HUD Publishes FY 2023 OCAF's: Oregon OCAF is 5.6%, Above Last Years 3.2% AND the 25 Year Average of 3.1%.

Thanks to heads up from Novogradac HERE I learned today that HUD is scheduled to publish tomorrow a notice of state level Operating Costs Adjustment Factors (OCAF's) used to adjust annual rents in HUD project based rental assistance. The notice permits comments up to December 15, 2022. 

I incorporated the FY 2023 OCAF's with a table pasted below that shows a 25 year history of HUD OCAF's in Oregon. 

The table shows 

The OCAF increased from 3.2% last year to 5.6% for 2023--that is still below the national rate of 6.1%

That 2023 rate is 80% more than the Oregon 25 year OCAF average of 3.1%. 

The highest OCAF for Oregon was 7.9% in 20o9 and the lowest was 2% in 2012.

 2023 ranks as the third highest in the last 25 years.

A higher OCAF can drive higher contract rent increases for HUD MF assisted units/projects. This in turn increases the need for additional HUD subsidy, as tenant contributions for rent (based on their income) should remain the same. 

Originally created and posted on the Oregon Housing Blog.