HUD Releases Small Area FMR Final Rule
HUD will release the Small Area Fair Market Rents in Housing Choice Voucher Program Values for Selection Criteria and Metropolitan Areas Subject to Small Area Fair Market Rents Final Rule in the Federal Register tomorrow (November 16). HUD will also release a Notice in the Federal Register that would set the selection values for Small Area FMRs (SAFMRs). Subsequent SAFRMs will be specified through the Federal Register notice providing the public the opportunity to comment as new SAFMR designations are made. More information on HUD’s proposed rule (released June 2), can be found here (members only), and NAHRO’s comments can be found here (members only). NAHRO will hold a webinar on the final rule on Monday, December 19. Save the date and stay tuned for additional information.
In additional to other changes, the final rule includes additional criteria by which SAFMRs will be set. The final rule adds the vacancy rate of an area as a criterion and excludes metropolitan areas with a certain ACS vacancy rate from being designated a SAFMR area. The final rule also adds a threshold for the voucher concentration ratio to better target communities where voucher concentration is most severe.
As a result of the additional criteria, 7 Metropolitan Statistical Areas (MSAs) have been exempted from complying with the SAFMR final rule that were included in the proposed rule. These MSAs are:
- Nassau County-Suffolk County
- New York, NY
- Oakland-Hayward-Berkeley, CA
- Oxnard-Thousand Oaks-Ventura, CA
- San Jose-Sunnyvale-Santa Clara, CA
- Tacoma-Lakewood, WA
- Virginia Beach-Norfolk-Newport News, VA
NAHRO will provide a detailed analysis of the final rule in the coming days. The final rule will go into effect 60 days after its publication date.