[Federal Register Volume 79, Number 81 (Monday, April 28, 2014)]
[Notices]
[Pages 23368-23369]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2014-09543]
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DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
[Docket No. FR-5780-N-01]
Section 8 Housing Assistance Payments Program--Fiscal Year (FY)
2014 Inflation Factors for Public Housing Agency (PHA) Renewal Funding
AGENCY: Office of the Assistant Secretary for Policy Development and
Research, HUD.
ACTION: Notice.
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SUMMARY: The Consolidated Appropriations Act, 2014 requires that HUD
apply ``an inflation factor as established by the Secretary, by notice
published in the Federal Register'' to adjust FY 2014 renewal funding
for the Tenant-based Rental Assistance Program or Housing Choice
Voucher (HCV) Program of each PHA. HUD began using Renewal Funding
Inflation Factors in FY 2012. These Renewal Funding Inflation Factors
incorporate economic indices to measure the expected change in per unit
costs (PUC) for the HCV program. The methodology for FY 2014 is similar
to that used in FY 2013.
DATES: Effective Date: April 28, 2014.
FOR FURTHER INFORMATION CONTACT: Michael S. Dennis, Director, Housing
Voucher Programs, Office of Public Housing and Voucher Programs, Office
of Public and Indian Housing, telephone number 202-708-1380; or, for
technical information regarding the development of the schedules for
specific areas or the methods used for calculating the inflation
factors, Peter B. Kahn, Director, Economic and Market Analysis
Division, Office of Policy Development and Research, telephone number
202-402-2409, Department of Housing and Urban Development, 451 7th
Street SW., Washington, DC 20410. Hearing- or speech-impaired persons
may contact the Federal Relay Service at 800-877-8339 (TTY). (Other
than the ``800'' TTY number, the above-listed telephone numbers are not
toll free.)
SUPPLEMENTARY INFORMATION:
I. Background
Tables showing Renewal Funding Inflation Factors will be available
electronically from the HUD data information page at: http://www.huduser.org/portal/datasets/rfif/FY2014/FY2014_IF_Table.pdf.
Division L, Title II, Consolidated Appropriations Act, 2014 (Pub.
L. 113-76, approved January 17, 2014) requires that the HUD Secretary,
for the calendar year 2014 funding cycle, provide renewal funding for
each public housing agency (PHA) based on validated voucher management
system (VMS) leasing and cost data for the prior calendar year and by
applying an inflation factor as established by the Secretary, by notice
published in the Federal Register. This notice provides the FY 2014
inflation factors and describes the methodology for calculating them.
II. Methodology
The Department has focused on measuring the change in average per
unit cost (PUC) as captured in HUD's administrative data in VMS. In
order to predict the likely path of PUC over time, HUD has implemented
a model that uses three economic indices that capture key components of
the economic climate and assist in explaining the changes in PUC. These
economic components are the seasonally-adjusted unemployment rate
(lagged twelve months), the Consumer Price Index from the Bureau of
Labor Statistics, and the ``wages and salaries'' component of personal
income from the National Income and Product Accounts from the Bureau of
Economic Analysis. This model subsequently forecasts the expected
annual change in average PUC from Calendar Year (CY) 2013 to CY 2014
for the voucher program on a national basis by incorporating comparable
economic variables from the Administration's economic assumptions. For
reference, these economic assumptions are described in the FY 2015
Budget.
The inflation factor for an individual geographic area is based on
the change in the area's Fair Market Rent (FMR) \1\ between FY 2013 and
FY 2014. These changes in FMR are then scaled such that the voucher-
weighted average of all individual area inflation factors is equal to
the expected annual change in national PUC from FY 2013 to FY 2014, and
also such that no area has a factor less than one. HUD subsequently
applies these calculated individual area inflation factors to eligible
renewal funding for each PHA based on VMS leasing and cost data for the
prior calendar year. For the CY 2014 PHA HCV allocation uses 0.23
percent as the annual change in PUC. This figure was calculated by
using VMS data through December of 2013 and actual performance of
economic indices through December of 2013.
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\1\ Most FMRs are set at the 40th percentile of the distribution
of gross rents in the area. Several FMR areas have their FMRs based
on 50th percentile rents as a tool for deconcentrating voucher
holders within the FMR area. For consistency, changes in rents from
FY 2013 to FY 2014 are measured using 40th percentile rents for all
areas.
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III. The Use of Inflation Factors
The inflation factors have been developed to account for relative
differences in the PUC of vouchers so that HCV funds can be allocated
among PHAs. HUD will continue to update the current model with
available data in order to assess the expected annual change in PUC and
may update the methodology for future funding estimates, if necessary.
HUD is also continuing to review and refine the methodology, especially
for area differences in the factors, which will be described in future
inflation factor notices.
[[Page 23369]]
IV. Geographic Areas and Area Definitions
Inflation factors based on PUC forecasts are produced for all FMR
areas. The tables showing the Renewal Funding Inflation Factors
available electronically from the HUD data information page list the
inflation factors for each FMR area and are created on a state by state
basis. The inflation factors use the same OMB metropolitan area
definitions, as revised by HUD, that are used in the FY 2014 FMRs. To
make certain that they are referencing the correct inflation factors,
PHAs should refer to the Area Definitions Table on the following Web
page: http://www.huduser.org/portal/datasets/rfif/FY2014/FY2014_AreaDef.pdf. The Area Definitions Table lists areas in alphabetical
order by state, and the counties associated with each area. In the six
New England states, the listings are for counties or parts of counties
as defined by towns or cities.
V. Environmental Impact
This notice involves a statutorily required establishment of a rate
or cost determination which does not constitute a development decision
affecting the physical condition of specific project areas or building
sites. Accordingly, under 24 CFR 50.19(c)(6), this notice is
categorically excluded from environmental review under the National
Environmental Policy Act of 1969 (42 U.S.C. 4321).
Dated: April 21, 2014.
Jean Lin Pao,
General Deputy Assistant Secretary, for Policy Development and
Research.
[FR Doc. 2014-09543 Filed 4-25-14; 8:45 am]
BILLING CODE 4210-67-P