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To: Owners/Agents of IFA Section 8 Properties
From: Carole S. Vipond, Director, Section 8
Date: November 13, 2009
Subject: Notice of Certain Operating Cost Adjustment Factors for 2010
MANAGEMENT BULLETIN #047
On November 13, 2009 HUD published in the Federal Register Docket No. FR-5362-N-01
Notice of Certain Operating Cost Adjustment Factors for 2010.
This notice establishes, for 2010, operating cost adjustment factors (OCAFs). OCAFs are annual
factors used to adjust Section 8 rents renewed under section 524 of the Multifamily Assisted
Housing Reform and Affordability Act of 1997 (MAHRA).
These OCAFs are effective as of February 11, 2010. The FY 2010 OCAF for Iowa is 6.0%.
A copy of the notice follows. This Notice may also be obtained directly from the Federal
Register at [http://edocket.access.gpo.gov/2009/pdf/E9‐27340.pdf ]
Please contact your IFA Housing Compliance Specialist or HUD Project Manager with any
questions relating to this notice.
Federal Register / Vol. 74, No. 217 / Thursday, November 12, 2009 / Notices 58305
RECOVERY ACT INDIAN COMMUNITY DEVELOPMENT BLOCK GRANT AWARDS—Continued
Name of applicant Amount funded Activity funded Project description
Los Coyotes Band of Cahuilla and Cupeno Indi- 235,925 Housing Rehabilitation .......... Rehabilitate 13 homes for low- and mod-
ans, Diane McHenry, Grant Writer, P.O. Box erate-income tribal members.
189, Warner Springs, Ca 92806, (760) 432–666.
Ohkay Owingeh Housing Authority, Tomasita 600,000 Housing Rehabilitation .......... Rehabilitate 14 homes that are occupied
Duran, Executive Director, P.O. Box 1059, by low- and moderate-income families
Ohkay Owingeh, NM 87566, (505) 852–0189. located outside of the Pueblo’s historic
area.
Quechan Tribally Designated Housing Entity, 600,000 Housing Rehabilitation .......... Rehabilitate 10 homeownership housing
Robert Letendre, Executive Director, 1860 West units in an old subdivision.
Sapphire Lane, Winterhaven CA 92283, (760)
572–0243.
Total for Southwest Region ............................ 2,635,925
Grand total ............................................... 10,000,000
[FR Doc. E9–27341 Filed 11–10–09; 8:45 am] single factor to be applied uniformly to portfolio have become the FY 2010
BILLING CODE 4210–67–P all projects utilizing OCAFs as the OCAFs.
method by which renewal rents are OCAFs continue to be published at
established or adjusted. the state level. States are the lowest
DEPARTMENT OF HOUSING AND LIHPRHA projects are low-income level of geographical aggregation at
URBAN DEVELOPMENT housing projects insured by the Federal which there are enough projects to
Housing Administration (FHA). permit statistically reliable analysis.
[Docket No. FR–5362–N–01] LIHPRHA projects are primarily low- Additionally, no data were available for
Notice of Certain Operating Cost income housing projects insured under the Western Pacific Islands. Data for
Adjustment Factors for 2010 section 221(d)(3) below-market interest Hawaii was therefore used to generate
rate (BMIR) and section 236 of the OCAFs for these areas. Finally, due to
AGENCY: Office of the Assistant National Housing Act, respectively. limited data, Puerto Rico data was used
Secretary for Housing—Federal Housing Both categories of projects have low- to generate OCAFs for the Virgin
Commissioner, HUD. income use restrictions that have been Islands.
ACTION: Notice. extended beyond the 20-year period The Department continues to
specified in the original documents, and reexamine the methodology for
SUMMARY: This notice establishes, for both categories of projects also receive computing the operating cost
2010, operating cost adjustment factors assistance under section 8 of the U.S. adjustment factors so that they more
(OCAFs). OCAFs are annual factors used Housing Act of 1937 to support the closely mirror actual operating
to adjust Section 8 rents renewed under continued low-income use. expenses. Future OCAF releases will
section 524 of the Multifamily Assisted Additionally, MAHRA gives HUD likely include methodology
Housing Reform and Affordability Act broad discretion in setting OCAFs— improvements.
