New HUD Calculation Doubles Annual Budget Increase

New HUD Calculation Doubles Annual Budget Increase

After advocacy from LeadingAge and others, HUD proposed a change in the calculation of Operating Cost Adjustment Factors (OCAFs) for 2023, improving budgets for affordable housing communities. OCAFs are annual factors used to adjust project-based Section 8 rents annually, including rents in Section 202/8s, based on market-driven cost components. LeadingAge advocated for changes to HUD’s budget-setting approach based on general inflation and rising insurance costs; the new annual increase rate for 2023 is projected to be double that of 2022. HUD is currently accepting comments for 30 days on the proposed changes to the OCAF calculation. Unless HUD receives comments that would lead to the reconsideration of these proposed changes, the changes will become effective on February 11, 2023.

More information is available here.





Alyssa Odegaard – Vice President, Public Policy 
cell: 206-948-2279

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November 22, 2022