HUD RELEASES 2011 ANNUAL ADJUSTMENT FACTORS
The U.S. Department of Housing and Urban Development (HUD) yesterday published fiscal year 2011 Contract Rent Annual Adjustment Factors (AAFs) in the Federal Register and on the agency's web site. Owners participating in Section 8 housing assistance payment programs, including New Construction, Substantial Rehabilitation and Moderate Rehabilitation programs; Loan Management and Property Disposition programs; and the Project-Based Certificate program are required to provide annual adjustment to monthly rentals for units under the contract. AAFs are used to adjust rents for units during the initial term of the housing assistance program contract and for all units in the Project-Based Certificate program. The factors are based on a formula using residential rent and utility cost changes from the latest annual Bureau of Labor Statistics Consumer Price Index survey.