{"id":44115,"date":"2024-10-08T10:10:39","date_gmt":"2024-10-08T14:10:39","guid":{"rendered":"https:\/\/www.nahro.org\/?post_type=news&p=44115"},"modified":"2024-10-08T10:12:51","modified_gmt":"2024-10-08T14:12:51","slug":"hud-publishes-comprehensive-guidance-on-payment-standards","status":"publish","type":"news","link":"https:\/\/www.nahro.org\/news\/hud-publishes-comprehensive-guidance-on-payment-standards\/","title":{"rendered":"HUD Publishes Comprehensive Guidance on Payment Standards"},"content":{"rendered":"\n

By: Tushar Gurjal, Senior Policy Manager<\/p>\n\n\n\n

On September 30, HUD published Notice PIH 2024-34<\/a> titled \u201cUpdated and Consolidated Policy Guidance on Housing Choice Voucher (HCV) Program Payment Standards<\/a>.\u201d This notice gives comprehensive guidance to PHAs on payment standards after the implementation of recent regulatory changes. The notice discusses Fair Market Rents (FMRs), Small  Area FMRs, establishing payment standards, mandatory and opt-in Small Area FMRs, exception payment standards, success rate payment standard phase-out, deconcentration payment standards, payment standards lower than the basic range, applying increases and decreases to payment standards, reasonable accommodation payment standards, project-based vouchers, administrative plan requirements, reevaluation of HUD-published FMRs, and certain other topics.<\/p>\n\n\n\n

The notice provides an overview of FMRs and Small Area FMRs. It discusses the relationship between payment standards and FMRs, the role of FMRs in the Project-Based Voucher program, and the different type of FMRs including metropolitan FMRs, non-metropolitan FMRs, and zip-code area FMRs (i.e., Small Area FMRs).<\/p>\n\n\n\n

Payment Standards<\/strong><\/p>\n\n\n\n

The notice discusses the differing ways to set payment standards. In many instances, a payment standard may be applicable to an entire FMR, but there are multiple instances where that will not be the case. For example, in areas where Small Area FMRs are not mandatory, PHAs may still opt to use Small Area FMRs as the basis for exception payment standards in areas within their jurisdiction. A PHA may designate a payment standard area that is a census tract or a block of census tracts, but the area must at least be a census tract and not smaller. Housing agencies may also set a basic range of at least 90% to 110% of the applicable FMR. Housing agencies are encouraged to publish their payment standard schedule on their website.<\/p>\n\n\n\n

Small Area FMRs<\/strong><\/p>\n\n\n\n

Housing agencies that will use Small Area FMRs are those that are required to use them because they are in a mandatory Small Area FMR region or because they opt-in to use them. Small Area FMRs are not used by a PHA\u2019s Project-Based Voucher (PBV) program unless the PHA has a policy that they be used in future PBV projects where the Small Area FMRs are in effect.<\/p>\n\n\n\n

The Department has designated several areas throughout the country where it is mandatory for PHAs to use Small Area FMRs. For those PHAs with jurisdictions wider than the mandatory designated area, they must use Small Area FMRs in those areas where the mandatory requirement is in place within their jurisdiction. Moving to Work agencies may be exempt from the mandatory Small Area FMR requirement if they have an alternative payment standard scheme in place. Additionally, Small Area FMRs may be suspended or temporarily exempt from the mandatory requirement in certain instances including, but not limited to, low vacancy rates, influx of families into the area, loss of rental units, or a rapid increase in the per unit cost. Declining success rates, in some instances, may also signify adverse rental conditions requiring the suspension of the designation or the exemption of a PHA from the Small Area FMR designation.<\/p>\n\n\n\n

Housing agencies may also voluntarily opt-in to use Small Area FMRs when not mandatorily required to do so. For PHAs that opt-in, they may opt-in in one or more of the FMR areas in which they administer vouchers. When deciding to opt-in the PHA should consider the availability of rental housing, the impact on family rent burdens, the potential need for additional rent reasonableness determinations, and whether to apply the Small Area FMR to their PBV program. The notice provides instructions for opting into Small Area FMRs.<\/p>\n\n\n\n

Exception Payment Standards<\/strong><\/p>\n\n\n\n

There are several options to set payment standard beyond their basic range:<\/p>\n\n\n\n