Changes to the Methodology Used for Calculating Section 8 Income Limits Under the United States Housing Act of 1937, 1583-1586 [2024-00279]
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Federal Register / Vol. 89, No. 7 / Wednesday, January 10, 2024 / Notices
services (for students, parents, and
school staff), trauma-informed practices
(for school staff), respect for diversity
(for school staff), racial climate (for
students). The STCSS, SSCSS, and PCC
will inform the Systems Change Study.
D SIRF: The SIRF is a web-based form
that gathers existing data detailing each
how youth in need of mental health,
substance use, or trauma-specific
support services were identified because
of an AWARE or TISS program, whether
and to which services youth were
referred, and resulting services received.
Establishing identification and referral
systems, including coordination with
support service providers equipped to
meet the needs of youth, is a core
component of AWARE and TISS grant
requirements. The SIRF will be
completed by grantee program staff for
up to 100 youth annually per grantee as
part of a record review for each youth
identified and referred to support
services. Information about the initial
identification, including the location
and pathway to identification (e.g.,
individual, screening tool, staff role), is
obtained, along with information about
referrals and support services received
following identification. The form also
includes deidentified demographic
information about the youth receiving
the identification, referral, and followup care. SIRF data can be extracted from
case records of school-based care
coordinators or mental health providers,
or other existing data sources, including
any school staff, support service
provider, and family members who
make a mental health, substance use, or
trauma-related identification and
referral. No personal identifiers are
requested on the SIRF. SIRF data will
inform the Identification and Referral
Study and Behavioral Health Equity
Cross-Study Analysis.
The estimated response burden to
collect this information associated with
the AWARE–TISS Cross-Site Evaluation
is as follows annualized over the
requested 3-year clearance period is
presented below. Annual Burden
(hours) and Total Cost ($) are rounded
to the nearest whole number.
TOTAL AND ANNUALIZED AVERAGES: RESPONDENTS, RESPONSES, AND HOURS
Instrument
Type of
respondent
Number of
respondents
IS ..................................................
IS ..................................................
IKII ................................................
IKII ................................................
IKII ................................................
YFFG–Y ........................................
YFGG–F .......................................
CPS ..............................................
CPS ..............................................
CPS ..............................................
TSF ...............................................
PFF ...............................................
APPTS ..........................................
TPPTS ..........................................
WFS ..............................................
PCSS ............................................
STCSS ..........................................
SSCSS .........................................
SSCSS .........................................
SIRF .............................................
Total ......................................
Project Coordinator ......................
Program Staff ...............................
Project Coordinator ......................
Mental Health Provider ................
School Administrator ....................
Youth ............................................
Parent of Youth ............................
Project Coordinator ......................
Program Staff ...............................
School Administrator ....................
Program Staff ...............................
Program Trainee ..........................
Program Trainee ..........................
Program Trainee ..........................
Program Trainee ..........................
Parent of Youth ............................
Youth ............................................
School Staff ..................................
School Administrator ....................
Program Staff ...............................
......................................................
143
15
94
141
47
79
79
143
47
47
47
2,775
4,000
750
2,391
282
282
282
188
47
11,879
Responses
per
respondent
Total
number of
responses
1
1
1
1
1
1
1
1
1
1
10
1
2
2
2
1
1
1
1
100
....................
143
15
94
141
47
79
79
143
47
47
470
2,775
8,000
1,500
4,782
282
282
282
188
4,700
24,096
Burden per
response
(hours)
0.5
0.5
1
1
1
1.5
1.5
0.25
0.25
0.25
0.15
0.15
0.25
0.25
0.25
0.4
0.4
0.5
0.5
0.5
....................
Annual
burden
(hours)
72
8
94
141
47
119
119
36
12
12
71
416
2,000
375
1,196
113
113
141
94
2,350
7,529
Hourly
wage rate
($)
1 $35.52
2 21.71
35.52
3 69.39
4 54.21
5 7.25
7.25
35.52
21.71
54.21
21.71
6 26.81
26.81
26.81
26.81
7.25
7.25
7 30.20
54.21
21.71
..................
Total
cost
($)
$2,557
174
3,339
9,784
2,548
863
863
1,279
261
651
1,541
11,153
53,620
10,054
32,065
819
819
4,258
5,096
51,019
192,763
1 BLS OES May 2022 National Industry-Specific Occupation Employment and Wage Estimates average annual salary for Community and Social Service Specialists, All Other (code 21–1099); https://www.bls.gov/oes/current/oes_nat.htm#21-0000.
