Notice of Certain Operating Cost Adjustment Factors for 2019, 59404-59406 [2018-25440]

Download as PDF 59404 Federal Register / Vol. 83, No. 226 / Friday, November 23, 2018 / Notices receive remarks from DHS leadership and other senior Federal officials regarding their report on Catastrophic Power Outages. Additionally, the NIAC will deliberate and vote on their final recommendations for this current report as tasked by the National Security Council. Dated: November 16, 2018. Ginger K. Norris, Designated Federal Officer, National Infrastructure Advisory Council, National Protection and Programs Directorate, Department of Homeland Security. [FR Doc. 2018–25524 Filed 11–21–18; 8:45 am] BILLING CODE 9110–9P–P Agenda I. Opening of Meeting II. Roll Call of Members III. Opening Remarks and Introductions IV. Approval of June 2018 Meeting Minutes V. Public Comment Catastrophic Power Outage Report VI. Catastrophic Power Outage Report Deliberations VII. Discussion of New NIAC Business VIII. Closing Remarks IX. Adjournment Public Participation Meeting Registration Information Due to limited seating, requests to attend in person will be accepted and processed in the order in which they are received. Individuals may register to attend the NIAC meeting by sending an email to NIAC@hq.dhs.gov. For those who cannot attend in person, the meeting’s proceedings will also be available via webcast at www.whitehouse.gov/live. Public Comment amozie on DSK3GDR082PROD with NOTICES1 While this meeting is open to the public, participation in NIAC deliberations are limited to council members. A public comment period will be held during the meeting from approximately 10:30 a.m.–10:45 a.m. EST. Speakers who wish to comment on the draft catastrophic power outage report must register in advance and can do so by emailing NIAC@hq.dhs.gov no later than Wednesday, December 12, 2018, at 5 p.m. EST. Speakers are requested to limit their comments to three minutes. Please note that the public comment period may end before the time indicated, following the last call for comments. Information on Services for Individuals With Disabilities For information on facilities or services for individuals with disabilities or to request special assistance at the meeting, contact NIAC@hq.dhs.gov as soon as possible. VerDate Sep<11>2014 18:33 Nov 21, 2018 Jkt 247001 DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT [Docket No. FR–6128–N–01] Notice of Certain Operating Cost Adjustment Factors for 2019 Office of the Assistant Secretary for Housing—Federal Housing Commissioner, HUD. ACTION: Notice. AGENCY: This notice establishes operating cost adjustment factors (OCAFs) for project-based assistance contracts issued under Section 8 of the United States Housing Act of 1937 and renewed under the Multifamily Assisted Housing Reform and Affordability Act of 1997 (MAHRA) for eligible multifamily housing projects having an anniversary date on or after February 11, 2019. OCAFs are annual factors used to adjust Section 8 rents renewed under section 515 or section 524 of MAHRA. DATES: Applicability Date: February 11, 2019. FOR FURTHER INFORMATION CONTACT: Carissa Janis, Program Analyst, Office of Asset Management and Portfolio Oversight, Department of Housing and Urban Development, 451 7th Street SW, Washington, DC 20410; telephone number 202–402–2487 (this is not a tollfree number). Hearing- or speechimpaired individuals may access this number through TTY by calling the tollfree Federal Relay Service at 800–877– 8339. SUPPLEMENTARY INFORMATION: SUMMARY: I. OCAFs Section 514(e)(2) and section 524(c)(1) of MAHRA (42 U.S.C. 1437f note) require HUD to establish guidelines for the development of OCAFs for rent adjustments. Sections 524(a)(4)(C)(i), 524(b)(1)(A), and 524(b)(3)(A) of MAHRA, all of which prescribe the use of the OCAF in the calculation of renewal rents, contain similar language. HUD has therefore used a single methodology for establishing OCAFs, which vary among states and territories. MAHRA gives HUD broad discretion in setting OCAFs, referring, for example, in sections 524(a)(4)(C)(i), 524(b)(1)(A), 524(b)(3)(A) and 524(c)(1) simply to ‘‘an PO 00000 Frm 00051 Fmt 4703 Sfmt 4703 operating cost adjustment factor established by the Secretary.’’ The sole limitation to this grant of authority is a specific requirement in each of the foregoing provisions that application of an OCAF ‘‘shall not result in a negative adjustment.’’ Contract rents are adjusted by applying the OCAF to that portion of the rent attributable to operating expenses exclusive of debt service. The OCAFs provided in this notice are applicable to eligible projects having a contract anniversary date of February 11, 2019 or after and were calculated using the same method as those published in HUD’s 2018 OCAF notice published on November 2, 2017 (82 FR 50888). Specifically, OCAFs are calculated as the sum of weighted component cost changes for wages, employee benefits, property taxes, insurance, supplies and equipment, fuel oil, electricity, natural gas, and water/ sewer/trash using publicly available indices. The weights used in the OCAF calculations for each of the nine cost component groupings are set using current percentages attributable to each of the nine expense categories. These weights are calculated in the same manner as in the November 2, 2017 