In a recent Federal Register Notice, HUD has provided further information on how to submit public comment as well as extended the due date for public comment to July 6.
May 30, 2018 — **Editor’s Note: at the time of publication, the link provided in the Federal Notice to the inflation factors was down and HUD’s Renewal Funding Inflation Factors webpage (linked below) lacked 2018 data.
HUD’s recent Federal Register Notice announces the release of 2018 Renewal Funding Inflation Factors (RFIFs) used for allocating Housing Choice Voucher funds to PHAs.
HUD used the same methodology this year as for 2017, performing a projection of gross rents and tenant incomes. Geographic-specific inflation factors (change in Fair Market Rent from one year to the next) are analyzed and then adjusted against annual change in national average Per Unit Cost (PUC) to produce local rents in determining allocations amongst various PHAs. In years prior to 2017, HUD utilized National PUC data combined with economic data to obtain an inflation forecast.
HUD is requesting public comment on its methodology. HUD currently allows for the use of PHA-sponsored, local rent survey data for calculating FMRs. The use of this data compared to a previous year’s use of American Community Survey Data, or vice versa, can cause erratic data issues. HUD offers several alternative methodologies in the Notice for commenters to choose from while also giving the option of a commenter providing an entirely new methodology.