2 BLS OES May 2022 National Industry-Specific Occupation Employment and Wage Estimates average annual salary for Community and Social Service Assistants
(code 21–1093); https://www.bls.gov/oes/current/oes_nat.htm#21-0000.
3 BLS OES May 2022 National Industry-Specific Occupation Employment and Wage Estimates average annual salary for Healthcare Diagnosing or Treating Practitioners (code 29–1000); https://www.bls.gov/oes/current/naics5_541720.htm#29-0000.
4 BLS OES May 2022 National Industry-Specific Occupation Employment and Wage Estimates average annual salary for Educational Administrators, All Other
(code 11–9039); https://www.bls.gov/oes/current/naics5_541720.htm#11-0000.
5 https://www.usa.gov/minimum-wage.
6 BLS OES May 2022 National Industry-Specific Occupation Employment and Wage Estimates average annual salary for Community and Social Service Occupations (code 21–0000); https://www.bls.gov/oes/current/oes_nat.htm#21-0000.
7 BLS OES May 2022 National Industry-Specific Occupation Employment and Wage Estimates average annual salary for Educational, Guidance, and Career Counselors and Advisors (code 21–2012); https://www.bls.gov/oes/current/naics5_541720.htm#21-0000.
Send comments to Carlos Graham,
SAMHSA Reports Clearance Officer at
samhsapra@samhsa.hhs.gov. Written
comments should be received by March
11, 2024.
lotter on DSK11XQN23PROD with NOTICES1
Alicia Broadus,
Public Health Advisor.
[FR Doc. 2024–00303 Filed 1–9–24; 8:45 am]
DEPARTMENT OF HOUSING AND
URBAN DEVELOPMENT
[Docket No. FR–6436–N–01]
Changes to the Methodology Used for
Calculating Section 8 Income Limits
Under the United States Housing Act
of 1937
Office of the Assistant
Secretary for Policy Development and
Research, HUD.
ACTION: Notice.
AGENCY:
BILLING CODE 4162–20–P
The United States Housing
Act of 1937 provides for assisted
SUMMARY:
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housing for ‘‘low-income families’’ and
‘‘very low-income families.’’ These
designations are defined as percentages
of area median family income and are
known as income limits. Since FY 2010,
HUD has limited the increase from year
to year in its income limits as the higher
of five percent or twice the percentage
change in national median family
income. This notice adds an express
stipulation that the annual income limit
increase may never exceed ten percent.
HUD further clarifies the definition of
national median family income for
purposes of setting income limits.
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DATES:
Federal Register / Vol. 89, No. 7 / Wednesday, January 10, 2024 / Notices
Comment Due Date: February 8,
2024.
HUD invites interested
persons to submit comments on this
notice. Communications must refer to
the above docket number and title.
There are two methods for submitting
public comments.
1. Submission of Comments by Mail.
Comments 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 20410–0500. Due to
security measures at all Federal
agencies, however, submission of
comments by mail often results in
delayed delivery. To ensure timely
receipt of comments, HUD recommends
that comments submitted by mail be
submitted at least two weeks in advance
of the public comment deadline.
2. Electronic Submission of
Comments. Interested persons may
submit comments electronically through
the Federal eRulemaking Portal at
https://www.regulations.gov. HUD
strongly encourages commenters to
submit comments electronically.
Electronic submission of comments
allows the commenter maximum time to
prepare and submit a comment, ensures
timely receipt by HUD, and enables
HUD to make them immediately
available to the public. Comments
submitted electronically through the
https://www.regulations.gov website can
be viewed by other commenters and
interested members of the public.
Commenters should follow instructions
provided on that site to submit
comments electronically.
Note: To receive consideration as
public comments, comments 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. Facsimile
(FAX) comments are not acceptable.
Public Inspection of Public
Comments. All properly submitted
comments 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 must be scheduled by calling
the Regulations Division at (202) 708–
3055 (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 or
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ADDRESSES:
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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.
Copies of all comments submitted are
available for inspection and
downloading at https://
www.regulations.gov.
FOR FURTHER INFORMATION CONTACT:
Questions on this notice may be
addressed to Adam Bibler, Director,
Program Parameters and Research
Division, Office of Economic Affairs,
Office of Policy Development and
Research, HUD Headquarters, 451 7th
Street SW, Room 8208, Washington, DC
20410, telephone number (202) 402–
6057; or via email at pprd@hud.gov.
HUD welcomes and is prepared to
receive calls from individuals who are
deaf or hard of hearing, as well as
individuals with speech or
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.