of 1997 (MAHRA). referring, for example, in sections
524(a)(4)(C)(i), 524(b)(1)(A), 524(b)(3)(A) II. MAHRA and LIHPRHA OCAF
DATES: Effective Date: February 11, Procedures
2010. and 524(c)(1) simply to ‘‘an operating
cost adjustment factor established by the MAHRA, as amended, created the
FOR FURTHER INFORMATION CONTACT: Secretary.’’ The sole limitation to this Mark-to-Market Program to reduce the
Charles Capone, Director, Office of grant of authority is a specific cost of federal housing assistance,
Evaluation, Office of Housing, requirement in each of the foregoing enhance HUD’s administration of such
Department of Housing and Urban provisions that application of an OCAF assistance, and ensure the continued
Development, 451 7th Street, SW., ‘‘shall not result in a negative affordability of units in certain
Washington, DC 20410; telephone adjustment.’’ Contract rents are adjusted multifamily housing projects. Section
number 202–402–3237 (this is not a toll- by applying the OCAF to that portion of 524 of MAHRA authorizes renewal of
free number). Hearing- or speech- the rent attributable to operating Section 8 project-based assistance
impaired individuals may access this expenses exclusive of debt service. contracts for projects without
number through TTY by calling the toll- HUD calculates the average, per unit, restructuring plans under the Mark-to-
free Federal Information Relay Service change in operating costs (excluding Market Program, including projects that
at 800–877–8339. debt service and bad debt expense), by are not eligible for a restructuring plan
SUPPLEMENTARY INFORMATION: state, for all projects submitting and those for which the owner does not
consecutive valid financial statement request such a plan. Renewals must be
I. OCAFs reports with fiscal year end dates at rents not exceeding comparable
Section 514(e)(2) of MAHRA requires between July 31, 2007 and July 31, 2009. market rents except for certain projects.
HUD to establish guidelines for rent The projects comprise all multifamily As an example, for Section 8 Moderate
jlentini on DSKJ8SOYB1PROD with NOTICES
adjustments based on an OCAF. The properties excluding nursing homes and Rehabilitation projects, other than single
statute requiring HUD to establish hospitals. Furthermore, data for projects room occupancy projects (SROs) under
OCAFs for LIHPRHA projects and with unusually high or low expenses the McKinney-Vento Homeless
projects with contract renewals or due to unusual circumstances were Assistance Act (42 U.S.C. 11301 et seq.),
adjustments under section 524 of deleted from the analysis. These that are eligible for renewal under
MAHRA is similar in wording and changes in actual operating costs section 524(b)(3) of MAHRA, the
intent. HUD has therefore developed a experienced by properties within HUD’s renewal rents are required to be set at
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58306 Federal Register / Vol. 74, No. 217 / Thursday, November 12, 2009 / Notices
the lesser of: (1) The existing rents OPERATING COST ADJUSTMENT expedited basis, eligible activities under
under the expiring contract, as adjusted FACTORS FOR 2010—Continued the CDBG program. The May 5, 2009,
by the OCAF; (2) fair market rents (less [U.S. Average: 4.7%]
Notice also indicated that HUD would
any amounts allowed for tenant- establish and publish in the Federal
purchased utilities); or (3) comparable Maryland ............................................. 5.0 Register criteria for reallocating and
market rents for the market area. Massachusetts .................................... 5.6 awarding CDBG–R funds that are not
LIHPRHA (see, in particular, section Michigan ............................................. 3.8 awarded to any eligible jurisdiction.
222(a)(2)(G)(i), 12 U.S.C. 4112 (a)(2)(G) Minnesota ........................................... 5.3 Only one jurisdiction did not apply to
and the regulations at 24 CFR Mississippi .......................................... 4.7 receive its Recovery Act allocation.
Missouri .............................................. 3.9
248.145(a)(9)) requires that future rent Today’s Notice announces the process
Montana .............................................. 3.2
adjustments for LIHPRHA projects be Nebraska ............................................ 2.3 HUD will use to reallocate this
made by applying an annual factor, to Nevada ............................................... 5.1 assistance.
be determined by HUD to the portion of New Hampshire .................................. 5.7 FOR FURTHER INFORMATION CONTACT:
project rent attributable to operating New Jersey ......................................... 5.5 Stanley Gimont, Director, Office of
expenses for the project and, where the New Mexico ........................................ 6.4
Block Grant Assistance, Office of
owner is a priority purchaser, to the New York ............................................ 5.4
North Carolina .................................... 4.1 Community Planning and Development,
portion of project rent attributable to Department of Housing and Urban
project oversight costs. North Dakota ...................................... 6.6
Ohio .................................................... 5.4 Development, 451 7th Street, SW.,
III. Findings and Certifications Oklahoma ........................................... 4.7 Room 7286, Washington, DC 20410;
Oregon ................................................ 3.2 telephone number 202–708–3587 (this
Environmental Impact Pacific Islands ..................................... 7.5 is not a toll-free number). Persons with
This issuance sets forth rate Pennsylvania ...................................... 4.1 hearing or speech impairments may
determinations and related external Puerto Rico ......................................... 4.6 access this number through TTY by
administrative requirements and Rhode Island ...................................... 5.2
calling the toll-free Federal Information
South Carolina .................................... 4.1
procedures that do not constitute a Relay Service at 800–877–8339.
