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...
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