Notice of Certain Operating Cost Adjustment Factors for 2023, 68513-68516 [2022-24845]

Download as PDF Federal Register / Vol. 87, No. 219 / Tuesday, November 15, 2022 / Notices The information collection is required for Community Disaster Loan (CDL) Program eligibility determinations, CDL management, and compliance with other Federal laws and regulations. The CDL Program is authorized by section 417 of the Robert T. Stafford Disaster Relief and Emergency Assistance Act (Pub. L. 93–288, as amended, 42 U.S.C. 5184) and implementing regulations at 44 CFR, part 206, subpart K. FEMA may make a CDL to any local government which has suffered a substantial loss of tax or other revenues as a result of a major disaster or emergency and which demonstrates a need for Federal financial assistance to perform its governmental functions. The CDL must be justified on the basis of need and be based on the actual and projected expenses, as a result of the disaster, for the fiscal year in which the disaster occurred and the three succeeding fiscal years. FEMA has the authority to cancel repayment of all or part of these CDLs to the extent that a determination is made that revenues of the local government during the three fiscal years following the disaster are insufficient to meet the operating budget of that local government because of disaster related revenue losses and additional unreimbursed disasterrelated municipal operating expenses. FEMA reviewed the forms included in this collection and found that FEMA Form 090–0–4 (Letter of Application) presented difficulties for the local governments. FEMA found a simpler way of fulfilling the regulatory requirement through a template letter which local governments can paste into their letterhead. Therefore, FEMA Form 090–0–4 (Letter of Application) will no longer be part of this collection. SUPPLEMENTARY INFORMATION: lotter on DSK11XQN23PROD with NOTICES1 Collection of Information Title: Application for Community Disaster Loan (CDL) Program. Type of Information Collection: Extension, with minor change, of a currently approved information collection. OMB Number: 1660–0083. FEMA Forms: FEMA Form FF–104– FY–22–223 (formerly 090–0–1), Certification of Eligibility for Community Disaster Loans; FF–104– FY–22–224 (formerly 116–0–1), Promissory Note; FF–104–FY–22–225 (formerly 085–0–1), Local Government Resolution—Collateral Security; FF– 104–FY–22–226 (formerly 112–0–3C), Certifications Regarding Lobbying, Debarment, Suspension and Other Responsibility Matters, and Drug-Free Workplace Requirements; FF–104–FY– VerDate Sep<11>2014 19:16 Nov 14, 2022 Jkt 259001 22–227 (formerly 009–0–15), Application for Loan Cancellation. Abstract: The loan package for the CDL Program provides local governments that have suffered substantial loss of tax or other revenues as a result of a major disaster, the opportunity to obtain financial assistance in order to perform their governmental functions. The loan must be justified on the basis of need and actual expenses. Affected Public: State, local, or Tribal Government. Estimated Number of Respondents: 260. Estimated Number of Responses: 260. Estimated Total Annual Burden Hours: 552. Estimated Total Annual Respondent Cost: $25,800. Estimated Respondents’ Operation and Maintenance Costs: 0. Estimated Respondents’ Capital and Start-Up Costs: 0. Estimated Total Annual Cost to the Federal Government: $1,059,047. Comments Comments may be submitted as indicated in the ADDRESSES caption above. Comments are solicited to (a) evaluate whether the proposed data collection is necessary for the proper performance of the agency, including whether the information shall have practical utility; (b) 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; (c) enhance the quality, utility, and clarity of the information to be collected; and (d) 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. Millicent Brown Wilson, Records Management Branch Chief, Office of the Chief Administrative Officer, Mission Support, Federal Emergency Management Agency, Department of Homeland Security. [FR Doc. 2022–24803 Filed 11–14–22; 8:45 am] BILLING CODE 9111–24–P PO 00000 Frm 00077 Fmt 4703 Sfmt 4703 68513 DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT [Docket No. FR–6360–N–01] Notice of Certain Operating Cost Adjustment Factors for 2023 Office of the Assistant Secretary for Housing—Federal Housing Commissioner, HUD. ACTION: Notice; request for comment. 