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 from https://
www.federalregister.gov.
SUPPLEMENTARY INFORMATION:
I. Background
The United States Housing Act of
1937 (the 1937 Act) provides for
assisted housing for ‘‘low-income
families’’ and ‘‘very low-income
families.’’ Section 3(b)(2) of the 1937
Act defines ‘‘low-income families’’ and
‘‘very low-income families’’ as families
whose incomes are below 80 percent
and 50 percent, respectively, of the area
median family income, with
adjustments for family size. These
income limits are referred to as ‘‘Section
8 income limits’’ because of the
historical and statutory links with that
program, although the same income
limits are also used as eligibility criteria
for several other federal programs. The
1937 Act specifies conditions under
which Section 8 income limits are to be
adjusted either on a designated area
basis or because of family incomes or
housing-cost-to-income relationships
that are unusually high or low.1 Section
8 income limits use the same area
definitions as Section 8 Fair Market
Rent (FMR) area definitions, which in
turn are based on Office of Management
1 The
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1937 Act is codified at 42 U.S.C. 1437a.
Frm 00076
Fmt 4703
Sfmt 4703
and Budget (OMB) metropolitan
statistical area definitions.
HUD issues updated area median
family income estimates and Section 8
income limits annually. Since Fiscal
Year (FY) 2010, HUD has limited the
amount that the income limit for an area
could increase or decrease.2 Prior to FY
2010, income limits could not decrease
at all and there was no limitation on
annual increases. Under the current
methodology, HUD does not allow
income limits to decrease by more than
5 percent from the prior year’s level and
does not allow income limits to increase
by more than the higher of 5 percent or
twice the change in the national median
family income.
There are several reasons for these
limits on increases and decreases. First,
HUD’s calculation of area median family
income estimates is based on survey
data from the Census Bureau’s
American Community Survey (ACS).
Survey estimates of income are subject
to measurement error and may fluctuate
from year to year even when the true
median income for a given area is
unchanged. The limits on increases and
decreases ensure that outlier estimates
of area median family income changes
do not cause undue administrative
burden or negatively impact program
participants through wildly fluctuating
income limit levels.
Second, several programs, most
notably the Low-Income Housing Tax
Credit (LIHTC), use Section 8 income
limits to determine eligibility and rent
levels for low-income households. By
limiting decreases in income limits to
no more than 5 percent, HUD helps
ensure the financial viability of
affordable housing properties.3 By
limiting increases in income limits,
HUD decreases the burden on lowincome households who may face large
rent increases resulting from higher
income limits.
II. Determination of the Limit (Cap) on
Annual Income Limit Increases
This notice announces a change to the
FY 2010 criteria for determining the
maximum possible increase in income
limits. For FY 2024 income limits and
thereafter, HUD intends to set the
maximum possible increase in income
limits at the higher of five percent or
2 Final Notice on Ending the ‘‘Hold Harmless’’
Policy in Calculating Section 8 Income Limits
Under the United States Housing Act of 1937, 75
FR 27564 (May 17, 2010).
3 Effective income limits for properties financed
with Low Income Housing Tax Credits may not
decrease once the properties are placed in service.
However, the viability of future properties and
properties under development may suffer if the
income limit decreases before the property is placed
in service.
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Federal Register / Vol. 89, No. 7 / Wednesday, January 10, 2024 / Notices
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twice the change in national median
family income, with an absolute cap of
ten percent. HUD believes that this
adjustment to the current methodology
will align the cap rule with its intended
purpose in high income-growth periods.
In such periods, doubling the year-toyear change in national median family
income produces a cap that is
significantly higher than the upper
range of income growth experienced by
areas while limiting the possibility of
overly burdensome rent increases for
LIHTC tenants.
Additionally, HUD is formally
establishing the definition of ‘‘national
median family income’’ used in the
calculation of the cap in income limit
increases. From FY 2010 to FY 2014
HUD used an estimate of national
median family income based on the
ACS estimate of national family income
adjusted in part with an inflation
adjustment and in part on historical
trends in national median family
income. From FY 2015 to FY 2021 HUD
used estimates of ACS national median
income adjusted with actual and
forecast inflation alone. For FY 2022
and FY 2023, HUD used unadjusted
estimates of national median family
income from the ACS.
