Number
R13823
Version
Original
Reference
Sponsor
The Chair
Title
Resolution approving the 2027 Schedule of Utility Allowances and 2027 Schedule of Payment Standards for the Housing Choice Voucher Program, with both effective January 1, 2027
Analysis
Body
WHEREAS, each year the Housing Authority of the City of Milwaukee (HACM) is required by the U.S. Department of Housing and Urban Development (HUD) to review its Housing Choice Voucher (HCV) utility allowance schedule and revise the schedule if there has been a change of 10 percent or more in any utility rate since the schedule was last revised; and
WHEREAS, based on a third-party review of utility rates by The Nelrod Company, HACM's contractor, CVR Associates, and HACM management recommend approval by the HACM Board of Commissioners of a revised 2027 Schedule of Utility Allowances, as attached to this resolution; and
WHEREAS, HUD requires public housing authorities (PHAs) to review their payment standards annually following publication of updated Fair Market Rents (FMRs), with payment standards generally established between 90 percent and 110 percent of the applicable FMR or Small Area Fair Market Rent (SAFMR), unless otherwise authorized under HUD requirements; and
WHEREAS, HACM has established separate payment standards using SAFMRs for fifteen (15) ZIP codes within its jurisdiction to expand housing opportunities for assisted families; and
WHEREAS, HUD's published FY2027 FMRs and SAFMRs reflect significant reductions throughout the Milwaukee metropolitan area, which could increase rent burdens, limit housing choices, and negatively affect housing stability for participating families; and
WHEREAS, CVR Associates conducted a rent burden analysis of 4,312 tenant-based voucher households and determined that 2,726 households, or 63.22 percent, have a family share of rent exceeding 30 percent of adjusted monthly income, exceeding the 40 percent rent burden threshold identified in HUD Notice PIH 2024-34 for establishing exception payment standards above 110 percent, up to 120 percent of the applicable FMR or SAFMR, subject to HUD requirements; and
WHEREAS, based on this analysis, CVR Associates and HACM management recommend maintaining 104 of HACM's 112 existing payment standards for 2027, with modest reductions to the remaining eight payment standards in ZIP codes 53130 and 53224 to remain within the proposed 120 percent limit, as reflected in the attached 2027 Schedule of Payment Standards; and
WHEREAS, the proposed payment standards are intended to minimize increases in family rent burdens, preserve housing affordability, and support continued access to rental housing opportunities throughout HACM's jurisdiction; now, therefore, be it
RESOLVED, that HACM's revised Housing Choice Voucher 2027 Schedule of Utility Allowances and proposed 2027 Schedule of Payment Standards, as attached, are hereby approved, with an effective date of January 1, 2027, subject to applicable HUD requirements and approvals; and be it
FURTHER RESOLVED, that the Secretary-Executive Director is hereby authorized to submit the revised schedules, supporting rent burden analysis, and any required documentation or requests to HUD, and to take all necessary actions to implement the approved schedules in accordance with applicable federal requirements.
Requestor
Drafter
Housing Management October 27, 2026