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, 2023. OCAFs are annual factors used to adjust Section 8 rents renewed under section 515 or section 524 of MAHRA. Through this notice HUD also seeks public input on two proposed technical changes to its OCAF calculation method. DATES: Comment due date: December 15, 2022. Applicability date: February 11, 2023, unless HUD receives comment that would lead to the reconsideration of these proposed changes, as described below. ADDRESSES: HUD invites interested persons to submit comments regarding changes to the OCAF calculation method. Communications must refer to the above docket number and title and should contain the information specified in the ‘‘Request for Public Comments and FMR Reevaluations’’ section. There are two methods for submitting public comments: 1. 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 them 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 SUMMARY: E:\FR\FM\15NON1.SGM 15NON1 68514 Federal Register / Vol. 87, No. 219 / Tuesday, November 15, 2022 / Notices requestors should follow instructions provided on that site to submit comments or reevaluation requests electronically. 2. Submission of Comments by Mail. Members of the public may submit comments or requests for reevaluation by mail to the Regulations Division, Office of General Counsel, Department of Housing and Urban Development, 451 7th Street SW, Room 10276, Washington, DC 20410–0500. Due to security measures at all federal agencies, however, submission of comments by standard mail often results in delayed delivery. To ensure timely receipt of comments or reevaluation requests, HUD recommends that comments or requests submitted by standard mail be submitted at least two 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. 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. lotter on DSK11XQN23PROD with NOTICES1 No Facsimile Comments or Reevaluation Requests. HUD does not accept facsimile (FAX) comments or requests. FOR FURTHER INFORMATION CONTACT: Jennifer Lavorel, Director, Office of Asset Management and Portfolio Oversight Program Administration Office, Department of Housing and Urban Development, 451 7th Street SW, Washington, DC 20410; telephone number 202–402–2515 (this is not a tollfree number). HUD welcomes and is prepared to receive calls from individuals who are deaf or hard of hearing, as well as individuals with speech and communication disabilities. To learn more about how to make an accessible telephone call, please visit https://www.fcc.gov/consumers/guides/ telecommunications-relay-service-trs. SUPPLEMENTARY INFORMATION: I. Background Section 514(e)(2) and section 524(c)(1) of the Multifamily Assisted Housing Reform and Affordability Act of 1997 (MAHRA) (42 U.S.C. 1437f note), as amended, require HUD to establish guidelines for the development of operating cost adjustment factors (OCAFs) for rent adjustments. Similar language is found in 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. MAHRA gives HUD broad discretion in setting VerDate Sep<11>2014 19:16 Nov 14, 2022 Jkt 259001 OCAFs, referring, for example, in sections 524(a)(4)(C)(i), 524(b)(1)(A), 524(b)(3)(A), and 524(c)(1), to simply ‘‘an operating cost adjustment factor established by the Secretary.’’ HUD uses a single methodology for establishing OCAFs. 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.’’ OCAFs vary among states and territories. Contract rents are adjusted by applying the OCAF for the state or territory in which the subject project is located 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 on or after February 11, 2023. II. Proposed Changes to OCAF Methodology HUD seeks public input on the following proposed technical changes to its OCAF calculation methodology. Vintage of data. To calculate the inflation factor for each of the nine cost components that comprise the OCAF, HUD uses year-over-year data, pulling data as of May of each year. Beginning with the 2024 OCAFs, HUD will begin to pull data in August of each year, to reduce the time lag between when OCAFs are calculated and when they go into effect. Note: To provide for OCAFs that are relatively generous in 2023, given historically high inflation levels, HUD calculated the cost component inflation factor for most of the cost components using a time period that exceeds 1 year. HUD used the most recent available data at the time of calculation for the numerator. For the denominator, HUD used the figure for the time period that was used in the calculation of the 2022 OCAFs. Going forward, HUD will revert to using yearover-year data for each component, subject to data availability. Insurance component data source. To calculate the inflation factor for the insurance component, HUD has used the Bureau of Labor Statistics Consumer Price Index, Tenants and Household Insurance Index. Beginning with the 2023 