HUD states that “[t]he purpose of this notice is to facilitate the process for review and approval of special payments standards under the Housing Choice Voucher program as a reasonable accommodation for a family with a person with disabilities.” The notice clarifies how to calculate the special payment standard and the type of supporting documents that must be submitted with a request to waive the regular payment standard. The notice permits the 40 percent cap, normally applied only at initial occupancy, to be applied to families that need an exception or special payment standard to remain in their assisted units. [Download]

This HUD Notice, PIH 2008-12, establishes new improved policies for “over-housed” families receiving enhanced vouchers following the loss of federally subsidized housing, e.g. project-based Section 8 opt outs, prepayment of HUD-subsidized mortgages.  Prior to the issuance of this notice, if the bedroom size of a family’s unit exceeded the size that the family qualified for under the voucher subsidy standards based on family size, the family was deemed “over-housed” and if there was no “appropriately” sized unit for them to move into in the development in which the subsidy loss took place, the household would be forced to move elsewhere with less housing assistance.  This placed a burden on a great many empty-nesters and seniors.  Among other things, the Notice obligates the owner to identify all appropriately sized units for the over-housed family to move into and, if there are none, permits the family to remain in their original unit and receive a subsidy for the oversized unit until an appropriately sized unit becomes available.

HUD has posted the Fair Market Rents (FMRs) for FY 2008, which took effect October 1, 2007. The FMRs are determined for each metropolitan area and non-metropolitan county and are used to determine the respective payment standard amounts under the Section 8 Housing Choice Voucher program, and rents under certain other HUD programs.