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HUD Sets 2016 Operating Cost Adjustment Factors

Friday, October 9, 2015 - 8:15AM

In the Oct. 13 Federal Register, the U.S. Department of Housing and Urban Development (HUD) will publish a notice establishing the operating cost adjustment factors (OCAFs) for project-based assistance contracts for eligible multifamily housing properties that have an anniversary date on or after Feb. 11, 2016. The factors are used to adjust Section 8 rents in housing assistance payment contracts renewed under Sections 515 and 524 of the Multifamily Assisted Housing Reform and Affordability Act of 1997. OCAFs are calculated as the sum of weighted average cost changes for wages, employee benefits, property taxes, insurance, supplies and equipment, fuel oil, electricity, natural gas and water/sewer/trash. The 2016 OCAFs are effective Feb. 11, 2016.

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