Powerpoint: Small Area Fair Market Rent Demonstration Project

Overview of Small Area FMRsWhy Make This Change? – What We Hope to Accomplish Provide tenants with greater ability to move into “OpportunityNeighborhoods” Jobs, Transportation, Good Schools Multiple Payment Standards in a Metro Area Reduce undue subsidy in lower-rent areas

Brief History of Small Area FMRs Secretary Donovan Challenges PD&R to find a more localizedway of calculating FMRs PD&R developed SAFMRs using Census Data On May 18, 2010 HUD requested public comment on themethodology and further announced the intention to run ademonstration

Brief History of Small Area FMRs, cont’d HUD responded to original comments and requested PHAvolunteers in an April 20, 2011 Federal Register Notice Four PHAs requested participation – during vetting process 3PHAs asked to be removed from consideration Overwhelming reason for non-applications and removalrequests was due to lack of funding Volunteer Demonstration Stalled

Current Status of Demonstration PD&R received approval to reprogram T.I. funds to run aSmall Area FMR Demonstration – Funds to be obligated by9/30/12 OEA used this opportunity to re-engineer demonstration sothat outcomes can be more scientifically assessed Randomly Selected PHAs will be drafted but given opportunityto decline Accepting PHAs will be eligible for SupplementalAdministrative Fees to offset necessary expenses ofparticipation