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Press RoomNAHRO
Statement on HUD Release of FY 2005 Fair Market Rents; Large Families
Still Face Uncertainty under New Regulations Contact: Liz Hennessy, 202-289-3500 ext. 280 or lhennessy@nahro.org WASHINGTON, Oct. 1 - The following is a statement of National Association of Housing and Redevelopment Officials (NAHRO) Executive Director Saul Ramirez on today's publication of FY 2005 Fair Market Rents (FMRs) by the Department of Housing and Urban Development (HUD). "NAHRO is pleased that HUD has withdrawn a controversial aspect of its proposed fiscal year 2005 fair market rents, but we remain concerned about other aspects of the FMRs, which go into effect today. "NAHRO, working with several other housing industry leaders, petitioned HUD to reconsider the proposed fair market rents it published in August. Our chief concerns included the use of new area definitions promulgated by the Office of Management and Budget, the lowering of FMRs for families needing a large number of bedrooms and the elimination of state minimum fair market rents. "We are pleased that HUD has chosen not to adopt OMB's proposed area definitions. We believe the current area definitions, which have been used for the past ten years, properly established the housing market areas on which fair market rents should be determined. FMRs are used to establish rents for the Section 8 Housing Choice Voucher program and several other essential programs that provide affordable housing for the elderly and disabled; it is crucial that they accurately reflect rental rates in local housing markets. "Despite these actions, however, there will be areas in which rents are lower that what is necessary to support low-income families seeking decent, safe and affordable housing. We urge the department to take whatever measures necessary and to remain open to receiving data that supports the need for higher FMRs in certain areas. "NAHRO is particularly concerned about two remaining elements of the FY 2005 FMRs: deflated adjustment factors for housing units with three or more bedrooms and the elimination of state minimum fair market rents. These changes from FY 2004 FMRs will particularly affect families in big cities and in rural areas, respectively. "It is unfortunate that HUD chose to lower FMRs for large families and eliminate state minimum FMRs. As a result of eliminating the minimum rent levels, low-income families in rural counties will face increased obstacles in securing quality affordable housing. "The new methodology will lower voucher amounts for units with more than three bedrooms and will be especially problematic for families living in big cities. There is already great demand for affordable large-bedroom units; in fact, 37 percent of all voucher-assisted units are three bedroom units or larger. Lowering FMRs for large families contradicts HUD's goals to further mixed-income communities and stimulate regional economic revitalization. According to HUD's own 2000 survey, households with five or more members had low probability of successfully leasing housing with their voucher - only 67 percent. The study also found that less than half of all voucher holders were successful in finding a unit in the 15 largest cities in the country. "The method HUD has used to determine state minimums and FMRs for large families for the last ten years has served urban and rural low-income families well. We urge the department to return to this methodology and are committed to working with both the department and Congress to ensure that resources needed to meet the growing demand for affordable housing remain available."
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