2023 Operating Cost Adjustment Factors (OCAFs) Published
Today, HUD published the attached Notice establishing the 2023 Operating Cost Adjustment Factors (OCAFs) for project-based assistance contracts issued under Section 8 of the United States Housing Act of 1937 and renewed under MAHRA for eligible multifamily housing projects having an anniversary date on or after February 11, 2023. HUD is also soliciting public input on two proposed technical changes to its OCAF calculation method.Request for Member Feedback on Proposed Changes to OCAF Methodology
As stated in the Notice, HUD seeks public input on two (2) proposed technical changes to its OCAF calculation method:
- Vintage of data.
***Note: To provide for OCAFs that are relatively generous in 2023, given historically high inflation levels, HUD calculated the cost component inflation factor for most of the cost components using a time period that exceeds 1 year. HUD used the most recent available data at the time of calculation for the numerator. For the denominator, HUD used the figure for the time period that was used in the calculation of the 2022 OCAFs. Going forward, HUD will revert to using year-over-year data for each component, subject to data availability.***
- Insurance component data source.
With respect to these proposed changes to OCAF methodology, HUD will consider all comments submitted by December 15, 2022. Unless HUD receives comment that would lead to the reconsideration of these proposed changes, the changes will become effective on February 11, 2023. If HUD receives adverse comment that leads to reconsideration, HUD will notify the public via a revised notice issued immediately following the close of the comment period. NAHMA members can provide feedback to me or Michal, by Wednesday, December 13.
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