On November 30, HUD will publish in the Federal Register a Notice establishing operating cost adjustment factors (OCAFs) for project-based assistance contracts renewed under the Multifamily Assisted Housing Reform and Affordability Act of 1997 (MAHRA). The new rates are applicable to annual renewal contracts with an Anniversary date on or after February 11, 2024. A prepublication edition of the notice, with list included, is available here.
OCAFs are established at the state level, but only three of the nine cost categories considered in the formula utilize state-level data, with other elements based on national data. State OCAFs for 2024 range from a low of 4.3 (South Dakota) to a high of 8 (Maine), with a national average of 5.3. The 2024 OCAFs are lower than 2023 in all but seven states.
Members with properties subject to these adjustment factors are encouraged to contact: email@example.com with feedback on the adequacy of the published 2024 OCAF for your properties and state.