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B. An analysis of the FMR issued by HUD indicates that average rents have increased an <br />average of 3.4 percent. To adapt to local conditions, the OHCD established two groups <br />of payment standards within the basic range. By grouping zip codes, applicants, <br />tenants, and staff are able to efficiently check which payment standard applies to their <br />unit. Each group has the same payment standard for all zip codes within that group. <br />Once a unit is identified, the unit must also meet tests of rent reasonableness. <br />C. The OHCD considered the following when determining whether an adjustment was <br />warranted: funding availability, rent burden of participating families, quality of units <br />selected, changes in rent to owner, unit availability, lease -up time and success rate. <br />D. Payment standards for "Exception Rent Zip Codes" were increased across the board up <br />to 110 percent of the FMR. Payment standards for "All Other Zip Codes" remained <br />unchanged, FM Rs range from 93 to 101 percent of the FMR. <br />E. Attached for consideration are the proposed payments standards for "Exception Rent Zip <br />Codes" and "All Other Zip Codes" in Hawaii County for the OHCD's Housing Choice <br />Voucher Program effective November 2, 2020. <br />RECOMMENDATION <br />Pursuant to Section B General Applicability of Rule 1. Rules relating to Administrative <br />Procedure of the Office of Housing and Community Development's Administrative Rules, that <br />the Housing Administrator review, adopt, and implement the Payment Standards for the Office <br />of Housing and Community Development's (OHCD) Housing Choice Voucher Program effective <br />November 2, 2020. <br />Attachment 1: FY 2021 Fair Market Rent Documentation System — Calculation for Hawaii <br />County, HI <br />Attachment 2: Summary of Hawaii County Income Limits 2020-21, Fair Market Rents, and <br />Proposed Payment Standards. <br />Attachment 3: Detailed Payment Standards by group <br />Prepared by Desiree Moore, Division Manager <br />Approved by the Housing Administrator <br />On the date set forth above <br />[ f As Proposed [ ] As Amended <br />Duane Hosaka <br />Housing Administrator <br />5760sdlm <br />For Action—September 22,2020 <br />