OCAFs, HUD instead uses the industry data for Direct property and casualty insurers-Commercial multiple peril insurance series from the Bureau of Labor Statistics, Producer Price Index, as it is the best metric for insurance costs for properties of leased rental housing. With respect to these proposed changes to OCAF methodology, HUD will consider all comments submitted not later than 30 days from the date of PO 00000 Frm 00078 Fmt 4703 Sfmt 4703 publication of this notice. Unless HUD receives comment that would lead to the reconsideration of these proposed changes, the changes will become effective on February 11, 2023. If HUD receives adverse comment that leads to reconsideration, HUD will notify the public via a revised notice issued immediately following the close of the comment period. III. OCAF Data Sources OCAFs are calculated as the sum of weighted component cost changes for electricity, employee benefits/employee wages, fuel oil, goods/supplies/ equipment, insurance, natural gas, property taxes, 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. HUD calculates weights 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 stable over time, and using three years of data increases their stability. The nine cost component weights are calculated at the state level, which is the lowest level of geographical aggregation with enough projects to permit statistical analysis. These data are not available for the Western Pacific Islands, so data for Hawaii are used as the best available indicator of OCAFs for these areas. HUD uses the best current price data sources for the nine cost categories in calculating annual change factors. Statelevel data for electricity, fuel oil, and natural gas from Department of Energy surveys are relatively current and continue to be used. Data on changes in employee benefits/employee wages, goods/supplies/equipment, insurance, property taxes, and water/sewer/trash costs are available only at the national level. The data sources used for the selected nine cost indicators are as follows: • Electricity: Energy Information Agency (EIA), May 2022 ‘‘Electric Power Monthly’’ report, Table 5.6.B. HUD compares the estimate for January 2022 through May 2022 to the estimate for January 2020 to December 2020. https:// www.eia.gov/electricity/monthly/epm_ table_grapher.php?t=epmt_5_06_b. • Employee benefits: Bureau of Labor Statistics (BLS) ECI, Private Industry Benefits, All Workers (Series ID CIU2030000000000I), at the national level. HUD compares the second quarter 2022 to the first quarter of 2021. https:// data.bls.gov/timeseries/ CIU2030000000000I. E:\FR\FM\15NON1.SGM 15NON1 lotter on DSK11XQN23PROD with NOTICES1 Federal Register / Vol. 87, No. 219 / Tuesday, November 15, 2022 / Notices • Employee wages: Bureau of Labor Statistics (BLS) ECI, Private Industry Wages and Salaries, All Workers (Series ID CIU2020000000000I), at the national level. HUD compares the second quarter 2022 to the first quarter of 2021. https:// data.bls.gov/timeseries/ CIU2020000000000I. • Fuel Oil: EIA 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 5, 2021, through the week of March 29, 2022, are compared to the average from October 5, 2020, through the week of March 29, 2021. 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. • Goods/Supplies/Equipment: Bureau of Labor Statistics (BLS) Consumer Price Index, All Items Less Food, Energy and Shelter (Series ID CUUR0000SA0L12E) at the national level. HUD compares the July 2022 estimate to the estimate for May 2021. https://data.bls.gov/ timeseries/CUUR0000SA0L12E. • Insurance: Bureau of Labor Statistic (BLS) Producer Price Index, industry data for Direct property and casualty insurers-Commercial multiple peril insurance (Series ID PCU5241265241265) at the national level. HUD compares the estimate for July 2022 to the estimate for May 2021. https://data.bls.gov/timeseries/ PCU5241265241265. • Natural Gas: Energy Information Agency, Natural Gas, Residential Energy Price, monthly prices in dollars per 1,000 cubic feet at the state level. HUD compares the estimate for January 2021 through May 2022 to the estimate for January 2020 through December 2020. Due to EIA data quality standards, several states were missing data for one or two months in 2021 and 2022; in these cases, data for these missing months were estimated using data from the surrounding months in that year and the relationship between that same month and the surrounding months in 2020. https://www.eia.gov/dnav/ng/ng_ pri_sum_a_EPG0_PRS_DMcf_a.htm. • Property Taxes: Census Quarterly Summary of State and Local Government Tax Revenue—Table 1 https://www.census.gov/econ/ currentdata/dbsearch?program= QTAX&startYear=2019&endYear= 2021&categories= QTAXCAT1&dataType=T01&geoLevel= VerDate Sep<11>2014 19:16 Nov 14, 2022 Jkt 259001 US&notAdjusted=1&submit= GET+DATA&releaseScheduleId=. Twelve-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. HUD compares the estimate for April 2021 through March 2022 to the estimate for April 2020 through March 2021.The number of occupied housing units is taken from U.S. Census Bureau’s Current Population Survey/Housing Vacancy Survey (CPS/HVS) housing inventory estimates the estimates, Table 8: https://www.census.gov/housing/hvs/ data/histtab8.xlsx. • Water/Sewer/Trash: Consumer Price Index, All Urban Consumers, Water and Sewer and Trash Collection Services (Series ID CUUR00 00SEHG) at the national level. HUD compares the estimate for July 2022 to the estimate for May 2021. https://data.bls.gov/ timeseries/CUUR0000SEHG. 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 2021 to 2022, the wage increase component of the Virginia OCAF for 2023 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 2023 OCAF for Virginia. For states where the calculated OCAF is less than zero, the OCAF is floored at zero. The OCAFs for 2023 are included as an Appendix to this notice. IV. 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 Code of Federal Regulations 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). V. Paperwork Reduction Act This notice does not impact the information collection requirements already submitted to the Office of Management and Budget (OMB) under PO 00000 Frm 00079 Fmt 4703 Sfmt 4703 68515 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. The OMB control number associated with this collection is 2502–0587. VI. Catalog of Federal Domestic Assistance Number The Catalog of Federal Domestic Assistance Number for this program is 14.195. Julia R. Gordon, Office of the Assistant Secretary for Housing, Federal Housing Administration Commissioner. Appendix Operating Cost Adjustment Factors for 2023 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 .................................... Ohio .................................................. Oklahoma ......................................... Oregon .............................................. Pacific Islands ................................... Pennsylvania .................................... Puerto Rico ....................................... Rhode Island .................................... South Carolina .................................. South Dakota .................................... Tennessee ........................................ Texas ................................................ Utah .................................................. Vermont ............................................ E:\FR\FM\15NON1.SGM 15NON1 5.8 6.0 5.7 5.9 7.1 5.9 6.1 5.8 5.8 6.1 5.6 7.3 5.1 7.3 6.4 5.0 5.5 6.4 5.9 8.3 6.6 6.1 5.5 7.3 6.2 5.2 5.4 5.9 6.2 5.7 5.3 6.0 7.6 5.7 6.0 6.2 4.9 5.6 7.3 5.8 6.3 5.3 5.6 4.8 5.7 5.7 5.6 6.0 68516 Federal Register / Vol. 87, No. 219 / Tuesday, November 15, 2022 / Notices Virgin Islands .................................... Virginia .............................................. Washington ....................................... West Virginia .................................... Wisconsin ......................................... Wyoming ........................................... United States .................................... 5.8 6.0 5.9 6.6 6.6 5.6 6.1 [FR Doc. 2022–24845 Filed 11–14–22; 8:45 am] BILLING CODE 4210–67–P DEPARTMENT OF THE INTERIOR Bureau of Land Management [L13100000.PP0000.LLHQ310000.234; OMB Control No. 1004–0209] Agency Information Collection Activities; Measurement of Oil Bureau of Land Management, Interior. ACTION: Notice of information collection; request for comment. AGENCY: In accordance with the Paperwork Reduction Act of 1995, the Bureau of Land Management (BLM) proposes to renew an information collection. DATES: Interested persons are invited to submit comments on or before January 16, 2023. ADDRESSES: Send your written comments on this information collection request (ICR) by mail to Darrin King, Information Collection Clearance Officer, U.S. Department of the Interior, Bureau of Land Management, Attention PRA Office, 440 W 200 S #500, Salt Lake City, UT 84101; or by email to BLM_HQ_PRA_ Comments@blm.gov. Please reference Office of Management and Budget (OMB) Control Number 1004–0209 in the subject line of your comments. Please note that the electronic submission of comments is recommended. FOR FURTHER INFORMATION CONTACT: To request additional information about this ICR, contact Jennifer Spencer by email at