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HUD Issues SAFMR Guidance

On November 15, HUD published Notice PIH 2023-32: Small Area Fair Market Rent Implementation Guidance for FY2024 Designated Metropolitan Areas. This short notice is a consolidated version of the Federal Register Notice published October 25, 2023 (see the current Advocate for more).

The notices provide information on the following HUD actions:

  • Designates 41 additional Metropolitan Areas where the zip-code based SAFMRs are required to be the basis of local payment standards. Payment standards based on the SAFMRs must be implemented on January 1, 2025, giving agencies over a year to prepare.&
  • Modifies Notice PIH 2023-07 on FY 23 HCV funding to add an automatic $10,000 HCV administrative special fee for programs operating in newly designated mandatory areas. See Part 6. c. Subsection D. ii. Newly Designated Mandatory SAFMRs on page 18 for a description of the funding and eligible activities. Note that additional special fees are available by request from agencies considering opting-in to SAFMRs or a SAFMR-Based Exception Payment Standard under Subsection D.i. starting on page 16.
  • Promises to update Notice PIH 2018-01: Guidance on Recent Changes in Fair Market Rent (FMR), Payment Standard, and Rent Reasonableness Requirements in the Housing Choice Voucher Program, which remains in effect. HUD highlights that the Opt-in Requirements of this notice are still applicable, and notes that “HUD does not anticipate making substantive changes to subsequent guidance that would impact a PHA’s SAFMR implementation.”

PHADA has already begun to hear from impacted members, and members with questions or concerns can contact: dweber@phada.org, or: policy@phada.org. Further discussions will occur at PHADA’s 2024 Commissioners’ Conference, January 7–10, in San Diego, CA. We hope to see you there!

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