77124 Federal Register / Vol. 80, No. 238 / Friday, December 11, 2015 / Notices DEPARTMENT OF HOUSING AND The FY 2016 FMRs incorporate a Peter B. Kahn, Economic and Market URBAN DEVELOPMENT change in the level of statistical Analysis Division, Office of Economic reliability that allowed for an ACS Affairs, Office of Policy Development [Docket No. FR–5885–N–02] estimate to be used in the calculation of and Research, telephone 202–402–2409. FMRs. Previously, if the error of the Persons with hearing or speech Final Fair Market Rents for the Housing estimate was less than the estimate impairments may access this number Choice Voucher Program and itself, HUD used the estimate. The FY through TTY by calling the toll-free Moderate Rehabilitation Single Room 2016 FMRs use ACS estimates where Federal Relay Service at 800–877–8339. Occupancy Program and Other the size of the error is limited to half of (Other than the HUD USER information Programs Fiscal Year 2016 the estimate. An additional change to line and TDD numbers, telephone AGENCY: Office of the Assistant the FY 2016 FMRs is the incorporation numbers are not toll-free.) Secretary for Policy Development and of the February 28, 2013, Office of Electronic Data Availability: This Research, HUD. Management and Budget (OMB) Federal Register notice is available metropolitan area definition update electronically from the HUD User page ACTION: Notice of Final Fiscal Year (FY) based on the 2010 Decennial Census at http://www.huduser.gov/portal/ 2016 Fair Market Rents (FMRs). data. The 2013 ACS data are the first to datasets/fmr.html. Federal Register SUMMARY: Section 8(c)(1) of the United use the new area definitions in the notices also are available electronically States Housing Act of 1937 (USHA) compilation of the ACS data. Bedroom at https://www.federalregister.gov/, the requires the Secretary of HUD to publish ratios (comparing zero-, one-, three- and Federal Register Web site. Complete FMRs periodically, but not less than four-bedroom rents to the two-bedroom documentation of the methodology and annually, adjusted to be effective on base rent) were updated from the 2010 data used to compute each area’s final October 1 of each year. The primary estimations using a three-year average of FY 2016 FMRs is available at http:// uses of FMRs are to determine payment five-year ACS data. www.huduser.gov/portal/datasets/ standards for the Housing Choice DATES: Effective Date: The FMRs fmr.html through the link labeled Voucher (HCV) program; to determine published in this notice are effective on ‘‘Individual Area Final FY 2016 FMR initial renewal rents for some expiring the date of publication. Documentation.’’ Final FY 2016 FMRs project-based Section 8 contracts; to FOR FURTHER INFORMATION CONTACT: For are available in a variety of electronic determine initial rents for housing technical information on the formats at http://www.huduser.gov/ assistance payment contracts in the methodology used to develop FMRs or portal/datasets/fmr.html. FMRs may be Moderate Rehabilitation Single Room a listing of all FMRs, please call the accessed in PDF format as well as in Occupancy program; and, to serve as HUD USER information line at 800– Microsoft Excel. A new HUD User page rent ceilings for rental assistance units 245–2691 or access the information on has been developed for Small Area in the HOME Investment Partnerships the HUD USER Web site http:// FMRs and those based on final FY 2016 program. FMRs are used in the www.huduser.gov/portal/datasets/ Metropolitan Area Rents and historical calculation of maximum award amounts fmr.html. FMRs are shown at the 40th versions of this data will be on this site for Continuum of Care grantees and are or 50th percentile in Schedule B. For http://www.huduser.gov/portal/ used in the calculation of flat rents in informational purposes, the 40th datasets/fmr/smallarea/index.html and Public Housing units. Today’s notice percentile recent-mover rents for the there is a link from the FMR page of provides final FY 2016 FMRs for all areas with 50th percentile FMRs will be HUD User http://www.huduser.gov/ areas that reflect the estimated 40th and provided in the HUD FY 2016 FMR portal/datasets/fmr.html. Please note 50th percentile rent levels trended to FY documentation system at http:// that these Small Area FMRs are for 2016. The FY 2016 FMRs use rent data www.huduser.gov/portal/datasets/fmr/ reference only, except where they are collected by Bureau of the Census by the fmrs/docsys.html?data=fmr16 and the used by public housing authorities American Community Survey (ACS). 