For FY 2024 and thereafter, HUD
intends to continue calculating the cap
on income limit increases using the
most recent unadjusted estimates of
median family income provided by the
Census Bureau via the ACS. Therefore,
for FY 2024 income limits, the cap
would be based on the change in
national median family income from
ACS 2021 to ACS 2022 (see the
discussion below regarding HUD’s
income limit release schedule). By
continuing to remove inflation
adjustments from its cap calculation,
HUD is keeping the calculation in line
with its purpose of capturing trends in
median family income data addressing
survey volatility rather than volatility
introduced by accelerating or
decelerating inflation.
III. ACS Basis for Median Family
Incomes and Income Limits Release
Schedule
HUD released FY 2023 income limits
on May 15, 2023. HUD would ordinarily
have based the 2023 income limits on
ACS 2020 data. However, the Census
Bureau did not release normal ACS
2020 one-year data as a result of
difficulties with the ACS data collection
during the COVID–19 pandemic.
Therefore, HUD elected to ‘‘skip’’ 2020
and instead base the FY 2023 income
limits on ACS 2021 data. HUD intends
to preserve this two-year gap between
the vintage of the ACS data and the
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fiscal year for which the income limits
are published. FY 2024 income limits
will therefore be based on ACS 2022
data. An exception to this practice may
occur in years in which the ACS
implements new metropolitan statistical
area definitions that HUD has not yet
captured in its Fair Market Rent
calculations. HUD believes it can
implement this two-year gap and still
release income limits on or around
April 1 of each year.
IV. Request for Comments
While HUD invites comments on any
aspect of this notice, HUD is
particularly interested in receiving
comments in response to the following
specific questions:
Question for comment #1: Is a cap of
ten percent appropriate for HUD’s
income limit calculation methodology?
If not, is there an alternative cap that
would be more appropriate? Would
such a cap harm planned or in
development LIHTC-financed properties
(i.e., do such properties assume rent
growth in excess of 10 percent)?
Question for comment #2: In updating
its income limits each year, HUD’s goal
is to allow income limits to rise with
prevailing income growth, thus allowing
similar numbers of households to be
eligible for assistance each year. Many
HUD eligible households receive fixed
incomes. A number of fixed income
programs, such as social security and
veteran disability benefits, are adjusted
for inflation in a different way than
HUD income limits. Have income limits
kept pace in your community with other
social programs that provide basic
income for individuals and households
who would also need housing assistance
such as elderly, disabled, and homeless
veterans? That is, are individuals or
families that would have been eligible
in previous years now no longer eligible
because income limits have not kept
pace in your area? Or are more eligible
than had been the case previously?
Question for comment #3: In its
calculation of income limits, HUD may
adjust income limits away from the
legislatively defined percentages of Area
Median Family Income for places with
high and low housing costs relative to
Area Median Family Income, or where
incomes are otherwise unusually high
or low. Currently, beyond the limit on
increases and decreases discussed in
this notice, HUD also implements highand low-housing cost adjustments and
sets a floor for each State based on the
State non-metropolitan median family
income (for more information on the
current methodology, see https://
www.huduser.gov/portal/datasets/il//
il23/IncomeLimitsMethodology-
PO 00000
Frm 00077
Fmt 4703
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1585
FY23.pdf as well as HUD’s online
individual area income limit
documentation tool available at https://
www.huduser.gov/portal/datasets/
il.html#query_2023). What other
criteria, if any, should HUD use when
considering whether to make such
adjustments in addition to those in
existing policy? For example, should
there be a national minimum income
limit to reflect a minimum rent needed
to operate and maintain rental housing
in the lowest cost housing markets?
Should the same criteria be used in
United States territories?
Question for comment #4: HUD
recognizes the tension inherent in the
use of an income-based measurement
for setting rents, where the costs of
operating affordable housing rental
properties may grow faster or slower
than prevailing incomes, due to a
number of factors including, for
example, recent rises in insurance costs.
For LIHTC property owners, in the past
have you raised your rents in LIHTC
units to the maximum allowable yearover-year increases? For purposes of
HUD better understanding the context of
your answers, please indicate the
location of the property (e.g., ZIP code,
city, or county) to which the answer
applies.
Æ If yes, why have you done so, and
have the increases been adequate to
operate and maintain your property?
Æ In the years where you raised rents
to the maximum allowable amount, did
you see any changes in the turnover of
your units as compared with turnover in
years when you did not raise rents to
the maximum allowable amount?
Æ If no, what factors do you use in
determining how much you raise your
rents? In what years have HUD income
limit changes been adequate for a LIHTC
property to keep up with operating and
maintenance costs, and in what years
has it not been adequate?