notice. Average expense proportions were calculated using three years of audited Annual Financial Statements from projects covered by OCAFs. The expenditure percentages for these nine categories have been found to be very stable over time but using three years of data increases their stability. The nine cost component weights were calculated at the state level, which is the lowest level of geographical aggregation with enough projects to permit statistical analysis. These data were not available for the Western Pacific Islands, so data for Hawaii were used as the best available indicator of OCAFs for these areas. The best current price data sources for the nine cost categories were used in calculating annual change factors. Statelevel data for fuel oil, electricity, and natural gas from Department of Energy surveys are relatively current and continue to be used. Data on changes in employee benefits, insurance, property taxes, and water/sewer/trash costs are only available at the national level. The data sources for the nine cost indicators selected used were as follows: • Labor Costs: First quarter, 2018 Bureau of Labor Statistics (BLS) ECI, Private Industry Wages and Salaries, All Workers (Series ID CIU2020000000000I) at the national level and Private Industry Benefits, All Workers (Series ID CIU2030000000000I) at the national level. E:\FR\FM\23NON1.SGM 23NON1 amozie on DSK3GDR082PROD with NOTICES1 Federal Register / Vol. 83, No. 226 / Friday, November 23, 2018 / Notices • Property Taxes: Census Quarterly Summary of State and Local Government Tax Revenue—Table 1 https://www2.census.gov/govs/qtax/ 20172018/q1t1.xlshttps:// www2.census.gov/govs/qtax/2017/ q1t1.xls. 12-month property taxes are computed as the total of four quarters of tax receipts for the period from April through March. Total 12-month taxes are then divided by the number of occupied housing units to arrive at average 12-month tax per housing unit. The number of occupied housing units is taken from the estimates program at the Bureau of the Census. https:// www.census.gov/housing/hvs/data/ histtab8.xlsx. • Goods, Supplies, Equipment: May 2017 to May 2018 Bureau of Labor Statistics (BLS) Consumer Price Index, All Items Less Food, Energy and Shelter (Series ID CUUR0000SA0L12E) at the national level. • Insurance: May 2017 to May 2018 Bureau of Labor Statistic (BLS) Consumer Price Index, Tenants and Household Insurance Index (Series ID CUUR0000SEHD) at the national level. • Fuel Oil: October 2017–March 2018 U.S. Weekly Heating Oil and Propane Prices report. Average weekly residential heating oil prices in cents per gallon excluding taxes for the period from October 2, 2017 through the week of March 26, 2018 are compared to the average from October 3, 2016 through the week of March 27, 2017. For the States with insufficient fuel oil consumption to have separate estimates, the relevant regional Petroleum Administration for Defense Districts (PADD) change between these two periods is used; if there is no regional PADD estimate, the U.S. change between these two periods is used. https://www.eia.gov/dnav/pet/pet_pri_ wfr_a_EPD2F_prs_dpgal_w.htm. • Electricity: Energy Information Agency, February 2018 ‘‘Electric Power Monthly’’ report, Table 5.6.B. https:// www.eia.gov/electricity/monthly/epm_ table_grapher.cfm?t=epmt_5_06_b. • Natural Gas: Energy Information Agency, Natural Gas, Residential Energy Price, 2016–2017 annual prices in dollars per 1,000 cubic feet at the state level. Due to EIA data quality standards several states were missing data for one or two months in 2017; in these cases, data for these missing months were estimated using data from the surrounding months in 2017 and the relationship between that same month and the surrounding months in 2016. https://www.eia.gov/dnav/ng/ng_pri_ sum_a_EPG0_PRS_DMcf_a.htm. • Water and Sewer: May 2017 to May 2018 Consumer Price Index, All Urban VerDate Sep<11>2014 18:33 Nov 21, 2018 Jkt 247001 Consumers, Water and Sewer and Trash Collection Services (Series ID CUUR0000SEHG) at the national level. The sum of the nine cost component percentage weights equals 100 percent of operating costs for purposes of OCAF calculations. To calculate the OCAFs, state-level cost component weights developed from AFS data are multiplied by the selected inflation factors. For instance, if wages in Virginia comprised 50 percent of total operating cost expenses and increased by 4 percent from 2017 to 2018 the wage increase component of the Virginia OCAF for 2019 would be 2.0 percent (50% * 4%). This 2.0 percent would then be added to the increases for the other eight expense categories to calculate the 2019 OCAF for Virginia. For states where the calculated OCAF is less than zero, the OCAF is floored at zero. The OCAFs for 2019 are included as an Appendix to this Notice. II. MAHRA OCAF Procedures Sections 514 and 515 of MAHRA, as amended, created the Mark-to-Market program to reduce the cost of federal housing assistance, to enhance HUD’s administration of such assistance, and to ensure the continued affordability of units in certain multifamily housing projects. Section 524 of MAHRA authorizes renewal of Section 8 projectbased assistance contracts for projects without restructuring plans under the Mark-to-Market program, including projects that are not eligible for a restructuring plan and