50th percentile rents for all FMR areas (PHAs) participating in the Small Area This rent data is collected over a five- will be published at http:// FMR demonstration and for PHAs year period, from 2009 through 2013. www.huduser.gov/portal/datasets/ investigating an alternative basis for These data are updated by one-year 50per.html after publication of final FY Public Housing flat rents. With approval 2013 ACS data for areas where 2016 FMRs. Unadjusted rents (rents from the Housing Voucher Management statistically valid one-year ACS data is calculated directly from ACS data prior Division of the Office of Public and available. HUD continues to use ACS to the application of state minimum Indian Housing (PIH) these Small Area data in different ways according to the rents) will be made available at: http:// FMRs may be used in the process of statistical reliability of rent estimates. www.huduser.gov/portal/datasets/ determining exception payment The Consumer Price Index (CPI) rent fmr.html. These rents may be used in standards. and utility indexes are used to further conjunction with the calculation of flat SUPPLEMENTARY INFORMATION: update the data to 2014. These values rents in the Public Housing program. are then trended forward to FY 2016. Additionally, Small Area FMRs, which I. Background Based on the comments received and as may also be used as the basis for Public Section 8 of the USHA (42 U.S.C. way to estimate FMRs more accurately, Housing flat rents as an alternative to 1437f) authorizes housing assistance to HUD has replaced the historical-based metropolitan wide FMRs, are available aid lower-income families in renting annualized change in gross rent trend at: http://www.huduser.gov/portal/ safe and decent housing. Housing factor with a forward-looking forecast datasets/fmr/smallarea/index.html. assistance payments are limited by for these final FY 2016 FMRs. The Questions related to use of FMRs or FMRs established by HUD for different national trend factor for the final FY voucher payment standards should be geographic areas. In the HCV program, 2016 FMRs uses a model that forecasts directed to the respective local HUD the FMR is the basis for determining the national rent and utility CPI indices program office. Questions on how to ‘‘payment standard amount’’ used to based on economic assumptions used in conduct FMR surveys or concerning calculate the maximum monthly the formulation of the President’s further methodological explanations subsidy for an assisted family (see 24 Budget. may be addressed to Marie L. Lihn or CFR 982.503). In general, the FMR for VerDate Sep<11>2014 18:09 Dec 10, 2015 Jkt 238001 PO 00000 Frm 00002 Fmt 4701 Sfmt 4703 E:\FR\FM\11DEN2.SGM 11DEN2 tkelley on DSK3SPTVN1PROD with NOTICES2 Federal Register / Vol. 80, No. 238 / Friday, December 11, 2015 / Notices 77125 an area is the amount that would be 24 CFR 888.115.) For FY 2016 FMRs, be considered for the 50th percentile needed to pay the gross rent (shelter HUD has considered all comments FMR program for three years. One area, rent plus utilities) of privately owned, submitted in response to its September New Haven-Meriden, CT HUD Metro decent, and safe rental housing of a 8, 2015 (80 FR 53819) proposed FY 2016 FMR Area (HMFA), that was evaluated modest (non-luxury) nature with FMRs and includes its responses to graduated from the program; this area suitable amenities. In addition, all rents these comments in this notice. will be re-evaluated each year. This is subsidized under the HCV program In addition, HUD’s regulations at 24 a different result for the Baltimore- must meet reasonable rent standards. CFR 888.113 set out procedures for HUD Columbia-Towson, MD Metropolitan HUD’s regulations at 24 CFR 888.113 to assess whether areas are eligible for Statistical Area (MSA) than in the require the Department to establish 50th FMRs at the 50th percentile. Minimally proposed FY 2016 FMRs, where percentile FMRs for certain areas. qualified areas 1 are reviewed each year deconcentration was not measured. unless not eligible to be reviewed. Areas After reviewing the data in response to II. Procedures for the Development of that currently have 50th percentile comments, it was discovered that areas FMRs FMRs are evaluated for progress in up for re-evaluation were not afforded a Section 8(c)(1) of the USHA requires voucher tenant concentration after three full three annual time-periods to the Secretary of HUD to publish FMRs years in the program. Continued deconcentrate. A re-evaluation of all periodically, but not less frequently eligibility is determined using HUD’s areas using three annual time-periods than annually. Section 8(c)(1) states, in administrative data that show levels of resulted in the continuation of the part: voucher tenant concentration. The Baltimore metropolitan area in the 50th Proposed fair market rentals for an area levels of voucher tenant concentration percentile FMR program; Fort shall be published in the Federal Register must be above 25 percent and show a Lauderdale and Richmond, even with with reasonable time for public comment and decrease in concentration since the last the additional year, did not exhibit shall become effective upon the date of evaluation.