Wednesday, June 6, 2018

MAP: HUD Voucher Zip Code Based Rents Could be Substantially Higher in Some Portland Metro Zip Codes.

HUD’s new small area rent policy allows a housing authority in a metropolitan area to selectively adopt (without requiring any HUD approval) zip code area voucher rents up to 110% of the published small area rent. (HUD's SAFMR web page with resource material is HERE.). 

I assume that even if a housing authority adopts higher zip code based voucher rents, rents for individual units will still be subject to rent reasonable determinations, so higher zip code based rents are not guaranteed for any individual unit or project. 

The trade off for housing authorities with zip code based rents are increased costs and the possibility of fewer families being served vs. increase housing metro wide housing choice for voucher families. 

Note that these SAFMR's can also be used with project based vouchers. This could provide an additional subsidy to help increase the supply of housing units with long term affordability for those very low income households served by the voucher program. (67% of all HUD assisted Oregon is assisted via the voucher program). 

Housing authorities in metropolitan areas of Oregon are not required, and may choose not to, but they do now have the authority to adopt small area rents. 

Embedded below you will see a map I created (which can also be found at this tiny URL:  

Both the link and the map show Portland metro zip codes in Oregon with the maximum allowable small area voucher rents (110% of the SAFMR 2 BR rent). that COULD be adopted by local housing authorities. (for ZIP Codes in Multnomah county Home Forward may have even more discretion as they are HUD designated Moving to Work agency).

You can click on any zip code in the map and see the 110% permissible 2 BR small area rent and the ratio that rent has to the standard 2 BR HUD FMR for the Portland metro area ($1,330).  

The zip codes in neon green have the highest permissible 2 BR rents computed at 110% of the 2 BR small area rents. Zip codes in yellow would have highest permissible 2 BR SAFMR’s that are below 100% of the standard 2 BR fair market rent. (My understanding is that housing authorities can pick and choose the zip codes in which they want to use SAFMR's). 

So for example zip code 97034 in Lake Oswego has a permissible small area 2 BR rent of $2,074 (154% of the standard PDX 2 BR FMR, and 157% of the Clackamas County adopted payment standard of $1,304). [ Apartmentlist data as of June shows the median two bedroom rent (without a utility allowance) in Lake Oswego as $1,950]

Zip code 97231, that includes Sauvie Island, has an even higher permissible rent of $2,200 (165% of the standard FMR).

Originally created and posted on the Oregon Housing Blog.

Wednesday, May 30, 2018

Thursday, May 24, 2018

My Tweet: 76% of All HUD Assisted Households are Headed by Woman; Oregon % is 70%. Data for All States, 3 Major Programs

Thursday, May 17, 2018

UPDATE: Renter Cost Burden Data for 86 Nominated Oregon Opportunity Zone Census Tracts.


I noticed last week that Oregon Business has inadvertently included one extra census tract in their listing of Opportunity Zones (96.06 in Multnomah County). After I notified State legislative staff over the weekend that census tract was removed on Monday and I have removed it from the Excel file below (and changed count of CT's from 87 to the correct count of 86).

Oregon recently nominated 86 census tracts to be designated as federal Opportunity Zones. Oregon has created a map showing those census tracts HERE.  The Oregon web page with more on Opportunity Zones is HERE

I looked at the data for census tracts eligible for nomination and I noticed there was little renter information, including renter cost burden data. 

So I cross referenced the listed census tracts with ACS 5 Year 2016 renter cost burden data and created the Excel file HERE, and embedded below, showing the renter cost burden and SEVERE cost burden counts and %'s for each of those tracts. (ACS table is B25070). 

This data may be useful in identifying areas where additional equity investments in affordable housing development and preservation could have the greatest positive cost impacts for renters. 

Originally created and posted on the Oregon Housing Blog.

Monday, May 7, 2018

Cheat Sheet: 2017-2018 Increase in 2 BR Portland Metro Rent and Income Maximums; More to Come Next Year.

On Wednesday May 9th, the Portland (Housing) Bond Oversight Committee has a planned meeting; meeting materials are HERE.

Because of recent HUD publication of FY 2018 income limits changes in maximum incomes and rents in Portland projects acquired will be substantially higher than what would have previously been permitted, increasing the universe of projects that may be available for acquisition and/or the feasibility of constructing new projects. 

The PDF document HERE and embedded below is a cheat sheet that highlights the Portland metro increase in 2BR rents and income maximums from FY 2017 to FY 2018 for 30%,50%, 60%, and 80% MFI levels.  (Other household and bedroom sizes are included, but 2017-2018 $ differences are not calculated). 

These maximums and increases are relevant to NEW inclusionary zoning projects, LIHTC projects, and Portland multifamily housing bond purchases and (likely) to the Metro wide bond issue being discussed for the November ballot. They may, subject to limits established at the state and local level, also be used to increase maximum rent levels for existing units under these programs. In all cases rents shown include utility allowances. 

The FY 2018 increases in maximum rents and incomes are substantial, with maximum 2 BR rents increasing from $45 (30% MFI) to $120 (80% MFI) a month. 

Note that because the ACS data used by HUD to calculate incomes is already available there is very likely going to be another substantial increase in Portland metro incomes (and therefore maximum allowable rents) in 2019, albeit somewhat less than the 8.9% increase from 2017 to 2018. 

Two Continuing Challenges:
  1. A continuing challenge for Bond projects will be annual tracking of incomes and rents of individual tenants to insure that tenants with substantial income increases do not occupy units intended for low income occupancy.  
  2. Since annual rent increases in Bond projects above 5% may be subjected to additional reviews at local or state levels, it will be important moving forward to capture and make available publicly the actual maximum rents for each project and unit size instead of relying on annually published Portland metro wide wide maximum rents for different income levels. 

The 60% MFI 3 person (2 BR) max annual income increased from $40,380 to $43,980 or $3,600 (pg. 2).
This means that the maximum monthly rents increased from $1,010 to $1,110 or $90 a month.  (pg. 1)

Originally created and posted on the Oregon Housing Blog