those for which the owner does not request such a plan. Renewals must be at rents not exceeding comparable market rents except for certain projects. As an example, for Section 8 Moderate Rehabilitation projects, other than single room occupancy projects (SROs) under the McKinney-Vento Homeless Assistance Act (42 U.S.C. 11301 et seq.), that are eligible for renewal under section 524(b)(3) of MAHRA, the renewal rents are required to be set at the lesser of: (1) The existing rents under the expiring contract, as adjusted by the OCAF; (2) fair market rents (less any amounts allowed for tenant-purchased utilities); or (3) comparable market rents for the market area. III. Findings and Certifications Environmental Impact This notice sets forth rate determinations and related external administrative requirements and procedures that do not constitute a development decision affecting the physical condition of specific project areas or building sites. Accordingly, PO 00000 Frm 00052 Fmt 4703 Sfmt 4703 59405 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). Paperwork Reduction Act This notice does not impact the information collection requirements already submitted to the Office of Management and Budget (OMB) under the Paperwork Reduction Act of 1995 (44 U.S.C. 3501–3520). In accordance with the Paperwork Reduction Act, an agency may not conduct or sponsor, and a person is not required to respond to, a collection of information unless the collection displays a currently valid OMB control number. Catalog of Federal Domestic Assistance Number The Catalog of Federal Domestic Assistance Number for this program is 14.195. Dated: November 14, 2018. Brian D. Montgomery, Assistant Secretary for Housing, Federal Housing Commissioner. Appendix OPERATING COST ADJUSTMENT FACTORS FOR 2019 State Alabama ................................ Alaska ................................... Arizona .................................. Arkansas ............................... California ............................... Colorado ............................... Connecticut ........................... Delaware ............................... District of Columbia .............. Florida ................................... Georgia ................................. Hawaii ................................... Idaho ..................................... Illinois .................................... Indiana .................................. Iowa ...................................... Kansas .................................. Kentucky ............................... Louisiana .............................. Maine .................................... Maryland ............................... Massachusetts ...................... Michigan ............................... Minnesota ............................. Mississippi ............................ Missouri ................................ Montana ................................ Nebraska .............................. Nevada ................................. New Hampshire .................... New Jersey ........................... New Mexico .......................... New York .............................. North Carolina ...................... North Dakota ........................ E:\FR\FM\23NON1.SGM 23NON1 OCAF (%) 2.9 3.5 2.7 2.8 2.9 2.7 3.1 2.6 3.0 2.9 2.9 3.2 2.7 3.1 2.8 3.2 2.6 2.7 2.6 3.0 2.7 2.8 2.7 3.0 3.0 2.6 2.6 3.0 2.7 3.2 3.1 3.2 3.1 2.6 2.8 59406 Federal Register / Vol. 83, No. 226 / Friday, November 23, 2018 / Notices OPERATING COST ADJUSTMENT FACTORS FOR 2019—Continued State OCAF (%) Ohio ...................................... Oklahoma ............................. Oregon .................................. Pacific Islands ....................... Pennsylvania ........................ Puerto Rico ........................... Rhode Island ........................ South Carolina ...................... South Dakota ........................ Tennessee ............................ Texas .................................... Utah ...................................... Vermont ................................ Virgin Islands ........................ Virginia .................................. Washington ........................... West Virginia ........................ Wisconsin ............................. Wyoming ............................... U.S ........................................ 2.7 2.7 2.6 3.2 2.9 2.6 2.5 2.7 2.8 2.7 2.9 2.6 0.9 2.5 2.6 2.7 2.6 3.0 2.7 2.9 [FR Doc. 2018–25440 Filed 11–21–18; 8:45 am] BILLING CODE 4210–67–P DEPARTMENT OF THE INTERIOR Fish and Wildlife Service [FWS–HQ–ES–2018–N145; MO# 300030113; OMB Control Number 1018–0119] Agency Information Collection Activities; Submission to the Office of Management and Budget for Review and Approval; Policy for Evaluation of Conservation Efforts When Making Listing Decisions (PECE) Fish and Wildlife Service, Interior. ACTION: Notice of information collection; request for comment. AGENCY: In accordance with the Paperwork Reduction Act of 1995, we, the U.S. Fish and Wildlife Service, are proposing to renew an information collection with revisions. DATES: Interested persons are invited to submit comments on or before December 24, 2018. ADDRESSES: Send written comments on this information collection request (ICR) to the Office of Management and Budget’s Desk Officer for the Department of the Interior by