Background/Purpose of Request:
Each year, Housing and Urban Development (HUD) issue 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 in 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, in 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 rates, 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 have continued 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.
October 2021, the Board approved the staff’s request to change the payment standard for three or bedroom units from 90% to 100% of the FMR. As of that date, Brunswick County’s HCV payment standards for the Housing Choice Voucher program are 110% of the FMR for efficiency and one-bedroom units and 100% of the FMR for two or more-bedroom units.
HUD published the 2022 FMR and, although the FMR has increased, the discrepancy between the FMR and rental rates in Brunswick County continues to create 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 can lease up, the PHA recommends increasing the payment standards for all units to 110% of the FMR. Additionally, staff request approval to adjust the payment standards that are between 90% and 110% for the fair market rents as needed to meet the needs of participants.
Staff recommends approval of the Public Housing Payment Standard Plan. |