Monday, December 21, 2015

7 Oregon Difficult to Develop Zip Codes May ALSO Qualify for Higher Exception Rents for Voucher Holders.

I have mashed together a series of data sources that were just updated in December:
  • Fiscal year 2016 HUD final fair market rents.
  • Fiscal year 2016 Oregon Difficult to Develop ZIP Codes.
  • 2016 HUD small Area/zip code "hypothetical" rents.
  • ACS 2010 to 2014 poverty rates for Oregon ZIP Codes.
The results
13 Oregon metro Zip Codes may qualify for local HUD office approval of [voucher] exception rents up to 120% of their local metro FMR because they have poverty rates below 10% AND a 2BR small area rent that was above 110% of the 2 BR fair market rent for their metro area. Requests for exception rents are the discretion of the PHA and the local HUD office has discretion to approve. [My prior 2012 post HERE has more background on the HUD exception rent regulation, including similar data using the 2009-2011 ACS

Among those 13 metro Oregon zip codes with both low poverty rates and small area rents that were at above 110% of the local fair market rent there were 7 metro zip codes that ALSO qualify as metro difficult to develop areas for the Low Income Tax Credit program. 

The PDF file HERE includes a listing of all 13 Oregon metro zip codes that may qualify for exception rents up to 120% of the local FMR that are within the authority of the local HUD field office to approve AND [on page 3] a breakout of the 7 zip codes that may qualify for exception rents AND are difficult to develop areas for the LIHTC program. 

The potential for higher rents for voucher tenants and the LIHTC basis boost provided by the difficult to develop designation may improve the feasibility of housing development/preservation in those zip codes. 

Originally created and posted on the Oregon Housing Blog.

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