 2019 FMR documentation system available at: https://www.huduser.gov/portal/datasets/fmr.html#2019_query. Applying the
recent mover factor to the standard quality base rent produces an ``as
of'' 2016 recent mover two-bedroom gross rent for the FMR area.
C. Other Rent Survey Data
HUD calculated base rents for the insular areas using the 2010
decennial census of American Samoa, Guam, the Northern Mariana Islands,
and the Virgin Islands beginning with the FY 2016 FMRs.\6\ This 2010
base year data is updated through 2016 for the FY 2019 FMRs using
national ACS data.
---------------------------------------------------------------------------
\6\ The ACS is not conducted in the Pacific Islands (Guam,
Northern Marianas and American Samoa) or the US Virgin Islands. As
part of the 2010 Decennial Census, the Census Bureau conducted
``long-form'' sample surveys for these areas. The results gathered
by this long form survey have been incorporated into the FY 2019
FMRs.
---------------------------------------------------------------------------
HUD does not use ACS data to establish the base rent or recent
mover factor for 10 areas where the FY 2018 FMR was adjusted based on
the following survey data:
Survey data from 2016 is used to adjust the FMR for
Portland, ME.
Survey data from 2017 is used to adjust the FMRs for Santa
Rosa, CA; Seattle-Bellevue, WA HMFA; Hood River County, OR; Wasco
County, OR; Hawaii County, HI; Jonesboro, AR HMFA; Urban Honolulu, HI
MSA; and Santa Maria-Santa Barbara, CA MSA.
Survey data from 2018 is used to adjust the FMR for Santa
Cruz-Watsonville, CA MSA.
For larger metropolitan areas that have valid ACS one-year recent
mover data, survey data may not be any older than the midpoint of the
calendar year for the ACS one-year data. Since the ACS one-year data
used for the FY 2019 FMRs is from 2016, larger areas may not use survey
data collected before June 30, 2016, for the FY 2019 FMRs. Smaller
areas without 1-year ACS data, may continue to use local survey data
until the mid-point of the 5-year ACS data is more recent than the
local survey.\7\
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\7\ The 2013-2017 5-Year ACS data and the 2017 1-Year ACS data
will be used to calculate the FY 2020 FMRs. We did discontinue the
use of survey in Kauai and Maui counties in HI and in Vallejo-
Fairfield, CA even though these surveys did not meet the age
requirements because the data provided did not meet our current
tighter statistical standards enacted for the FY 2018 FMRs. In all
cases the FMRs for FY 2019 would have been lower than for FY 2018
and in some cases, much lower.
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D. Updates From 2016 to 2017 and Forecast to FY 2019
HUD updates the ACS-based ``as of'' 2016 rent through the end of
2017 using the annual change in gross rents measured through the
Consumer Price Index (CPI) from 2016 to 2017 (CPI update factor). As in
previous years, HUD uses local CPI data coupled with Consumer
Expenditure Survey data for FMR areas with at least 75 percent of their
population within Class A metropolitan areas covered by local CPI data.
In FMR areas that do not meet this criterion, including Class B and C
size metropolitan areas and non-metropolitan areas, HUD uses CPI data
aggregated at the Census region level. Additionally, HUD is using CPI
data collected locally in Puerto Rico as the basis for CPI adjustments
from 2016 to 2017 for all Puerto Rico FMR areas.
Following the application of the appropriate CPI update factor, HUD
trends the gross rent estimate from 2017 to FY 2019 using a national
forecast of expected growth in gross rents. This forecast produces ``as
of'' FY 2019 FMRs.
E. Bedroom Rent Adjustments
HUD updates the bedroom ratios used in the calculation of FMRs
annually. The bedroom ratios which HUD used in the calculation of FY
2019 FMRs have been updated using average data from three 5-year ACS
data series (2010-2014, 2011-2015, and 2012-2016). The bedroom ratio
methodology used in this update is unchanged from previous calculations
using 2000 Census data. HUD only uses estimates with a margin of error
ratio of less than 50 percent. If an area does not have reliable
estimates in at least two of the previous three ACS releases, bedroom
ratios for the area's larger parent geography are used.
