Resolution 06-11

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					                                        RESOLUTION FY13-6

                      To Approve the Section 8 Payment Standards in FY 2013

WHEREAS, the Department of Housing & Urban Development (HUD) annually establishes and
publishes Fair Market Rents (FMRs) by locale; and

WHEREAS, the Ann Arbor Housing Commission’s payment standards are currently set at 101-
107% of the published FY 2012 FMRs; and

WHEREAS, the FY 2013 Proposed FMRs scheduled for HUD approval effective October 1,
2012 describes an increase for Washtenaw County by 8% and Monroe County by 8% and lastly,
Wayne County increased by 2%; and

WHEREAS, maintaining the use of the FY 2012 payment standards for FY 2012 keeps the
Commission within the HUD-allowable range of between 90% to 110% of the published FMRs
with the exception of those units that are outside of the HUD allowable range; and

             Monroe                           Washtenaw                      W. Wayne

  Bed        2012     2013    % of   2013      2012   2013    % of   2013    2012   2013    % of   2013
  Size        PS      FMR     FMR     PS        PS    FMR     FMR     PS      PS    FMR     FMR     PS
  0          $634     $449    71%    $494      $649   $630    97%    $649    $584   $495    82%    $446
  1          $637     $562    113%   $618      $728   $760    96%    $728    $665   $629    105%   $665
  2          $766     $754    101%   $766      $886   $901    98%    $886    $796   $821    97%    $796
  3          $1000    $971    103%   $1000    $1115   $1232   90%    $1115   $952   $1095   87%    $986
  4          $1102    $1149   96%    $1102    $1147   $1596   70%    $1517   $981   $1196   82%    $1076
         Overall % Chg        8%                              8%                            2%

NOW THEREFORE BE IT RESOLVED, that the Ann Arbor Housing Commission Board
approve this resolution to continue to use the FY 2012 Section 8 payment standards, with the
exception of those units that are outside of the HUD allowable range for all counties for FY 2013
to be effective October 1, 2012 for all applicable certifications in accordance with the
Commission’s Section 8 Administrative Plan.

Motion by Commissioner _______________, seconded by Commissioner _____________,
to approve Resolution FY13-6 this September 19, 2012.

AYES: _______                               ___________________________________
                                            Ronald Woods, President

NAYS: _______                               _______________________________________________
                                            Jennifer Hall, Executive Director and Recording Secretary
                                             Memorandum
TO:              Jennifer Hall, Executive Director
FROM:            Weneshia Brand, Section 8 Housing Program Manager
DATE:            September 14, 2012
RE:              Section 8 Payment Standards Review

The Department of Housing and Urban Development (HUD) annually sets Fair Market Rents
(FMRs), for determining eligibility of rental costs in Section 8 programs. FMRs are gross rent
estimates representing rent and utility costs in private sector rental housing, pegged at
approximately the 40th percentile. The AAHC must review its payment standards schedule
annually and amend it as needed to ensure that the payment standards remain within the HUD-
required range (between 90% and 110% of the approved FMRs). A payment standard, in general
terms, is the amount generally needed to rent a moderately-priced dwelling unit in the local
housing market and that is used to calculate the amount of housing assistance a family will receive.
The Commission’s Section 8 Payment Standards are currently at 70-113% of the published FY
2013 Proposed FMRs. After the annual review the Commission proposes to maintain the FY
2012 Payment Standards for FY 2013, with the exception of those units that are outside of
the HUD allowable range.

The Commission’s jurisdiction includes three counties (Washtenaw, Western Wayne and
Monroe). If established FY 2013 FMRs were applied, there would be a one percent (8%)
increase in the Commission’s payment standards for residents living in Washtenaw County and a
seven percent (8%) decrease for those in Monroe County, and less than a one percent (2%)
increase for Wayne County residents.

After thorough evaluation it is recommended that AAHC maintain the payment standard adopted
for fiscal year 2012 for its fiscal year 2013. During this review is was also determined that
various unit sizes fair market rent increased or decreased where the percentage change results
were outside of the HUD allowable range. As result, we are required to amend the payment
standard for each unit size that is not within the regulation guideline. Below is a depiction of the
AAHC current payment standard compared to the 2013 HUD proposed fair market rent.

  2012 Payment Standards vs. 2013 FMR
             Monroe                          Washtenaw                      W. Wayne

  Bed        2012     2013    % of   2013     2012   2013    % of   2013    2012   2013    % of   2013
  Size        PS      FMR     FMR     PS       PS    FMR     FMR     PS      PS    FMR     FMR     PS
  0          $634     $449    71%    $494     $649   $630    97%    $649    $584   $495    82%    $446
  1          $637     $562    113%   $618     $728   $760    96%    $728    $665   $629    105%   $665
  2          $766     $754    101%   $766     $886   $901    98%    $886    $796   $821    97%    $796
  3          $1000    $971    103%   $1000   $1115   $1232   90%    $1115   $952   $1095   87%    $986
  4          $1102    $1149   96%    $1102   $1147   $1596   70%    $1517   $981   $1196   82%    $1076
         Overall % Chg        8%                             8%                            2%

				
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