email at OIRA_Submission@omb.eop.gov; or via facsimile to (202) 395–5806. Please provide a copy of your comments to the Service Information Collection Clearance Officer, U.S. Fish and Wildlife Service, MS: BPHC, 5275 Leesburg Pike, Falls Church, VA 22041– 3803 (mail); or by email to Info_Coll@ fws.gov. Please reference OMB Control amozie on DSK3GDR082PROD with NOTICES1 SUMMARY: VerDate Sep<11>2014 18:33 Nov 21, 2018 Jkt 247001 Number 1018–0119 in the subject line of your comments. FOR FURTHER INFORMATION CONTACT: To request additional information about this ICR, contact Madonna L. Baucum, Service Information Collection Clearance Officer, by email at Info_ Coll@fws.gov, or by telephone at (703) 358–2503. You may also view the ICR at https://www.reginfo.gov/public/do/ PRAMain. In accordance with the Paperwork Reduction Act of 1995, we provide the general public and other Federal agencies with an opportunity to comment on new, proposed, revised, and continuing collections of information. This helps us assess the impact of our information collection requirements and minimize the public’s reporting burden. It also helps the public understand our information collection requirements and provide the requested data in the desired format. A Federal Register notice with a 60day public comment period soliciting comments on this collection of information was published on February 28, 2018 (83 FR 8698). The following comments were received: Comment 1: Letter dated April 30, 2018, from Myles P. Culhane, Assistant General Counsel, Occidental Petroleum Corporation. Received via email on April 30, 2018. Occidental Petroleum Corporation provided comments on whether PECE is necessary to the proper functions of the Service, whether we will use the information in a timely manner, and how to enhance the information being collected. They stated that PECE is very important to encourage voluntary conservation efforts prior to listing decisions such that listing may not be necessary. They offered three suggestions to improve information collection in the context of specific listing decisions: (1) Ensure that we are collecting the right types of information by considering what will be useful in predicting future conservation actions and results, and articulating the factors we think will inform such predictions, (2) Ensure that we have the ability to update our listing decisions up until the last minute regarding current information about conservation efforts, and (3) Ensure that PECE analyses are cumulative and include all qualifying conservation efforts together rather than in isolation. FWS Response to Comment 1: The Service appreciates this comment and does consider the best available SUPPLEMENTARY INFORMATION: PO 00000 Frm 00053 Fmt 4703 Sfmt 4703 scientific and commercial information received through the public comment period, information solicitation, or other means related to conservation efforts when making listing determinations. The Service maintains that in every proposed or final listing decision, we articulate the species’ needs, the threats to the species and its response to those threats, and any actions that may ameliorate or exacerbate those threats. Each particular situation is unique, but in the Service’s final PECE, we articulated the non-exhaustive list of criteria that we would use to evaluate each conservation effort that did not have a track record of implementation or effectiveness. The Service is required to consider best available scientific and commercial information in making listing decisions, including information on conservation efforts that do not have a track record of implementation or effectiveness. The Service evaluates the certainty of implementation and effectiveness by considering the criteria in the PECE, and those efforts that meet the PECE standard of sufficiently certain to be implemented and effective are then evaluated in the status assessment for the species. The Service understands that stakeholders want a transparent and flexible process, and the Service is open to communication and collaboration with these stakeholders which will encourage conservation of species. Comment 2: Letter dated April 27, 2018, from Steve Wright, General Manager, Public Utility District No. 1 of Chelan County, WA. Received via email on May, 7, 2018. Chelan Public Utility District No. 1 commented that it finds PECE useful because it encourages aggregation of information about conservation efforts, which can provide notice to permit applicants and other entities possibly affected by a listing, both of the listing and the efforts. It can also encourage entities to participate in conservation efforts, which can be meaningful for species. It finds that encouraging conservation efforts is consistent with the ESA and benefits species. FWS Response to Comment 2: The Service appreciates the District’s comments about the utility and benefits of PECE. We are again soliciting comments on the proposed ICR that is described below. We are especially interested in public comment addressing the following issues: (1) Is the collection necessary to the proper functions of the Service; (2) will this information be processed and used in a timely manner; (3) is the estimate of burden accurate; (4) how might the Service enhance the quality, utility, and clarity of the E:\FR\FM\23NON1.SGM 23NON1