j35spenc@blm.gov, or by telephone at (307) 775–6261. Individuals in the United States who are deaf, deafblind, hard of hearing, or have a speech disability may dial 711 (TTY, TDD, or TeleBraille) to access telecommunications relay services. Individuals outside the United States should use the relay services offered within their country to make international calls to the point-ofcontact in the United States. You may also view the ICR at https:// www.reginfo.gov/public/do/PRAMain. SUPPLEMENTARY INFORMATION: In accordance with the Paperwork lotter on DSK11XQN23PROD with NOTICES1 SUMMARY: VerDate Sep<11>2014 19:16 Nov 14, 2022 Jkt 259001 Reduction Act of 1995 (PRA, 44 U.S.C. 3501 et seq.) and 5 CFR 1320.8(d)(1), all information collections require approval under the PRA. We may not conduct or sponsor, and you are not required to respond to a collection of information unless it displays a currently valid OMB control number. As part of our continuing effort to reduce paperwork and respondent burdens, we invite the public and other Federal agencies 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. We are especially interested in public comment addressing the following: (1) Whether the 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 our estimate of the burden for this collection of information, including the validity of the methodology and assumptions used; (3) Ways to enhance the quality, utility, and clarity of the information to be collected; and (4) How the agency might minimize the burden of the collection of information on those who are to respond, including the use of appropriate automated, electronic, mechanical, or other technological collection techniques or other forms of information technology, e.g., permitting electronic submission of response. Comments that you submit in response to this notice are a matter of public record. We will include or summarize each comment in our request to OMB to approve this ICR. Before including your address, phone number, email address, or other personal identifying information in your comment, you should be aware that your entire comment—including your personal identifying information—may be made publicly available at any time. While you can ask us in your comment to withhold your personal identifying information from public review, we cannot guarantee that we will be able to do so. Abstract: This collection of information enables the BLM to ensure compliance with standards for the measurement of oil produced from Federal and Indian (except Osage Tribe) leases and compliance with pertinent statutes. This OMB Control Number is currently scheduled to expire on April PO 00000 Frm 00080 Fmt 4703 Sfmt 4703 30, 2023. The BLM plans to request that OMB renew this OMB Control Number for an additional three years. Title of Collection: Measurement of Oil (43 CFR Subpart 3174). OMB Control Number: 1004–0209. Form Numbers: None. Type of Review: Extension of a currently approved collection. Respondents/Affected Public: Businesses that participate in the production of oil from Federal and Indian (except Osage Tribe) leases. Total Estimated Number of Annual Respondents: 11,742. Total Estimated Number of Annual Responses: 11,742. Estimated Completion Time per Response: Varies from 6 minutes to 80 hours, depending on activity. Total Estimated Number of Annual Burden Hours: 5,884. Respondent’s Obligation: Required to obtain or retain a benefit. Frequency of Collection: On occasion for all except the following information collection one-time activities pertaining to measurement equipment in use for the measurement of Federal or Indian fluid minerals: • Documentation of Testing for Approval of a Coriolis Meter; • Request to Use Alternate Oil Measurement System; and • Testing of Alternate Oil Measurement System. Total Estimated Annual Nonhour Burden Cost: $5,580,305. An agency may not conduct or sponsor and, notwithstanding any other provision of law, a person is not required to respond to a collection of information unless it displays a currently valid OMB control number. The authority for this action is the Paperwork Reduction Act of 1995 (44 U.S.C. 3501 et seq.). Darrin A. King, Information Collection Clearance Officer. [FR Doc. 2022–24854 Filed 11–14–22; 8:45 am] BILLING CODE 4310–84–P DEPARTMENT OF THE INTERIOR Bureau of Land Management [L13100000.PP0000.LLHQ310000.234; OMB Control No. 1004–0210] Agency Information Collection Activities; Measurement of Gas Bureau of Land Management, Interior. ACTION: Notice of Information Collection; request for comment. AGENCY: In accordance with the Paperwork Reduction Act of 1995, the SUMMARY: E:\FR\FM\15NON1.SGM 15NON1