Question for comment #5: Should
income limits consider direct measures
of costs, such as wages or insurance,
instead of, or in addition to, its high
housing cost adjustment, recognizing
that HUD may currently lack the
statutory authority to do so? If so, which
specific costs should HUD consider, and
which measurements or data would you
recommend as a reference?
Question for comment #6: Does
HUD’s income limits methodology help
or hinder the use of Housing Choice
Vouchers in LIHTC-financed properties?
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Federal Register / Vol. 89, No. 7 / Wednesday, January 10, 2024 / Notices
To what extent does this impact vary for
places with high and low housing costs?
Solomon Greene,
Principal Deputy Assistant Secretary for
Policy Development and Research.
[FR Doc. 2024–00279 Filed 1–9–24; 8:45 am]
BILLING CODE 4210–67–P
DEPARTMENT OF HOUSING AND
URBAN DEVELOPMENT
[Docket No. FR–7092–N–06]
Privacy Act of 1974; System of
Records
Office of Public Indian
Housing, HUD.
ACTION: Notice of a rescindment of a
system of records.
AGENCY:
SYSTEM NAME AND NUMBER:
Pursuant to the provisions of
the Privacy Act of 1974, as amended,
the Department of the Housing and
Urban Development (HUD), the Office of
Public Indian Housing, is issuing a
public notice of its intent to rescind the
Grants Interface Management System
(GIMS) because the system was
decommissioned by the Office of Chief
Information Officer in 2022.
DATES: Comments will be accepted on or
before February 9, 2024. This proposed
action will be effective immediately
upon publication.
ADDRESSES: You may submit comments,
identified by one of the following
methods:
Federal e-Rulemaking Portal: https://
www.regulations.gov. Follow the
instructions provided on that site to
submit comments electronically.
Fax: 202–619–8365.
Email: privacy@hud.gov.
Mail: Attention: Privacy Office;
LaDonne White, Chief Privacy Officer;
The Executive Secretariat; 451 Seventh
Street SW, Room 10139; Washington,
DC 20410–0001.
Instructions: All submissions received
must include the agency name and
docket number for this rulemaking. All
comments received will be posted
without change to https://
www.regulations.gov including any
personal information provided.
Docket: For access to the docket to
read background documents or
comments received go to https://
www.regulations.gov.
lotter on DSK11XQN23PROD with NOTICES1
SUMMARY:
FOR FURTHER INFORMATION CONTACT:
LaDonne White, Chief Privacy Officer,
451 Seventh Street SW, Room 10139;
Washington, DC 20410; telephone
number (202) 708–3054 (this is not a
toll-free number). HUD welcomes and is
prepared to receive calls from
VerDate Sep<11>2014
16:40 Jan 09, 2024
Jkt 262001
individuals who are deaf or hard of
hearing, as well as individuals with
speech or 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: The
Grants Interface Management System
(GIMS) was created to receive grant
applications from the Grants.gov portal.
HUD used this system as the repository
for the electronic application received.
Paper Records were typically stored in
locked cabinets and limited to those
personnel who service the records.
Records are no longer maintained by
HUD and have run the record retention
period. The records were wiped from
the system.
Grants Interface Management System
(GIMS), P017.
HISTORY:
The previously published notice in
the Federal Register [Docket Number
FR–5130–N–09], on August 2, 2007, 72
FR 42423.
Ladonne White,
Chief Privacy Officer, Office of
Administration.
[FR Doc. 2024–00276 Filed 1–9–24; 8:45 am]
BILLING CODE 4210–67–P
DEPARTMENT OF HOUSING AND
URBAN DEVELOPMENT
[Docket No. FR–7092–N–05]
Privacy Act of 1974; System of
Records
Office of Public and Indian
Housing, HUD.
ACTION: Notice of a rescindment of a
system of records.
AGENCY:
Pursuant to the provisions of
the Privacy Act of 1974, as amended,
the Department of the Housing and
Urban Development (HUD), the Office of
Public and Indian Housing, Office of
Public Housing and Voucher Programs,
is issuing a public notice of its intent to
rescind the Disaster Information System
(DIS) because the requirement for the
Disaster Housing Assistance Program
(DHAP) which ended in 2011.
DATES: Comments will be accepted on or
before February 9, 2024. This proposed
action will be effective immediately
upon publication.
ADDRESSES: You may submit comments,
identified by one of the following
methods:
Federal e-Rulemaking Portal: https://
www.regulations.gov. Follow the
SUMMARY:
PO 00000
Frm 00078
Fmt 4703
Sfmt 4703
instructions provided on that site to
submit comments electronically.
Fax: 202–619–8365.