Agencies

[Federal Register Volume 83, Number 226 (Friday, November 23, 2018)]
[Notices]
[Pages 59404-59406]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-25440]


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DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

[Docket No. FR-6128-N-01]


Notice of Certain Operating Cost Adjustment Factors for 2019

AGENCY: Office of the Assistant Secretary for Housing--Federal Housing 
Commissioner, HUD.

ACTION: Notice.

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

SUMMARY: This notice establishes operating cost adjustment factors 
(OCAFs) for project-based assistance contracts issued under Section 8 
of the United States Housing Act of 1937 and renewed under the 
Multifamily Assisted Housing Reform and Affordability Act of 1997 
(MAHRA) for eligible multifamily housing projects having an anniversary 
date on or after February 11, 2019. OCAFs are annual factors used to 
adjust Section 8 rents renewed under section 515 or section 524 of 
MAHRA.

DATES: Applicability Date: February 11, 2019.

FOR FURTHER INFORMATION CONTACT: Carissa Janis, Program Analyst, Office 
of Asset Management and Portfolio Oversight, Department of Housing and 
Urban Development, 451 7th Street SW, Washington, DC 20410; telephone 
number 202-402-2487 (this is not a toll-free number). Hearing- or 
speech-impaired individuals may access this number through TTY by 
calling the toll-free Federal Relay Service at 800-877-8339.

SUPPLEMENTARY INFORMATION:

I. OCAFs

    Section 514(e)(2) and section 524(c)(1) of MAHRA (42 U.S.C. 1437f 
note) require HUD to establish guidelines for the development of OCAFs 
for rent adjustments. Sections 524(a)(4)(C)(i), 524(b)(1)(A), and 
524(b)(3)(A) of MAHRA, all of which prescribe the use of the OCAF in 
the calculation of renewal rents, contain similar language. HUD has 
therefore used a single methodology for establishing OCAFs, which vary 
among states and territories.
    MAHRA gives HUD broad discretion in setting OCAFs, referring, for 
example, in sections 524(a)(4)(C)(i), 524(b)(1)(A), 524(b)(3)(A) and 
524(c)(1) simply to ``an operating cost adjustment factor established 
by the Secretary.'' The sole limitation to this grant of authority is a 
specific requirement in each of the foregoing provisions that 
application of an OCAF ``shall not result in a negative adjustment.'' 
Contract rents are adjusted by applying the OCAF to that portion of the 
rent attributable to operating expenses exclusive of debt service.
    The OCAFs provided in this notice are applicable to eligible 
projects having a contract anniversary date of February 11, 2019 or 
after and were calculated using the same method as those published in 
HUD's 2018 OCAF notice published on November 2, 2017 (82 FR 50888). 
Specifically, OCAFs are calculated as the sum of weighted component 
cost changes for wages, employee benefits, property taxes, insurance, 
supplies and equipment, fuel oil, electricity, natural gas, and water/
sewer/trash using publicly available indices. The weights used in the 
OCAF calculations for each of the nine cost component groupings are set 
using current percentages attributable to each of the nine expense 
categories. These weights are calculated in the same manner as in the 
November 2, 2017 notice. Average expense proportions were calculated 
using three years of audited Annual Financial Statements from projects 
covered by OCAFs. The expenditure percentages for these nine categories 
have been found to be very stable over time but using three years of 
data increases their stability. The nine cost component weights were 
calculated at the state level, which is the lowest level of 
geographical aggregation with enough projects to permit statistical 
analysis. These data were not available for the Western Pacific 
Islands, so data for Hawaii were used as the best available indicator 
of OCAFs for these areas.
    The best current price data sources for the nine cost categories 
were used in calculating annual change factors. State-level data for 
fuel oil, electricity, and natural gas from Department of Energy 
surveys are relatively current and continue to be used. Data on changes 
in employee benefits, insurance, property taxes, and water/sewer/trash 
costs are only available at the national level. The data sources for 
the nine cost indicators selected used were as follows:
     Labor Costs: First quarter, 2018 Bureau of Labor 
Statistics (BLS) ECI, Private Industry Wages and Salaries, All Workers 
(Series ID CIU2020000000000I) at the national level and Private 
Industry Benefits, All Workers (Series ID CIU2030000000000I) at the 
national level.