HUD uses two-bedroom units for its primary calculation of FMR
estimates. This is generally the most common size of rental unit and,
therefore, the most reliable to survey and analyze. After estimating
two-bedroom FMRs, HUD calculates bedroom ratios for each FMR area which
relate the prices of smaller and larger units to the cost of two-
bedroom units. To prevent illogical results in particular FMR areas,
HUD establishes bedroom interval ranges which set upper and lower
limits for bedroom ratios nationwide, based on an analysis of the range
of such intervals for all areas with large enough samples to permit
accurate bedroom ratio determinations.
[[Page 44648]]
In the calculation of FY 2019 FMR estimates, HUD set the bedroom
interval ranges as follows: Efficiency FMRs are constrained to fall
between 0.64 and 0.85 of the two-bedroom FMR; one-bedroom FMRs must be
between 0.76 and 0.87 of the two-bedroom FMR; three-bedroom FMRs (prior
to the adjustments described below) must be between 1.15 and 1.33 of
the two-bedroom FMR; and four-bedroom FMRs (again, prior to adjustment)
must be between 1.26 and 1.63 of the two-bedroom FMR. Given that these
interval ranges partially overlap across unit bedroom counts, HUD
further adjusts bedroom ratios for a given FMR area, if necessary, to
ensure that higher bedroom-count units have higher rents than lower
bedroom-count units within that area. The bedroom ratios for Puerto
Rico follow these constraints.
HUD also further adjusts the rents for three-bedroom and larger
units to reflect HUD's policy to set higher rents for these units.\8\
This adjustment is intended to increase the likelihood that the largest
families, who have the most difficulty in leasing units, will be
successful in finding eligible program units. The adjustment adds 8.7
percent to the unadjusted three-bedroom FMR estimates and adds 7.7
percent to the unadjusted four-bedroom FMR estimates.
---------------------------------------------------------------------------
\8\ As mentioned above, HUD applies the interval ranges for the
three-bedroom and four-bedroom FMR ratios prior to making these
adjustments. In other words, the adjusted three- and four-bedroom
FMRs can exceed the interval ranges, but the unadjusted FMRs cannot.
---------------------------------------------------------------------------
HUD derives FMRs for units with more than four bedrooms by adding
15 percent to the four-bedroom FMR for each extra bedroom. For example,
the FMR for a five-bedroom unit is 1.15 times the four-bedroom FMR, and
the FMR for a six-bedroom unit is 1.30 times the four-bedroom FMR.
Similarly, HUD derives FMRs for single-room occupancy units by
subtracting 25 percent from the zero-bedroom FMR (i.e., they are set at
0.75 times the zero-bedroom (efficiency) FMR).\9\
---------------------------------------------------------------------------
\9\ As established in the interim rules implementing the
provisions of the Quality Housing and Work Responsibility Act of
1998 (Title V of the FY 1999 HUD Appropriations Act; Pub. L. 105-
276). In 24 CFR 982.604.
---------------------------------------------------------------------------
F. Limit on FMR Decreases
Within the Small Area FMR final rule published on November 16,
2016, HUD amended 24 CFR 888.113 to include a limit on the amount that
FMRs may annually decrease. The current year's FMRs resulting from the
application of the bedroom ratios, as discussed in section (E) above,
may be no less than 90 percent of the prior year's FMRs for units with
the same number of bedrooms. Accordingly, if the current year's FMRs
are less than 90 percent of the prior year's FMRs as calculated by the
above methodology, HUD sets the current year's FMRs equal to 90 percent
of the prior year's FMRs. For areas where use of Small Area FMRs in the
administration of their voucher programs is required, the FY 2019 Small
Area FMRs may be no less than 90 percent of the FY 2018 Small Area
FMRs. For all other metropolitan areas, for which Small Area FMRs are
calculated so that they may be used for other allowable purposes if
desired (e.g., exception payment standards, public housing flat rents),
the FY 2019 Small Area FMRs may be no less than 90 percent of the
greater of the FY 2018 metropolitan area-wide FMRs or the applicable FY
2018 Small Area FMR.
G. Other Limits on FMRs
All FMRs are subject to a state or national minimum. HUD calculates
a population-weighted median two-bedroom 40th percentile rent across
all non-metropolitan portions of each state, which, for the purposes of
FMRs, is the state minimum rent. State-minimum rents for each FMR area
are available in the FY 2019 FMR Documentation System, available at
https://www.huduser.gov/portal/datasets/fmr.html#2019_query. HUD also
calculates the population-weighted median two-bedroom 40th percentile
rent across all non-metropolitan portions of the country, which, for
the purposes of FMRs, is the national minimum rent. For FY 2019, the
national minimum rent is $700. The applicable minimum rent for a
particular area is the lower of the state or national minimum. Each
area's two-bedroom FMR must be no less than the applicable minimum
rent.