Email: privacy@hud.gov.
Mail: Attention: Privacy Office;
LaDonne White, Chief Privacy Officer;
The Executive Secretariat; 451 Seventh
Street SW, Room 10139, Washington,
DC 20410–0001.
Instructions: All submissions received
must include the agency name and
docket number for this rulemaking. All
comments received will be posted
without change to https://
www.regulations.gov including any
personal information provided.
Docket: For access to the docket to
read background documents or
comments received go to https://
www.regulations.gov.
FOR FURTHER INFORMATION CONTACT:
LaDonne White, Chief Privacy Officer,
451 Seventh Street SW, Room 10139,
Washington, DC 20410; telephone
number (202) 708–3054 (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 or 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: The
Disaster Information System (DIS) was
used for program implementation
activities related to the Disaster Housing
Assistance Program (DHAP) case
management services. DHAP is a
Federal Emergency Management Agency
(FEMA) pilot grant program to provide
temporary rental subsidies and case
management for non-HUD assisted
individuals and families displaced by
Hurricanes Katrina or Rita. HUD was the
servicing agency that administers the
DHAP program for FEMA. The program
ended in 2011 and none of the records
are active because the information
would not be eligible for existing HUD
or FEMA programs and as such would
no longer be needed. Records are no
longer maintained by HUD and have run
the record retention period. The records
were wiped from the system. The
electronic records were destroyed in
accordance with schedule 20 of the
National Archives and Records
Administration General Records
Schedule. System no longer exists in
IAS or CSAM.
SYSTEM NAME AND NUMBER:
Disaster Information System (DIS).
HISTORY:
The previously published notice in
the Federal Register [Docket Number
E:\FR\FM\10JAN1.SGM
10JAN1
]]>Agencies
[Federal Register Volume 89, Number 7 (Wednesday, January 10, 2024)]
[Notices]
[Pages 1583-1586]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-00279]
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DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
[Docket No. FR-6436-N-01]
Changes to the Methodology Used for Calculating Section 8 Income
Limits Under the United States Housing Act of 1937
AGENCY: Office of the Assistant Secretary for Policy Development and
Research, HUD.
ACTION: Notice.
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SUMMARY: The United States Housing Act of 1937 provides for assisted
housing for ``low-income families'' and ``very low-income families.''
These designations are defined as percentages of area median family
income and are known as income limits. Since FY 2010, HUD has limited
the increase from year to year in its income limits as the higher of
five percent or twice the percentage change in national median family
income. This notice adds an express stipulation that the annual income
limit increase may never exceed ten percent. HUD further clarifies the
definition of national median family income for purposes of setting
income limits.
[[Page 1584]]
DATES: Comment Due Date: February 8, 2024.
ADDRESSES: HUD invites interested persons to submit comments on this
notice. Communications must refer to the above docket number and title.
There are two methods for submitting public comments.
1. Submission of Comments by Mail. Comments 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 20410-0500. Due to security measures at all Federal
agencies, however, submission of comments by mail often results in
delayed delivery. To ensure timely receipt of comments, HUD recommends
that comments submitted by mail be submitted at least two weeks in
advance of the public comment deadline.
2. Electronic Submission of Comments. Interested persons may submit
comments electronically through the Federal eRulemaking Portal at
https://www.regulations.gov. HUD strongly encourages commenters to
submit comments electronically. Electronic submission of comments
allows the commenter maximum time to prepare and submit a comment,
ensures timely receipt by HUD, and enables HUD to make them immediately
available to the public. Comments submitted electronically through the
https://www.regulations.gov website can be viewed by other commenters
and interested members of the public. Commenters should follow
instructions provided on that site to submit comments electronically.
Note: To receive consideration as public comments, comments 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. Facsimile (FAX) comments are not acceptable.
Public Inspection of Public Comments. All properly submitted
comments 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 must be scheduled by calling the Regulations Division at (202)
708-3055 (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 or 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. Copies of all comments submitted are available for inspection and
downloading at https://www.regulations.gov.
FOR FURTHER INFORMATION CONTACT: Questions on this notice may be
addressed to Adam Bibler, Director, Program Parameters and Research
Division, Office of Economic Affairs, Office of Policy Development and
Research, HUD Headquarters, 451 7th Street SW, Room 8208, Washington,
DC 20410, telephone number (202) 402-6057; or via email at
[email protected]. HUD welcomes and is prepared to receive calls from
individuals who are deaf or hard of hearing, as well as individuals
with speech or 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.
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 from https://www.federalregister.gov.
