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HUD is seeking comments on a newly proposed methodology for deriving an inflation factor that will be used to adjust HUD programs annually for inflation. If adopted, the proposed methodology will be used to annually adjust funding for numerous HUD programs, including Public Housing, HCV, Section 8 Moderate Rehabilitation, Section 8 PBRA, CDBG, CoC, ESG, HOME, HOPWA, HTF, Section 202, Section 236, Section 811, and others. Comments will be due on Friday, May 17. CLPHA recently wrote to The White House expressing concern about negative impacts that could occur if the methodology results in renewal funding amounts that are too low. CLPHA’s letter urged that the inflation factor methodology not be too heavily based on the Consumer Price Index (CPI) and should give stronger weight to Per-Unit Costs and Fair Market Rents (FMRs). The proposed methodology will be primarily derived from the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W). HUD proposes to compare an average of three months of CPI-W index values from one year to the next, to calculate the Inflationary Factor. Once final, the methodology will be published in the Federal Register. Going forward, HUD will solicit public comment only if the Department proposes to change the methodology. Around August each year, HUD will calculate the inflation factor, recalculate the inflation-adjusted values, and post the revised figures effective for the next calendar year. The revised amounts will become effective on January 1st of each year. The amounts effective January 1, 2024, were published in the HOTMA final rule. |
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