As in prior years, Small Area FMRs are subject to a maximum limit.
HUD limits each two-bedroom Small Area FMR to be no more than 150
percent of the two-bedroom FMR for the metropolitan area where the ZIP
code is located.
IV. Manufactured Home Space Surveys
HOTMA changed the manner in which vouchers are used to subsidize
manufactured home units. Please see HUD's Notice from January 18, 2017
(82 FR 5458) for more detailed information concerning the use of
vouchers for manufactured home units. Due to the nature of these
changes, HUD will no longer be publishing exception rents for
Manufactured Home Space pad rents.
V. Small Area FMRs
PHAs operating the Housing Choice Voucher (HCV) program in the 24
metropolitan areas identified in the November 16, 2016 Federal Register
notice ``Small Area Fair Market Rents in Housing Choice Voucher Program
Values for Selection Criteria and Metropolitan Areas Subject to Small
Area Fair Market Rents'' (81 FR 80678) are required to use Small Area
FMRs unless the PHA has received a temporary exemption from such use;
HUD has suspended the Small Area FMR designation for the metropolitan
area under 24 CFR 888.113(c)(4); or the PHA is a Moving to Work PHA
with an approved alternative payment standard policy. For more
information on the process of obtaining a temporary exemption or area-
wide suspension, please see PIH Notice 2018-01: Guidance on Recent
Changes in Fair Market Rent (FMR), Payment Standard, and Rent
Reasonableness Requirements in the Housing Choice Voucher Program, item
(9) beginning on page 13, available at: https://www.hud.gov/sites/dfiles/PIH/documents/PIH-2018-01.pdf. Small Area FMRs for all
metropolitan areas are listed in the Schedule B addendum. Other
metropolitan PHAs interested in using Small Area FMRs in the operation
of their Housing Choice Voucher program must contact their local HUD
field office to request approval from HUD.
In the FY 2018 FMR Federal Register notice (82 FR 41637), HUD
announced changes in the way Small Area FMRs are calculated and
continues this change for the FY 2019 Small Area FMRs. HUD calculates
Small Area FMRs directly from the standard quality gross rents provided
to HUD by the Census Bureau for ZIP Code Tabulation Areas (ZCTAs), when
such data is statistically reliable, instead of using the current rent
ratio calculation. The ZCTA two-bedroom equivalent 40th percentile
gross rent is analogous to the standard quality base rents set for
metropolitan areas and non-metropolitan counties. For each ZCTA with
statistically reliable gross rent estimates, using the expanded test of
statistical reliability first used in FY 2018 (i.e., estimates with
margins of error ratios below 50 percent and based on at least 100
observations), HUD will calculate a two-bedroom equivalent 40th
percentile gross rent using the first statistically reliable gross rent
distribution data from the following data sets (in this order): Two-
bedroom gross rents, one-bedroom gross rents, and three-bedroom gross
rents. If either the one-bedroom or three-bedroom gross rent data is
used because the two-
[[Page 44649]]
bedroom gross rent data is not statistically reliable, the one-bedroom
or three-bedroom 40th percentile gross rent will be converted to a two-
bedroom equivalent rent using the bedroom ratios for the ZCTA's parent
metropolitan area. To increase stability to these Small Area FMR
estimates, HUD averages the latest three years of gross rent
estimates.\10\
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\10\ For example, for FY 2019 Small Area FMRs, HUD averages the
gross rents from 2014, 2015 and 2016 5-Year ACS estimates. The 2014
and 2015 gross rent estimates would be adjusted to 2016 dollars
using the metropolitan area's gross rent CPI adjustment factors.
