The Department of Housing and Urban Development (HUD) has issued a notice for new operating cost adjustment factors (OCAFs) that will be used to update rent for certain multifamily housing projects with section 8 contracts, effective from February 11, 2025. These factors help adjust rents by considering changes in operating costs like electricity, wages, and insurance. HUD is also asking the public for input on changes to the OCAF calculation method, like using state-level insurance data, which aims to better reflect recent increases in property insurance costs. Public comments must be submitted by January 10, 2025, through designated electronic or mail methods.
Simple Explanation
The government wants to make sure people living in certain apartment buildings pay the right rent, so they are changing how they figure out those rents, starting in 2025. They are using new ways to check costs like insurance and asking people for ideas on how to do it better.