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HUD Establishes 2024 OCAFs: National Rate is 5.3%, States Range from 4.3% to 7.1%

Wednesday, November 29, 2023 - 8:23AM

The U.S. Department of Housing and Urban Development will publish a notice in Thursday’s Federal Register establishing operating cost adjustment factors (OCAFs) for eligible multifamily housing properties with an anniversary date on or after Feb. 11, 2024. The national OCAF is 5.3% and the state rates vary from 4.3% in South Dakota to 7.1% in Connecticut. The nationwide rate is a drop from the 6.1% OCAF increase in 2023. OCAFs are calculated as the sum of component cost changes for nine components and are used to adjust Section 8 rents renewed under Section 515 or Section 524 of the Multifamily Assisted Housing Reform and Affordability Act of 1997.

The economics of affordable housing properties will be a focus of the Novogradac 2024 Affordable Housing Developers Conference, Jan. 18-19, 2024, in Fort Lauderdale, Florida.

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