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For ZCTAs without usable gross rent data by bedroom size, HUD will
continue to calculate Small Area FMRs using the rent ratio method
similar to that which HUD has used in past Small Area FMR calculations.
To calculate Small Area FMRs using a rent ratio, HUD divides the median
gross rent across all bedrooms for the small area (a ZIP code) by the
similar median gross rent for the metropolitan area of the ZIP code. 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. HUD multiplies
this rent ratio by the current two-bedroom rent for the metropolitan
area containing the small area to generate the current year two-bedroom
rent for the small area.
HUD continues to use a rolling average of ACS data in calculating
the Small Area FMR rent ratios. HUD believes coupling the most current
data with previous year's data minimizes excessive year-to-year
variability in Small Area FMR rent ratios due to sampling variance.
Therefore, for FY 2019 Small Area FMRs, HUD has updated the rent ratios
to use an average of the rent ratios calculated from the 2010-2014,
2011-2015, and 2012-2016 5-year ACS estimates.
VI. Request for Public Comments and FMR Reevaluations
Although HUD has not changed the FMR estimation method for FY 2019,
HUD will continue to accept public comments on the methods HUD uses to
calculate FY 2019 FMRs, including Small Area FMRs, and the FMR levels
for specific areas. Due to its current funding levels, HUD no longer
has sufficient resources to conduct local surveys of rents to address
comments filed regarding the FMR levels for specific areas. PHAs may
continue to fund such surveys independently, as specified below, using
administrative fees if they so choose. HUD continually strives to
calculate FMRs that meet the statutory requirement of using ``the most
recent available data'' while also serving as an effective program
parameter.
PHAs or other interested parties interested in requesting HUD
reevaluation of their area's FY 2019 FMRs, as provided for under
section 8(c)(1)(B) of USHA, must follow the following procedures:
1. By the end of the comment period, such reevaluation requests
must be submitted publicly through www.regulations.gov or directly to
HUD as described above. The area's PHA or, in multijurisdictional
areas, PHA(s) representing at least half of the voucher tenants in the
FMR area, must agree that the reevaluation is necessary.
2. In order for a reevaluation to occur, the requestor(s) must
supply HUD with data more recent than the 2016 American Community
Survey data used in the calculation of the FY 2019 FMRs. HUD requires
data on gross rents paid in the FMR area for standard quality rental
housing units. The data delivered must be sufficient for HUD to
calculate a 40th and 50th percentile two-bedroom rent. Should this type
of data not be available, requestors may gather this information using
the survey guidance available at https://www.huduser.gov/portal/datasets/fmr/NoteRevisedAreaSurveyProcedures.pdf and https://www.huduser.gov/portal/datasets/fmr/PrinciplesforPHA-ConductedAreaRentSurveys.pdf.
3. On or about October 2, HUD will post a list, at https://www.huduser.gov/portal/datasets/fmr.html of the areas requesting
reevaluations and where FY 2018 FMRs remain in effect.
4. Data for reevaluations must be supplied to HUD no later than
Friday, January 11, 2019. On Monday January 14, 2018, HUD will post at
https://www.huduser.gov/portal/datasets/fmr.html a listing of the areas
failing to deliver data and making the FY 2019 FMRs effective in these
areas.
5. HUD will use the data delivered by January 11, 2019, to
reevaluate the FMRs and following the reevaluation, will post revised
FMRs with an accompanying Federal Register notice stating the revised
FMRs are available, which will include HUD responses to comments filed
during the comment period.
6. Any data supporting a change in FMRs supplied after January 11,
2019, will be incorporated into FY 2020 FMRs.
7. PHAs operating in areas where the calculated FMR is lower than
the published FMR (i.e., those areas where HUD has limited the decrease
in the annual change in the FMR to 10 percent) may request payment
standards below the basic range (24 CFR 982.503(d)) and reference the
``unfloored'' rents (i.e., the unfinalized FMRs calculated by HUD prior
to application of the 10-percent-decrease limit) depicted in the FY
2019 FMR Documentation System available at: https://www.huduser.gov/portal/datasets/fmr.html#2019_query.
Questions on how to conduct FMR surveys may be addressed to Marie L.