SUPPLEMENTARY INFORMATION:
I. Background
The United States Housing Act of 1937 (the 1937 Act) provides for
assisted housing for ``low-income families'' and ``very low-income
families.'' Section 3(b)(2) of the 1937 Act defines ``low-income
families'' and ``very low-income families'' as families whose incomes
are below 80 percent and 50 percent, respectively, of the area median
family income, with adjustments for family size. These income limits
are referred to as ``Section 8 income limits'' because of the
historical and statutory links with that program, although the same
income limits are also used as eligibility criteria for several other
federal programs. The 1937 Act specifies conditions under which Section
8 income limits are to be adjusted either on a designated area basis or
because of family incomes or housing-cost-to-income relationships that
are unusually high or low.\1\ Section 8 income limits use the same area
definitions as Section 8 Fair Market Rent (FMR) area definitions, which
in turn are based on Office of Management and Budget (OMB) metropolitan
statistical area definitions.
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\1\ The 1937 Act is codified at 42 U.S.C. 1437a.
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HUD issues updated area median family income estimates and Section
8 income limits annually. Since Fiscal Year (FY) 2010, HUD has limited
the amount that the income limit for an area could increase or
decrease.\2\ Prior to FY 2010, income limits could not decrease at all
and there was no limitation on annual increases. Under the current
methodology, HUD does not allow income limits to decrease by more than
5 percent from the prior year's level and does not allow income limits
to increase by more than the higher of 5 percent or twice the change in
the national median family income.
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\2\ Final Notice on Ending the ``Hold Harmless'' Policy in
Calculating Section 8 Income Limits Under the United States Housing
Act of 1937, 75 FR 27564 (May 17, 2010).
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There are several reasons for these limits on increases and
decreases. First, HUD's calculation of area median family income
estimates is based on survey data from the Census Bureau's American
Community Survey (ACS). Survey estimates of income are subject to
measurement error and may fluctuate from year to year even when the
true median income for a given area is unchanged. The limits on
increases and decreases ensure that outlier estimates of area median
family income changes do not cause undue administrative burden or
negatively impact program participants through wildly fluctuating
income limit levels.
Second, several programs, most notably the Low-Income Housing Tax
Credit (LIHTC), use Section 8 income limits to determine eligibility
and rent levels for low-income households. By limiting decreases in
income limits to no more than 5 percent, HUD helps ensure the financial
viability of affordable housing properties.\3\ By limiting increases in
income limits, HUD decreases the burden on low-income households who
may face large rent increases resulting from higher income limits.
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\3\ Effective income limits for properties financed with Low
Income Housing Tax Credits may not decrease once the properties are
placed in service. However, the viability of future properties and
properties under development may suffer if the income limit
decreases before the property is placed in service.
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II. Determination of the Limit (Cap) on Annual Income Limit Increases
This notice announces a change to the FY 2010 criteria for
determining the maximum possible increase in income limits. For FY 2024
income limits and thereafter, HUD intends to set the maximum possible
increase in income limits at the higher of five percent or
[[Page 1585]]
twice the change in national median family income, with an absolute cap
of ten percent. HUD believes that this adjustment to the current
methodology will align the cap rule with its intended purpose in high
income-growth periods. In such periods, doubling the year-to-year
change in national median family income produces a cap that is
significantly higher than the upper range of income growth experienced
by areas while limiting the possibility of overly burdensome rent
increases for LIHTC tenants.
Additionally, HUD is formally establishing the definition of
``national median family income'' used in the calculation of the cap in
income limit increases. From FY 2010 to FY 2014 HUD used an estimate of
national median family income based on the ACS estimate of national
family income adjusted in part with an inflation adjustment and in part
on historical trends in national median family income. From FY 2015 to
FY 2021 HUD used estimates of ACS national median income adjusted with
actual and forecast inflation alone. For FY 2022 and FY 2023, HUD used
unadjusted estimates of national median family income from the ACS.
For FY 2024 and thereafter, HUD intends to continue calculating the
cap on income limit increases using the most recent unadjusted
estimates of median family income provided by the Census Bureau via the
ACS. Therefore, for FY 2024 income limits, the cap would be based on
the change in national median family income from ACS 2021 to ACS 2022
(see the discussion below regarding HUD's income limit release
schedule). By continuing to remove inflation adjustments from its cap
calculation, HUD is keeping the calculation in line with its purpose of
capturing trends in median family income data addressing survey
volatility rather than volatility introduced by accelerating or
decelerating inflation.