Agencies

[Federal Register Volume 87, Number 219 (Tuesday, November 15, 2022)]
[Notices]
[Pages 68513-68516]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2022-24845]


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DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

[Docket No. FR-6360-N-01]


Notice of Certain Operating Cost Adjustment Factors for 2023

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

ACTION: Notice; request for comment.

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

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, 2023. OCAFs are annual factors used to 
adjust Section 8 rents renewed under section 515 or section 524 of 
MAHRA. Through this notice HUD also seeks public input on two proposed 
technical changes to its OCAF calculation method.

DATES: 
    Comment due date: December 15, 2022.
    Applicability date: February 11, 2023, unless HUD receives comment 
that would lead to the reconsideration of these proposed changes, as 
described below.

ADDRESSES: HUD invites interested persons to submit comments regarding 
changes to the OCAF calculation method. Communications must refer to 
the above docket number and title and should contain the information 
specified in the ``Request for Public Comments and FMR Reevaluations'' 
section. There are two methods for submitting public comments:
    1. 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 them 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

[[Page 68514]]

requestors should follow instructions provided on that site to submit 
comments or reevaluation requests electronically.
    2. Submission of Comments by Mail. Members of the public may submit 
comments or requests for reevaluation by mail to the Regulations 
Division, Office of General Counsel, Department of Housing and Urban 
Development, 451 7th Street SW, Room 10276, Washington, DC 20410-0500. 
Due to security measures at all federal agencies, however, submission 
of comments by standard mail often results in delayed delivery. To 
ensure timely receipt of comments or reevaluation requests, HUD 
recommends that comments or requests submitted by standard mail be 
submitted at least two 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.

    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. HUD does not accept 
facsimile (FAX) comments or requests.

FOR FURTHER INFORMATION CONTACT: Jennifer Lavorel, Director, Office of 
Asset Management and Portfolio Oversight Program Administration Office, 
Department of Housing and Urban Development, 451 7th Street SW, 
Washington, DC 20410; telephone number 202-402-2515 (this is not a 
toll-free number). HUD welcomes and is prepared to receive calls from 
individuals who are deaf or hard of hearing, as well as individuals 
with speech and communication disabilities. To learn more about how to 
make an accessible telephone call, please visit https://www.fcc.gov/consumers/guides/telecommunications-relay-service-trs.

SUPPLEMENTARY INFORMATION:

I. Background

    Section 514(e)(2) and section 524(c)(1) of the Multifamily Assisted 
Housing Reform and Affordability Act of 1997 (MAHRA) (42 U.S.C. 1437f 
note), as amended, require HUD to establish guidelines for the 
development of operating cost adjustment factors (OCAFs) for rent 
adjustments. Similar language is found in 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. 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), to simply 
``an operating cost adjustment factor established by the Secretary.'' 
HUD uses a single methodology for establishing OCAFs. 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.''
    OCAFs vary among states and territories. Contract rents are 
adjusted by applying the OCAF for the state or territory in which the 
subject project is located 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 on or after February 11, 
2023.

II. Proposed Changes to OCAF Methodology

    HUD seeks public input on the following proposed technical changes 
to its OCAF calculation methodology.
    Vintage of data. To calculate the inflation factor for each of the 
nine cost components that comprise the OCAF, HUD uses year-over-year 
data, pulling data as of May of each year. Beginning with the 2024 
OCAFs, HUD will begin to pull data in August of each year, to reduce 
the time lag between when OCAFs are calculated and when they go into 
effect.

    Note: To provide for OCAFs that are relatively generous in 2023, 
given historically high inflation levels, HUD calculated the cost 
component inflation factor for most of the cost components using a 
time period that exceeds 1 year. HUD used the most recent available 
data at the time of calculation for the numerator. For the 
denominator, HUD used the figure for the time period that was used 
in the calculation of the 2022 OCAFs. Going forward, HUD will revert 
to using year-over-year data for each component, subject to data 
availability.