[[Page 59405]]

     Property Taxes: Census Quarterly Summary of State and 
Local Government Tax Revenue--Table 1 https://www2.census.gov/govs/qtax/20172018/q1t1.xlshttps://www2.census.gov/govs/qtax/2017/q1t1.xls. 12-
month property taxes are computed as the total of four quarters of tax 
receipts for the period from April through March. Total 12-month taxes 
are then divided by the number of occupied housing units to arrive at 
average 12-month tax per housing unit. The number of occupied housing 
units is taken from the estimates program at the Bureau of the Census. 
https://www.census.gov/housing/hvs/data/histtab8.xlsx.
     Goods, Supplies, Equipment: May 2017 to May 2018 Bureau of 
Labor Statistics (BLS) Consumer Price Index, All Items Less Food, 
Energy and Shelter (Series ID CUUR0000SA0L12E) at the national level.
     Insurance: May 2017 to May 2018 Bureau of Labor Statistic 
(BLS) Consumer Price Index, Tenants and Household Insurance Index 
(Series ID CUUR0000SEHD) at the national level.
     Fuel Oil: October 2017-March 2018 U.S. Weekly Heating Oil 
and Propane Prices report. Average weekly residential heating oil 
prices in cents per gallon excluding taxes for the period from October 
2, 2017 through the week of March 26, 2018 are compared to the average 
from October 3, 2016 through the week of March 27, 2017. For the States 
with insufficient fuel oil consumption to have separate estimates, the 
relevant regional Petroleum Administration for Defense Districts (PADD) 
change between these two periods is used; if there is no regional PADD 
estimate, the U.S. change between these two periods is used. https://www.eia.gov/dnav/pet/pet_pri_wfr_a_EPD2F_prs_dpgal_w.htm.
     Electricity: Energy Information Agency, February 2018 
``Electric Power Monthly'' report, Table 5.6.B. https://www.eia.gov/electricity/monthly/epm_table_grapher.cfm?t=epmt_5_06_b.
     Natural Gas: Energy Information Agency, Natural Gas, 
Residential Energy Price, 2016-2017 annual prices in dollars per 1,000 
cubic feet at the state level. Due to EIA data quality standards 
several states were missing data for one or two months in 2017; in 
these cases, data for these missing months were estimated using data 
from the surrounding months in 2017 and the relationship between that 
same month and the surrounding months in 2016. https://www.eia.gov/dnav/ng/ng_pri_sum_a_EPG0_PRS_DMcf_a.htm.
     Water and Sewer: May 2017 to May 2018 Consumer Price 
Index, All Urban Consumers, Water and Sewer and Trash Collection 
Services (Series ID CUUR0000SEHG) at the national level.
    The sum of the nine cost component percentage weights equals 100 
percent of operating costs for purposes of OCAF calculations. To 
calculate the OCAFs, state-level cost component weights developed from 
AFS data are multiplied by the selected inflation factors. For 
instance, if wages in Virginia comprised 50 percent of total operating 
cost expenses and increased by 4 percent from 2017 to 2018 the wage 
increase component of the Virginia OCAF for 2019 would be 2.0 percent 
(50% * 4%). This 2.0 percent would then be added to the increases for 
the other eight expense categories to calculate the 2019 OCAF for 
Virginia. For states where the calculated OCAF is less than zero, the 
OCAF is floored at zero. The OCAFs for 2019 are included as an Appendix 
to this Notice.

