HUD’s responses to comments filed in response to a May 18, 2010, notice (75 FR 27808) announcing HUD’s intent to operate a small area FMR demonstration project in several metropolitan areas. The purpose of this demonstration project is to provide voucher holders with the opportunity to move to areas of greater opportunity. This notice provides additional details regarding the operation of the tenant-based Housing Choice Voucher (HCV) program in areas selected to participate in the demonstration, establishes the criteria for selecting public housing agencies (PHAs) for participation in the demonstration, and requests interested PHAs to apply for participation in the demonstration according to instructions published in this notice.
In response to the proposal, HUD received 19 comments. Several PHA administrators from non-metropolitan housing authorities were concerned about the increased administrative burden and covering the costs of portability when a small area FMR is significantly higher than the current wide-area FMR. HUD, dismissed the first concern by noting that if small area FMRs were introduced on a larger scale, non-metrpolitan counties would not be included in the program. HUD addressed the second concern by pointing out that portability is already a feature of the HCV program and that “the extent to which small area FMRs would make this issue [funding replacement] a larger problem is not clear.
