2010 Annual Adjustment Factors Now Available

The Contract Rent Annual Adjustment Factors (AAFs) for 2010 have been published by HUD in the Federal Register. Annual rent adjustments are required for housing units receiving assistance under Section 8 of the U.S. Housing Act of 1937. HUD develops the AAFs based on changes in residential rent and utility costs derived from Consumer Price Index survey data.

Contract rent AAFs are used to adjust contract rents for units assisted in certain Section 8 housing assistance payment programs during the initial term of the housing assistance program (HAP) contract and for all units in the project-based certificate program. The three categories of Section 8 programs that use the contract rent AAFs include:

• Section 8 new construction, substantial rehabilitation, and moderate rehabilitation;
• Loan management and property disposition; and
• Section 8 project-based certificate.

For 2010, HUD also published Renewal Funding AAFs, but these are not applied to contract rents; they are applied to Public Housing Agency leasing and cost data, and to deter PHA renewal funding.

To review the 2010 AAFs, which are effective February 10, see FR-5391-N-01 or go to

www.huduser.org/portal/datasets/aaf.html.