II. MAHRA OCAF Procedures

    Sections 514 and 515 of MAHRA, as amended, created the Mark-to-
Market program to reduce the cost of federal housing assistance, to 
enhance HUD's administration of such assistance, and to ensure the 
continued affordability of units in certain multifamily housing 
projects. Section 524 of MAHRA authorizes renewal of Section 8 project-
based assistance contracts for projects without restructuring plans 
under the Mark-to-Market program, including projects that are not 
eligible for a restructuring plan and those for which the owner does 
not request such a plan. Renewals must be at rents not exceeding 
comparable market rents except for certain projects. As an example, for 
Section 8 Moderate Rehabilitation projects, other than single room 
occupancy projects (SROs) under the McKinney-Vento Homeless Assistance 
Act (42 U.S.C. 11301 et seq.), that are eligible for renewal under 
section 524(b)(3) of MAHRA, the renewal rents are required to be set at 
the lesser of: (1) The existing rents under the expiring contract, as 
adjusted by the OCAF; (2) fair market rents (less any amounts allowed 
for tenant-purchased utilities); or (3) comparable market rents for the 
market area.

III. Findings and Certifications

Environmental Impact

    This notice sets forth rate determinations and related external 
administrative requirements and procedures that 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).

Paperwork Reduction Act

    This notice does not impact the information collection requirements 
already submitted to the Office of Management and Budget (OMB) under 
the Paperwork Reduction Act of 1995 (44 U.S.C. 3501-3520). In 
accordance with the Paperwork Reduction Act, an agency may not conduct 
or sponsor, and a person is not required to respond to, a collection of 
information unless the collection displays a currently valid OMB 
control number.

Catalog of Federal Domestic Assistance Number

    The Catalog of Federal Domestic Assistance Number for this program 
is 14.195.

    Dated: November 14, 2018.
Brian D. Montgomery,
Assistant Secretary for Housing, Federal Housing Commissioner.

Appendix

               Operating Cost Adjustment Factors for 2019
------------------------------------------------------------------------
                          State                              OCAF (%)
------------------------------------------------------------------------
Alabama.................................................             2.9
Alaska..................................................             3.5
Arizona.................................................             2.7
Arkansas................................................             2.8
California..............................................             2.9
Colorado................................................             2.7
Connecticut.............................................             3.1
Delaware................................................             2.6
District of Columbia....................................             3.0
Florida.................................................             2.9
Georgia.................................................             2.9
Hawaii..................................................             3.2
Idaho...................................................             2.7
Illinois................................................             3.1
Indiana.................................................             2.8
Iowa....................................................             3.2
Kansas..................................................             2.6
Kentucky................................................             2.7
Louisiana...............................................             2.6
Maine...................................................             3.0
Maryland................................................             2.7
Massachusetts...........................................             2.8
Michigan................................................             2.7
Minnesota...............................................             3.0
Mississippi.............................................             3.0
Missouri................................................             2.6
Montana.................................................             2.6
Nebraska................................................             3.0
Nevada..................................................             2.7
New Hampshire...........................................             3.2
New Jersey..............................................             3.1
New Mexico..............................................             3.2
New York................................................             3.1
North Carolina..........................................             2.6
North Dakota............................................             2.8

[[Page 59406]]

 
Ohio....................................................             2.7
Oklahoma................................................             2.7
Oregon..................................................             2.6
Pacific Islands.........................................             3.2
Pennsylvania............................................             2.9
Puerto Rico.............................................             2.6
Rhode Island............................................             2.5
South Carolina..........................................             2.7
South Dakota............................................             2.8
Tennessee...............................................             2.7
Texas...................................................             2.9
Utah....................................................             2.6
Vermont.................................................             0.9
Virgin Islands..........................................             2.5
Virginia................................................             2.6
Washington..............................................             2.7
West Virginia...........................................             2.6
Wisconsin...............................................             3.0
Wyoming.................................................             2.7
U.S.....................................................             2.9
------------------------------------------------------------------------

[FR Doc. 2018-25440 Filed 11-21-18; 8:45 am]
BILLING CODE 4210-67-P
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