HUD announced fiscal year 2018 Annual Adjustment Factors (AAFs) for adjustment of contract rents on the anniversary of those assistance contracts for months beginning after November 8, 2017. The factors are based on a formula using residential rent and utility cost changes. AAFs established in the attached notice are used to adjust contract rents for units in certain Section 8 housing assistance payment programs during the initial term of the HAP contract and for all units in the Project-Based Certificate program:
- The Section 8 New Construction, Substantial Rehabilitation, and Moderate Rehabilitation programs;
- The Section 8 Loan Management (LM) and Property Disposition (PD) programs; and
- The Section 8 Project-Based Certificate (PBC) program
AAFs are not used for budget-based rent adjustments; to determine renewal rents after the expiration of the original HAP contract; or to adjust rents in Tenant-Based or the Project-Based Voucher programs.