2020 Operating Cost Adjustment Factors (OCAFs) &
Utility Allowance Adjustment Factors
for Fiscal Year 2020 have been Published
The Operating Cost Adjustment Factors (OCAFs) for fiscal year 2020 were published on November 22, 2019 in the Federal Register.
These factors are used when establishing or requesting adjustments to Section 8 rents for projects with Section 8 Housing Assistance Payments - this includes PBRA RAD contracts.
The factors are effective February 11, 2020.
The FY 2020 Multifamily Utility Allowance Factors, which may be used to adjust Utility Allowances (UA) in accordance with Housing Notice 2015-04, are also now available on HUDUser.
Please note that, in most states, the factor calls for a reduction to the Utility Allowance for Natural Gas and for Electricity. When you apply these factors, your UA could be reduced thus causing an increase in the Tenant Rent.
This makes it even more important to make sure residents are notified of your intent to request a change and that your submissions to HUD/CA are timely. In addition, once your receive approval, residents will need to be provided with appropriate notice of any change to their rent.
For CAs and HUD staff processing rent adjustments using Auto OCAF:
On November 27, the 2020 Factors will be updated in iREMS.
Please delete any Amend Rents Records - effective 02/11/2020 and beyond - that were created either automatically or manually with the old 2019 Factors.
A new record will automatically generate with the new 2020 Factor. Neither PBCAs nor submitting owners should be penalized by HUD for delays related to the late release of 2020 factors.