Background/Purpose of Request:
Each year, Housing and Urban Development (HUD) issues Fair Market Rents (FMR) per area, as defined by the Office of Management and Budget. Subsequently, each housing agency is required to use the published FMRs to establish payment standards that are between 90% and 110% of the FMR.
In 2014, Public Housing staff recommended a decrease of the subsidy and payment standards to increase program utilization and assist more families with the same HUD funding. Staff believed that changing the payment standards would add another twelve to twenty units, ultimately helping to reduce the existing waiting list for Public Housing Services.
Thus, on May 2014, the Board approved the request and changed the payment standards from 100% of the FMR for all units to 100% for efficiency and one-bedroom apartments and 90% for two or more bedrooms.
Staff continually monitor local rental rate, utilization of the program, and barriers. December 2018, staff requested the Board of Commissioners approve the payment standard change for two-bedroom apartments from 90% to 100% of the FMR. At that time the average rent for a two-bedroom unit was $800 per month, however the 2019 FMR was $767. The lower standard was preventing households from securing safe and affordable housing.
Rental rates in Brunswick County continue to increase making it difficult for families to find safe, affordable housing. May 2020, staff requested the Board to approve an increase of the subsidy and payment standards from 100% to 110% of the HUD Fair Market Rent for efficiency and one-bedroom units in the Housing Choice Voucher Program.
HUD recently published the 2022 FMR and, although the FMR have increased, the discrepancy between the FMR and rental rates of apartments in Brunswick County is creating a situation in which many families are unable to use their Housing Choice Voucher. Additionally, this disparity is negatively impacting the Public Housing Agency’s lease-up rate.
To ensure families issued a Housing Choice Voucher for three or more bedrooms are able to find a rental and afford the rent, the PHA recommends increasing the FMR for these units from 90% to 100% of HUD’s FMR.
If approved, the PHA FMR would be 110% for efficiency and one-bedroom units and 100% for units with two or more bedrooms. |