Lihn or Peter B. Kahn of the Economic and Market Analysis Division,
Office of Economic Affairs, Office of Policy Development and Research
at HUD headquarters, 451 7th Street SW, Room 8208, Washington, DC
20410; telephone number 202-402-2409 (this is not a toll-free number),
or via email at [email protected].
For small metropolitan areas without one-year ACS data and non-
metropolitan counties, HUD has developed a method using mail surveys
that is discussed on the FMR web page: https://www.huduser.gov/portal/datasets/fmr.html#survey_info. This method allows for the collection of
as few as 100 one-bedroom, two-bedroom and three-bedroom recent mover
(tenants that moved in last 24 months) units.
While HUD has not developed a specific method for mail surveys in
areas with 1-year ACS data or in areas not covered by ACS data, HUD
will apply the standard established for Random-Digit Dialing (RDD)
telephone rent surveys. HUD will evaluate these survey results to
determine whether to establish a new FMR statistically different from
the current FMR, which means that the survey confidence interval must
not include the FMR. The survey should collect results based on 200
one-bedroom and two-bedroom eligible recent mover units to provide a
small enough confidence interval for significant results in large
market mail surveys. Areas with statistically reliable 1-year ACS data
are not considered to be good candidates for local surveys due to the
size and completeness of the ACS process.
Other survey methods are acceptable in providing data to support
reevaluation requests if the survey method can provide statistically
reliable, unbiased estimates of the gross rent of the entire FMR area.
In general, recommendations for FMR changes and supporting data must
reflect the rent levels that exist within the entire FMR area and
should be statistically reliable.
PHAs in non-metropolitan areas may, in certain circumstances,
conduct surveys of groups of counties. HUD must approve all county-
grouped surveys in advance. PHAs are cautioned
[[Page 44650]]
that the resulting FMRs may not be identical for the counties surveyed;
each individual FMR area will have a separate FMR based on the
relationship of rents in that area to the combined rents in the cluster
of FMR areas. In addition, PHAs are advised that in counties where FMRs
are based on the combined rents in the cluster of FMR areas, HUD will
not revise their FMRs unless the grouped survey results show a revised
FMR statistically different from the combined rent level.
Survey samples should preferably be randomly drawn from a complete
list of rental units for the FMR area. If this is not feasible, the
selected sample must be drawn to be statistically representative of the
entire rental housing stock of the FMR area. Surveys must include units
at all rent levels and be representative by structure type (including
single-family, duplex, and other small rental properties), age of
housing unit, and geographic location. The current 5-year ACS data
should be used as a means of verifying if a sample is representative of
the FMR area's rental housing stock.
A PHA or contractor that cannot obtain the recommended number of
sample responses after reasonable efforts should consult with HUD
before abandoning its survey; in such situations, HUD may find it
appropriate to relax normal sample size requirements.
HUD has developed guidance on how to provide data-supported
comments on Small Area FMRs using HUD's special tabulations of the
distribution of gross rents by unit bedroom count for ZIP Code
Tabulation Areas. This guidance is available at https://www.huduser.gov/portal/datasets/fmr.html in the FY 2019 FMR section and
should be used by interested parties in commenting on whether or not
the level of Small Area FMRs are too high or too low (i.e., Small Area
FMRs that are larger than the gross rent necessary to make 40 percent
of the units accessible for an individual ZIP code or that are smaller
than the gross rent necessary to make 40 percent of the units
accessible for a given ZIP code). HUD will post revised Small Area FMRs
after confirming commenters' calculations.
As stated earlier in this notice, HUD is required to use the most
recent data available when calculating FMRs. Therefore, in order to
reevaluate an area's FMR, HUD requires more current rental market data
than the 2016 ACS. HUD encourages a PHA or other interested party that
believes the FMR in their area is incorrect to file a comment even if
they do not have the resources to provide market-wide rental data. In
these instances, HUD will use the comments, should survey funding be
restored, when determining the areas HUD will select for HUD-funded
local area rent surveys.
