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ICP v. HUD Small Area FMRs

ICP Comment on HUD, "Establishing a More Effective Fair Market Rent System; Using

Small Area Fair Market Rents in Housing Choice Voucher Program Instead of the Current 50th

Percentile FMRs," 81 Fed. Reg. 39218 (June 16, 2016), Docket Number FR-5855-P-02

ICP comment on Docket Number FR-5855-P-02

This ICP comment supports the required use of SAFMRs as a remedy for racial segregation in the voucher program. However, HUD’s proposal to limit the areas for SAFMR designation using arbitrary and artificial formulas will perpetuate racial segregation. ICP’s comment sets out in detail the objections to the HUD proposed method for designating areas for SAFMR use.

ICP v. HUD - Complaint

ICP v. HUD- First Amended Complaint

Guidance for preparing comments on Small Area FMRs

             For the first time HUD is making available guidance for allowing 40% of the units in a zip code to be made available with its Small Area FMRs (SAFMR). The Guidance on HUDUSER at this link allows a commenter to follow the steps using HUD Zip Code Tabulation Area (ZCTA) Distribution data (available at this link from HUD) and see the percentage of 2 BR units made available with HUD’s proposed SAFMRs. The HUD Guidance provides step by step instructions on how to perform the analysis in order to comment to HUD on the units made available with HUD’s proposed SAFMR for a particular ZCTA.
If a proposed SAFMR for a ZCTA does not make 40% of the units available a commenter can point this out to HUD and HUD will adjust the SAFMR upward for that ZCTA to make 40% of the units available. This opens up additional units in high opportunity areas with low poverty and opportunity for jobs and education. In addition, if a HUD proposed SAFMR for a ZCTA makes over 40% of the units available which is usually the case in ZCTAs in racially concentrated areas of poverty, the guidance allows a commenter to point this out to HUD. HUD will then adjust the SAFMR to lower it to make only 40% of the units in that ZCTA available.
For assistance on using the Guidance please contact us.