South Dakota ...................................... 3.5
development decision affecting the Tennessee .......................................... 3.6 Interested parties may also visit the
physical condition of specific project Texas .................................................. 5.5 CDBG–R Web page on HUD’s Recovery
areas or building sites. Accordingly, Utah .................................................... 5.1 Act Web site, http://www.hud.gov/
under 24 CFR 50.19(c)(6), this notice is Vermont .............................................. 4.1 recovery/, for updated information and
categorically excluded from Virgin Islands ...................................... 4.6 resources.
environmental review under the Virginia ................................................ 5.1 SUPPLEMENTARY INFORMATION:
National Environmental Policy Act of Washington ......................................... 3.9
1969 (42 U.S.C. 4321). West Virginia ...................................... 2.2 Authority To Provide Alternative
Wisconsin ........................................... 7.1 Requirements and Grant Regulatory
Catalog of Federal Domestic Assistance Wyoming ............................................. 7.1 Waivers
Number
[FR Doc. E9–27340 Filed 11–10–09; 8:45 am] Title XII of Division A of the
The Catalog of Federal Domestic American Recovery and Reinvestment
BILLING CODE 4210–67–P
Assistance Number for this program is Act of 2009 (Pub. L. 111–005, approved
14.187. February 17, 2009) appropriates
Dated: October 15, 2009. DEPARTMENT OF HOUSING AND $1 billion to carry out the CDBG
David H. Stevens, URBAN DEVELOPMENT program under Title I of the Housing
Assistant Secretary for Housing—Federal and Community Development Act of
[Docket No. FR–5355–N–01] 1974 (42 U.S.C. 5301, et seq.) on an
Housing Commissioner.
expedited basis. These funds will be
Appendix Notice of Program Requirements for
distributed to grantees that received
Community Development Block Grant
CDBG funding in Fiscal Year (FY) 2008,
OPERATING COST ADJUSTMENT Program Funding Under the American
in accordance with the provisions of 42
FACTORS FOR 2010 Recovery and Reinvestment Act of
U.S.C. 5306. The grant program under
2009: Reallocations
[U.S. Average: 4.7%] Title XII is commonly referred to as the
AGENCY: Office of the Assistant CDBG–R program. When referring to a
Alabama .............................................. 4.5 Secretary for Community Planning and provision of the appropriations statute
Alaska ................................................. 11.0 Development, HUD. itself, this notice will refer to the
Arizona ................................................ 4.3 Recovery Act; when referring to the
Arkansas ............................................. 5.3 ACTION: Notice.
California ............................................. 4.3
grants, grantees, assisted activities, and
SUMMARY: On May 5, 2009, HUD posted implementation rules, this notice will
Colorado ............................................. 3.0
Connecticut ......................................... 8.2 on its Web site its ‘‘Notice of Program use the term CDBG–R.
Delaware ............................................. 5.7 Requirements for Community Under the authority of the Recovery
District of Columbia ............................ 5.2 Development Block Grant Program Act, the Secretary may waive or specify
Florida ................................................. 1.8 Funding Under the American Recovery alternative requirements for any
Georgia ............................................... 5.7 and Reinvestment Act of 2009.’’ The provision of any statute or regulation in
Hawaii ................................................. 7.5 Notice advised the public of statutory connection with the obligation by the
Idaho ................................................... 4.5
jlentini on DSKJ8SOYB1PROD with NOTICES
and regulatory waivers granted to Secretary or the use by the recipient of
Illinois .................................................. 4.6 grantees under the American Recovery these funds, except for requirements
Indiana ................................................ 4.1
Iowa .................................................... 6.0
and Reinvestment Act of 2009 (Recovery related to fair housing,
Kansas ................................................ 3.9 Act), which made $1 billion in nondiscrimination, labor standards, and
Kentucky ............................................. 5.8 Community Development Block Grant the environment, upon a finding that
Louisiana ............................................ 3.7 (CDBG) funds available to states and such waiver is necessary to expedite or
Maine .................................................. 6.3 local governments to carry out, on an facilitate the timely use of such funds
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