    Insurance component data source. To calculate the inflation factor 
for the insurance component, HUD has used the Bureau of Labor 
Statistics Consumer Price Index, Tenants and Household Insurance Index. 
Beginning with the 2023 OCAFs, HUD instead uses the industry data for 
Direct property and casualty insurers-Commercial multiple peril 
insurance series from the Bureau of Labor Statistics, Producer Price 
Index, as it is the best metric for insurance costs for properties of 
leased rental housing.
    With respect to these proposed changes to OCAF methodology, HUD 
will consider all comments submitted not later than 30 days from the 
date of publication of this notice. Unless HUD receives comment that 
would lead to the reconsideration of these proposed changes, the 
changes will become effective on February 11, 2023. If HUD receives 
adverse comment that leads to reconsideration, HUD will notify the 
public via a revised notice issued immediately following the close of 
the comment period.

III. OCAF Data Sources

    OCAFs are calculated as the sum of weighted component cost changes 
for electricity, employee benefits/employee wages, fuel oil, goods/
supplies/equipment, insurance, natural gas, property taxes, 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. HUD calculates weights 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 stable over 
time, and using three years of data increases their stability. The nine 
cost component weights are calculated at the state level, which is the 
lowest level of geographical aggregation with enough projects to permit 
statistical analysis. These data are not available for the Western 
Pacific Islands, so data for Hawaii are used as the best available 
indicator of OCAFs for these areas.
    HUD uses the best current price data sources for the nine cost 
categories in calculating annual change factors. State-level data for 
electricity, fuel oil, and natural gas from Department of Energy 
surveys are relatively current and continue to be used. Data on changes 
in employee benefits/employee wages, goods/supplies/equipment, 
insurance, property taxes, and water/sewer/trash costs are available 
only at the national level.
    The data sources used for the selected nine cost indicators are as 
follows:
     Electricity: Energy Information Agency (EIA), May 2022 
``Electric Power Monthly'' report, Table 5.6.B. HUD compares the 
estimate for January 2022 through May 2022 to the estimate for January 
2020 to December 2020. https://www.eia.gov/electricity/monthly/epm_table_grapher.php?t=epmt_5_06_b.
     Employee benefits: Bureau of Labor Statistics (BLS) ECI, 
Private Industry Benefits, All Workers (Series ID CIU2030000000000I), 
at the national level. HUD compares the second quarter 2022 to the 
first quarter of 2021. https://data.bls.gov/timeseries/CIU2030000000000I.

[[Page 68515]]

     Employee wages: Bureau of Labor Statistics (BLS) ECI, 
Private Industry Wages and Salaries, All Workers (Series ID 
CIU2020000000000I), at the national level. HUD compares the second 
quarter 2022 to the first quarter of 2021. https://data.bls.gov/timeseries/CIU2020000000000I.
     Fuel Oil: EIA 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 5, 2021, through the 
week of March 29, 2022, are compared to the average from October 5, 
2020, through the week of March 29, 2021. 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.
     Goods/Supplies/Equipment: Bureau of Labor Statistics (BLS) 
Consumer Price Index, All Items Less Food, Energy and Shelter (Series 
ID CUUR0000SA0L12E) at the national level. HUD compares the July 2022 
estimate to the estimate for May 2021. https://data.bls.gov/timeseries/CUUR0000SA0L12E.
     Insurance: Bureau of Labor Statistic (BLS) Producer Price 
Index, industry data for Direct property and casualty insurers-
Commercial multiple peril insurance (Series ID PCU5241265241265) at the 
national level. HUD compares the estimate for July 2022 to the estimate 
for May 2021. https://data.bls.gov/timeseries/PCU5241265241265.
     Natural Gas: Energy Information Agency, Natural Gas, 
Residential Energy Price, monthly prices in dollars per 1,000 cubic 
feet at the state level. HUD compares the estimate for January 2021 
through May 2022 to the estimate for January 2020 through December 
2020. Due to EIA data quality standards, several states were missing 
data for one or two months in 2021 and 2022; in these cases, data for 
these missing months were estimated using data from the surrounding 
months in that year and the relationship between that same month and 
the surrounding months in 2020. https://www.eia.gov/dnav/ng/ng_pri_sum_a_EPG0_PRS_DMcf_a.htm.
     Property Taxes: Census Quarterly Summary of State and 
Local Government Tax Revenue--Table 1 https://www.census.gov/econ/currentdata/dbsearch?program=QTAX&startYear=2019&endYear=2021&categories=QTAXCAT1&dataType=T01&geoLevel=US¬Adjusted=1&submit=GET+DATA&releaseScheduleId=.
 Twelve-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. HUD compares the 
estimate for April 2021 through March 2022 to the estimate for April 
2020 through March 2021.The number of occupied housing units is taken 
from U.S. Census Bureau's Current Population Survey/Housing Vacancy 
Survey (CPS/HVS) housing inventory estimates the estimates, Table 8: 
https://www.census.gov/housing/hvs/data/histtab8.xlsx.
     Water/Sewer/Trash: Consumer Price Index, All Urban 
Consumers, Water and Sewer and Trash Collection Services (Series ID 
CUUR00 00SEHG) at the national level. HUD compares the estimate for 
July 2022 to the estimate for May 2021. https://data.bls.gov/timeseries/CUUR0000SEHG.
    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 2021 to 2022, the wage 
increase component of the Virginia OCAF for 2023 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 2023 OCAF for 
Virginia. For states where the calculated OCAF is less than zero, the 
OCAF is floored at zero. The OCAFs for 2023 are included as an Appendix 
to this notice.

