Notice of Certain Operating Cost Adjustment Factors for 2015
Federal Information & News Dispatch, Inc. |
Notice.
Citation: "79 FR 59502"
Document Number: "Docket No. 5810-N-01"
Page Number: "59502"
"Notices"
SUMMARY: This notice establishes operating cost adjustment factors (OCAFs) for project based assistance contracts for eligible multifamily housing projects having an anniversary date on or after
DATES: Effective Date:
FOR FURTHER INFORMATION CONTACT:
SUPPLEMENTARY INFORMATION: Section 514(e)(2) of MAHRA (42 U.S.C. 1437f note) requires HUD to establish guidelines for rent adjustments based on an OCAF. The statute requiring HUD to establish OCAFs for Low-Income Housing Preservation and Resident Homeownership Act (LIHPRHA) (12 U.S.C. 4101, et seq.) projects and projects with contract renewals or adjustments under section 524(b)(1)(A) of MAHRA is similar in wording and intent. HUD has therefore developed a single factor to be applied uniformly to all projects utilizing OCAFs as the method by which renewal rents are established or adjusted.
LIHPRHA projects are low-income housing projects insured by the
MAHRA gives HUD broad discretion in setting OCAFs, referring, for example, in sections 524(a)(4)(C)(i), 524(b)(1)(A), 524(b)(3)(A) and 524(c)(1) simply to "an operating cost adjustment factor established by the Secretary." The sole limitation to this grant of authority is a specific requirement in each of the foregoing provisions that application of an OCAF "shall not result in a negative adjustment." Contract rents are adjusted by applying the OCAF to that portion of the rent attributable to operating expenses exclusive of debt service.
The OCAFs provided in this notice and applicable to eligible projects having a project based assistance contracts anniversary date of on or after
The best current price data sources for the nine cost categories were used in calculating annual change factors. State-level data for fuel oil, electricity, and natural gas from
* Labor Costs: First quarter, 2014
* Property Taxes: Census Quarterly Summary of State and Local Government Tax Revenue--Table 1 http://www2.census.gov/govs/qtax/2014/q1t1.xls. 12-month property taxes are computed as the total of four quarters of tax receipts for the period from April through March. Total 12-month taxes are then divided by the number of occupied housing units to arrive at average 12-month tax per housing unit. The number of occupied housing units is taken from the estimates program at the
* Goods, Supplies, Equipment:
* Insurance:
* Fuel Oil: October 2013-March 2014 U.S. Weekly Heating Oil and Propane Prices report. Average weekly residential heating oil prices in cents per gallon excluding taxes for the period from
* Electricity:
* Natural Gas:
* Water and Sewer:
The sum of the nine cost component percentage weights equals 100 percent of operating costs for purposes of OCAF calculations. To calculate the OCAFs, state-level cost component weights developed from AFS data are multiplied by the selected inflation factors. For instance, if wages in
II. MAHRA and LIHPRHA OCAF Procedures
MAHRA, as amended, created the Mark-to-Market Program to reduce the cost of federal housing assistance, enhance HUD's administration of such assistance, and ensure the continued affordability of units in certain multifamily housing projects. Section 524 of MAHRA authorizes renewal of Section 8 project-based assistance contracts for projects without restructuring plans under the Mark-to-Market Program, including projects that are not eligible for a restructuring plan and those for which the owner does not request such a plan. Renewals must be at rents not exceeding comparable market rents except for certain projects. As an example, for Section 8 Moderate Rehabilitation projects, other than single room occupancy projects (SROs) under the McKinney-Vento Homeless Assistance Act (42 U.S.C. 11301 et seq.), that are eligible for renewal under section 524(b)(3) of MAHRA, the renewal rents are required to be set at the lesser of: (1) The existing rents under the expiring contract, as adjusted by the OCAF; (2) fair market rents (less any amounts allowed for tenant-purchased utilities); or (3) comparable market rents for the market area.
LIHPRHA (see, in particular, section 222(a)(2)(G)(i), 12 U.S.C. 4112 (a)(2)(G) and HUD's regulations at 24 CFR 248.145(a)(9)) requires that future rent adjustments for LIHPRHA projects be made by applying an annual factor, to be determined by HUD to the portion of project rent attributable to operating expenses for the project and, where the owner is a priority purchaser, to the portion of project rent attributable to project oversight costs.
III. Findings and Certifications
Environmental Impact
This issuance sets forth rate determinations and related external administrative requirements and procedures that do 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).
Catalog of Federal Domestic Assistance Number
The Catalog of Federal Domestic Assistance Number for this program is 14.187.
Paperwork Reduction Act
This notice reduces information collection requirements already submitted to the
Dated:
Assistant Secretary for Housing-Federal Housing Commissioner.
Appendix GOES
Operating Cost Adjustment Factors for 2015Alabama 1.9Alaska 2.2Arizona 2.0Arkansas 1.9California 2.6Colorado 2.0Connecticut 1.7Delaware 1.5District of Columbia 2.3Florida 2.2Georgia 2.0Hawaii 1.5Idaho 2.5Illinois 1.7Indiana 2.1Iowa 2.1Kansas 2.2Kentucky 2.1Louisiana 2.7Maine 1.8Maryland 2.1Massachusetts 2.4Michigan 1.4Minnesota 2.4Mississippi 2.4Missouri 2.0Montana 2.2Nebraska 2.1Nevada 2.0New Hampshire 2.2New Jersey 2.0New Mexico 2.4New York 2.2North Carolina 2.0North Dakota 2.0Ohio 2.0Oklahoma 1.8Oregon 2.2 Pacific Islands 1.5Pennsylvania 2.0Puerto Rico 2.0Rhode Island 2.7South Carolina 2.2South Dakota 2.0Tennessee 2.0Texas 2.4Utah 2.2Vermont 2.0Virgin Islands 2.4Virginia 1.8Washington 2.2West Virginia 1.6Wisconsin 2.1Wyoming 2.1 US Average 2.1
[FR Doc. 2014-23475 Filed 10-1-14;
BILLING CODE 4210-67-P
Copyright: | (c) 2014 Federal Information & News Dispatch, Inc. |
Wordcount: | 1733 |
General Technical, Organizational, and Conforming Amendments to the Federal Motor Carrier Safety Regulations
The Medicine Shoppe; Decision and Order
Advisor News
Annuity News
Health/Employee Benefits News
Life Insurance News