Interested in becoming a member? 614.481.6949

HUD's 2013 Operating Cost Adjustment Factors

HUD published its “Notice of Certain Operating Cost Adjustment Factors for 2013” in the Federal Register.

The notice establishes operating cost adjustment factors (OCAFs) for project based assistance contracts for eligible multifamily housing projects having an anniversary date on or after February 11, 2013. OCAFs are annual factors used to adjust Section 8 rents renewed under section 524 of the Multifamily Assisted Housing Reform and Affordability Act of 1997 (MAHRA). The U.S. average OCAF for 2013 is 2.1 percent. It is higher than the U.S. average OCAF for 2012, which was 1.8 percent.

The OCAFs provided in the notice are calculated using  the same method as those published in HUD’s 2012 OCAF notice published on October 26, 2011 (76 FR 66319). Specifically, OCAFs are calculated as the sum of weighted average cost changes for wages, employee benefits, property taxes, insurance, supplies and equipment, fuel oil, electricity, natural gas, and water/sewer/trash using publicly available indices.

The weights used in the OCAF calculations for each of the nine cost component groupings are set using current percentages attributable to each of the nine expense categories. These weights are calculated in the same manner as in HUD’s October 26, 2011, notice. Average expense proportions were calculated using three years of audited Annual Financial Statements from projects covered by OCAFs. The nine cost component weights were calculated at the state level, which is the lowest level of geographical aggregation with enough projects to permit statistical analysis.

The 2013 OCAFs and more information about how they were calculated may be found here:

Leave a Reply