IV. 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 Code of Federal 
Regulations 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).

V. 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. The OMB control number associated with this collection 
is 2502-0587.

VI. Catalog of Federal Domestic Assistance Number

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

Julia R. Gordon,
Office of the Assistant Secretary for Housing, Federal Housing 
Administration Commissioner.

Appendix

Operating Cost Adjustment Factors for 2023

------------------------------------------------------------------------
 
------------------------------------------------------------------------
Alabama........................................................      5.8
Alaska.........................................................      6.0
Arizona........................................................      5.7
Arkansas.......................................................      5.9
California.....................................................      7.1
Colorado.......................................................      5.9
Connecticut....................................................      6.1
Delaware.......................................................      5.8
District of Columbia...........................................      5.8
Florida........................................................      6.1
Georgia........................................................      5.6
Hawaii.........................................................      7.3
Idaho..........................................................      5.1
Illinois.......................................................      7.3
Indiana........................................................      6.4
Iowa...........................................................      5.0
Kansas.........................................................      5.5
Kentucky.......................................................      6.4
Louisiana......................................................      5.9
Maine..........................................................      8.3
Maryland.......................................................      6.6
Massachusetts..................................................      6.1
Michigan.......................................................      5.5
Minnesota......................................................      7.3
Mississippi....................................................      6.2
Missouri.......................................................      5.2
Montana........................................................      5.4
Nebraska.......................................................      5.9
Nevada.........................................................      6.2
New Hampshire..................................................      5.7
New Jersey.....................................................      5.3
New Mexico.....................................................      6.0
New York.......................................................      7.6
North Carolina.................................................      5.7
North Dakota...................................................      6.0
Ohio...........................................................      6.2
Oklahoma.......................................................      4.9
Oregon.........................................................      5.6
Pacific Islands................................................      7.3
Pennsylvania...................................................      5.8
Puerto Rico....................................................      6.3
Rhode Island...................................................      5.3
South Carolina.................................................      5.6
South Dakota...................................................      4.8
Tennessee......................................................      5.7
Texas..........................................................      5.7
Utah...........................................................      5.6
Vermont........................................................      6.0

[[Page 68516]]

 
Virgin Islands.................................................      5.8
Virginia.......................................................      6.0
Washington.....................................................      5.9
West Virginia..................................................      6.6
Wisconsin......................................................      6.6
Wyoming........................................................      5.6
United States..................................................      6.1
------------------------------------------------------------------------

[FR Doc. 2022-24845 Filed 11-14-22; 8:45 am]
BILLING CODE 4210-67-P
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