Department of Housing and Urban Development February 14, 2006 – Federal Register Recent Federal Regulation Documents

Section 8(c)(1) of the United States Housing Act of 1937 (USHA) requires the Secretary to publish fair market rents (FMRs) periodically, but not less than annually, to be effective on October 1 of each year. On October 3, 2005, HUD published final FMRs for Fiscal Year (FY) 2006. This notice identified 58 areas at 50th percentile FMRs, which consists of 48 areas previously eligible for 50th percentile FMRs plus 10 areas that are newly eligible. The 48 existing 50th percentile FMR areas were evaluated in a notice published August 25, 2005 (70 FR 50138) and it was determined that only 14 of these areas would remain eligible to participate in the 50th percentile FMR program. This notice confirms the eligibility of the 24 areas identified as having continuing or new eligibility for 50th percentile FMRs. Following a review of public comments, this notice confirms and implements elimination of 50th percentile FMRs for the 34 areas identified as no longer eligible in the August 25, 2005, notice. HUD has special exception procedures to adjust voucher payment standards in areas affected by natural disasters. Areas directly or indirectly impacted by Hurricanes Katrina or Rita are either already qualified to use exception payment standards or can submit a documented request to do so. In areas directly affected by the two recent hurricanes, public housing agencies are authorized to use voucher payment standards of up to 120 percent of published FMRs, which is significantly higher than the standards permitted for 50th percentile areas. In addition, public housing agencies in these areas may request higher exception payment standards if justified by local rent increases.