VII. Information Regarding Public Comments on May 30, 2018 Renewal
Funding Inflation Factor Federal Register Notice
HUD received 10 comments addressing the use of FMR surveys in the
calculation of Renewal Funding Inflation Factors (RFIFs). Most of the
comments received directed HUD to continue using FMR surveys in the
calculation of RFIFs. Consequently, HUD does not have current plans to
discontinue use of FMR surveys in the rent change component of RFIF
calculations. HUD is still determining the exact methods to use when
incorporating surveys in RFIF calculations. Public comments will be
discussed in greater detail, and HUD's responses will be provided, in
the 2019 Renewal Funding Inflation Factor notice. HUD provides the
above information in this notice for the awareness of PHAs that are
considering undertaking a survey to reevaluate their FY 2019 FMRs.
VIII. Environmental Impact
This Notice involves the establishment of FMR 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 available at https://www.huduser.gov/portal/datasets/fmr.html.
Dated: August 27, 2018.
Todd M. Richardson,
General Deputy Assistant Secretary, Office of Policy Development and
Research.
Fair Market Rents for the Housing Choice Voucher Program
Schedule B--General Explanatory Notes
1. Geographic Coverage
a. Metropolitan Areas--Most FMRs are market-wide rent estimates
that are intended to provide housing opportunities throughout the
geographic area in which rental-housing units are in direct
competition. HUD is using the metropolitan core-based statistical areas
(CBSAs), which are made up of one or more counties, as defined by OMB,
with some modifications. HUD is generally assigning separate FMRs to
the component counties of CBSA Micropolitan Areas.
b. Modifications to OMB Definitions--Following OMB guidance, the
estimation procedure for the FY 2019 FMRs incorporates OMB definitions
of metropolitan areas based on the CBSA standards as implemented with
2000 Census data and updated by the 2010 Census in February 28, 2013,
including incremental adjustments through July 15, 2015. The
adjustments made to the 2000 definitions to separate subparts of these
areas where FMRs or median incomes would otherwise change significantly
are continued. To follow HUD's policy of providing FMRs at the smallest
possible area of geography, no counties were added to existing
metropolitan areas due to recent updates in metropolitan area
definitions. All counties added to metropolitan areas by the CBSA will
still be treated as separate counties for FMR calculations; that is,
the rents from a county that is a sub-area will not be used in the
remaining metropolitan sub-area rent determination. All metropolitan
areas that have been subdivided by HUD will use ACS data which conforms
to HUD's area definition if statistically reliable information exists.
If statistically reliable data for a HUD defined area is not available,
HUD uses information from larger encompassing geographies, as described
elsewhere in this notice.
Specific counties and New England towns and cities within each
state in MSAs and HMFAs were not changed by the February 28, 2013 OMB
metropolitan area definitions. These areas are listed in Schedule B,
available online at https://www.huduser.gov/portal/datasets/fmr.html.
2. Unit Bedroom Count Adjustments
Schedule B, available at https://www.huduser.gov/portal/datasets/fmr.html, shows the FMRs for zero-bedroom through four-bedroom units.
The Schedule B addendum shows Small Area FMRs for all metropolitan
areas. FMRs for unit sizes larger than four bedrooms may be calculated
by adding 15 percent to the four-bedroom FMR for each extra bedroom.
For example, the FMR for a five-bedroom unit is 1.15 times the four-
bedroom FMR, and the FMR for a six-bedroom unit is 1.30 times the four-
bedroom FMR. FMRs for single-room-occupancy (SRO) units are 0.75 times
the zero-bedroom FMR.
[[Page 44651]]
3. Arrangement of FMR Areas and Identification of Constituent Parts
a. FMR areas in online Schedule B are listed alphabetically by
metropolitan FMR area and by non-metropolitan county within each state
and are available at https://www.huduser.gov/portal/datasets/fmr.html.
b. Constituent counties (and New England towns and cities) included
in each metropolitan FMR area are listed immediately following the
listings of the FMR dollar amounts. All constituent parts of a
metropolitan FMR area that are in more than one state can be identified
by consulting the listings for each applicable state.
c. Two non-metropolitan counties are listed alphabetically on each
line of the non-metropolitan county listings.
d. The New England towns and cities included in a non-metropolitan
county are listed immediately following the county name.
[FR Doc. 2018-19090 Filed 8-29-18; 4:15 pm]
BILLING CODE 4210-67-P
