Section 8 Housing Assistance Payments Program - Renewal Funding FY 2011 Annual Adjustment Factors

On May 10, 2011, HUD published PHAs’ Annual Adjustment Factors for purposes of their respective FY 2011 renewal funding.  The final appropriations law for FY 2011 continues the requirement for HUD to provide renewal funding for each Public Housing Agency (PHA) based on Voucher Management System (VMS) leasing and cost data for the most recent Federal fiscal year (i.e. October 1, 2009 – September 31, 2011) and by applying the most recent Annual Adjustment Factors as established by the Department. 

For units located in metropolitan areas with a local CPI survey, Renewal Funding AAFs are listed separately.  For units located in areas without a local CPI survey, the metropolitan or nonmetropolitan counties receive the regional CPI for that Census Region.  To make certain that they are referencing the correct Renewal Funding AAFs, PHAs should first refer to the Area Definitions Table at: http://www.huduser.org/portal/datasets/aaf/FY2011_AreaDef.pdf which lists areas in alphabetical order by state.  The table establishing Renewal Funding AAFs is available electronically from the HUD data information page at:  http://www.huduser.org/portal/datasets/aaf/FY2011_RF_table.pdf.

The associated CPI region is shown next to each state name.  Areas whose Renewal Funding AAFs are determined by local CPI surveys are listed first.  All metropolitan areas with local CPI surveys have separate Renewal Funding AAF schedules and are shown with their corresponding county definitions or as metropolitan counties.  In the six New England states, the listings are for counties or parts of counties as defined by towns or cities.  The remaining counties use the CPI for the Census Region and are not specifically listed on the Area Definitions Table.  Puerto Rico and the Virgin Islands use the South Region Renewal Funding AAFs.  All areas in Hawaii use the Renewal Funding AAFs identified in the Table as “STATE:  Hawaii,” which are based on the CPI survey for the Honolulu metropolitan area.  The Pacific Islands use the West Region Renewal Funding AAFs.  

The Renewal Funding AAFs use the same methodology as the FY2010 Renewal Funding AAFs but differ from historical AAFs and the FY2011 Contract Rent AAFs in that they make use of more recent semi-annual CPI indexes in place of average annual CPI indexes.  The Renewal Funding AAFs have been developed to account for relative differences in the recent inflation of rents among different areas and are used to allocate HCV funds among PHAs.  HUD is reviewing and updating the methodologies for all program parameters, including Fair Market Rents (FMRs), AAFs, and other inflation indices.  The publication of these separate Renewal Funding AAFs for allocation of voucher funds is an interim step toward more complete reforms including using more recent data in HUD’s estimations for various program parameters, including FMRs, as published in the Federal Register on October 4, 2010 (75 FR 61254). 

On March 16, 2011, HUD published Contract Rent AAFs in the Federal Register at: http://www.nahro.org/blogs/section-8-housing-assistance-payments-program%E2%80%94contract-rent-annual-adjustment-factors-aafs-fis

Date of Publication:  May 10, 2011

Effective Date:  May 10, 2011

View the notice here.