III. ACS Basis for Median Family Incomes and Income Limits Release
Schedule
HUD released FY 2023 income limits on May 15, 2023. HUD would
ordinarily have based the 2023 income limits on ACS 2020 data. However,
the Census Bureau did not release normal ACS 2020 one-year data as a
result of difficulties with the ACS data collection during the COVID-19
pandemic. Therefore, HUD elected to ``skip'' 2020 and instead base the
FY 2023 income limits on ACS 2021 data. HUD intends to preserve this
two-year gap between the vintage of the ACS data and the fiscal year
for which the income limits are published. FY 2024 income limits will
therefore be based on ACS 2022 data. An exception to this practice may
occur in years in which the ACS implements new metropolitan statistical
area definitions that HUD has not yet captured in its Fair Market Rent
calculations. HUD believes it can implement this two-year gap and still
release income limits on or around April 1 of each year.
IV. Request for Comments
While HUD invites comments on any aspect of this notice, HUD is
particularly interested in receiving comments in response to the
following specific questions:
Question for comment #1: Is a cap of ten percent appropriate for
HUD's income limit calculation methodology? If not, is there an
alternative cap that would be more appropriate? Would such a cap harm
planned or in development LIHTC-financed properties (i.e., do such
properties assume rent growth in excess of 10 percent)?
Question for comment #2: In updating its income limits each year,
HUD's goal is to allow income limits to rise with prevailing income
growth, thus allowing similar numbers of households to be eligible for
assistance each year. Many HUD eligible households receive fixed
incomes. A number of fixed income programs, such as social security and
veteran disability benefits, are adjusted for inflation in a different
way than HUD income limits. Have income limits kept pace in your
community with other social programs that provide basic income for
individuals and households who would also need housing assistance such
as elderly, disabled, and homeless veterans? That is, are individuals
or families that would have been eligible in previous years now no
longer eligible because income limits have not kept pace in your area?
Or are more eligible than had been the case previously?
Question for comment #3: In its calculation of income limits, HUD
may adjust income limits away from the legislatively defined
percentages of Area Median Family Income for places with high and low
housing costs relative to Area Median Family Income, or where incomes
are otherwise unusually high or low. Currently, beyond the limit on
increases and decreases discussed in this notice, HUD also implements
high- and low-housing cost adjustments and sets a floor for each State
based on the State non-metropolitan median family income (for more
information on the current methodology, see https://www.huduser.gov/portal/datasets/il//il23/IncomeLimitsMethodology-FY23.pdf as well as
HUD's online individual area income limit documentation tool available
at https://www.huduser.gov/portal/datasets/il.html#query_2023). What
other criteria, if any, should HUD use when considering whether to make
such adjustments in addition to those in existing policy? For example,
should there be a national minimum income limit to reflect a minimum
rent needed to operate and maintain rental housing in the lowest cost
housing markets? Should the same criteria be used in United States
territories?
Question for comment #4: HUD recognizes the tension inherent in the
use of an income-based measurement for setting rents, where the costs
of operating affordable housing rental properties may grow faster or
slower than prevailing incomes, due to a number of factors including,
for example, recent rises in insurance costs. For LIHTC property
owners, in the past have you raised your rents in LIHTC units to the
maximum allowable year-over-year increases? For purposes of HUD better
understanding the context of your answers, please indicate the location
of the property (e.g., ZIP code, city, or county) to which the answer
applies.
[cir] If yes, why have you done so, and have the increases been
adequate to operate and maintain your property?
[cir] In the years where you raised rents to the maximum allowable
amount, did you see any changes in the turnover of your units as
compared with turnover in years when you did not raise rents to the
maximum allowable amount?
[cir] If no, what factors do you use in determining how much you
raise your rents? In what years have HUD income limit changes been
adequate for a LIHTC property to keep up with operating and maintenance
costs, and in what years has it not been adequate?
Question for comment #5: Should income limits consider direct
measures of costs, such as wages or insurance, instead of, or in
addition to, its high housing cost adjustment, recognizing that HUD may
currently lack the statutory authority to do so? If so, which specific
costs should HUD consider, and which measurements or data would you
recommend as a reference?
Question for comment #6: Does HUD's income limits methodology help
or hinder the use of Housing Choice Vouchers in LIHTC-financed
properties?
[[Page 1586]]
To what extent does this impact vary for places with high and low
housing costs?
Solomon Greene,
Principal Deputy Assistant Secretary for Policy Development and
Research.
[FR Doc. 2024-00279 Filed 1-9-24; 8:45 am]
BILLING CODE 4210-67-P
