Laserfiche WebLink
Approved by the Housing Administrator -� <br />September 22, 2020 <br />FOR ACTION <br />To adopt payment standards for the Office of Housing and Community Development's (OHCD) <br />Housing Choice Voucher (HCV) Program for Hawai'i County. The U.S. Department of Housing <br />and Urban Development (HUD) has required the use of Fair Market Rents (FMRs) to authorize <br />the OHCD to implement the payment standard to be between 90 to 110 percent including <br />making further adjustments if it determines the rent burdens for assisted families are <br />unacceptably high, or based on a determination of an anticipated housing assistance funding <br />shortfall. <br />FACTS <br />A. The U.S. Department of Housing and Urban Development (HUD) annually estimates fair <br />market rents (FMR) for Office of Management and Budget (OMB) defined metropolitan <br />areas, some HUD defined subdivisions of OMB metropolitan areas and each <br />nonmetropolitan county. <br />B. In the administration of the HCV program, the payment standard sets the maximum <br />subsidy payment a family can receive from the PHA each month. For most jurisdictions, <br />FMRs are set at the 40th percentile of rents in the market area. The FY 2021 FMRs for <br />Hawaii County are based on the results of a local rent survey conducted in December <br />2017. <br />C. The OHCD's HCV program is operated in the County of Hawai'i which is considered a <br />nonmetropolitan county. A payment standard schedule is required to establish payment <br />standard amounts for each FMR area within the PHA's jurisdiction, and for each unit size <br />within each FMR area. The PHA may set different payment standards for different parts <br />of the FMR area. Payment standard amounts are to be established within a basic range <br />between 90 and 110 percent of the published FMR for each unit size. <br />D. 42 USC 1437f requires FMRS be posted at least 30 days before they are effective and <br />that they are effective at the start of the federal fiscal year (generally October 1). <br />DISCUSSION <br />A. As required by the Federal program regulations, OHCD reviews and adjusts the <br />Payment Standards as HUD publishes the new FMRs. The payment standard was last <br />updated December 1, 2019. The OHCD must adjust its payment standard no later than <br />three (3) months following the effective date of the change in the FMR.. As such, the <br />OHCD must make proposed changes effective no later than January 1, 2021. <br />5760sdlm <br />Far Action—September 2 2,202 0 <br />