In an email from the Financial Management Center (FMC) on December 29, HUD announced that a federal district court has issued an order setting aside the suspension of the small area FMR (SAFMR) final rule. The rule, which impacts 24 metropolitan areas, was originally scheduled for implementation on January 1, 2018. On August 11 HUD announced that it had suspended mandatory implementation for two years, until January 1, 2020. A complaint filed in October by a Connecticut non-profit corporation resulted in a preliminary injunction setting aside the suspension.
The following is the full text of HUD’s December 29 email:
Dear Executive Director,
On December 23, 2017, a Federal District Court in Washington issued an Order in OCA vs. Carson (https://ecf.dcd.uscourts.gov/cgi-bin/show_public_doc?2017cv2192-29) setting aside the Secretary’s August 23rd suspension of the SAFMR Rule (https://www.huduser.gov/portal/datasets/fmr/fmr2016f/SAFMR-Final-Rule.pdf). Accordingly, this means that the implementation date is January 1, 2018. While HUD understands that some PHAs will be at a serious disadvantage regarding immediate implementation due to the suspension, PHAs must immediately take all steps necessary with respect to dedicating monetary and human resources towards the implementation; as well as integrating the new FMR requirements in any planning the PHA conducts. As expeditiously as possible, HUD will issue guidance addressing implementation issues, technical assistance, and potential obstacles to implementation.
PHAs affected by this requirement must put together a new payment schedule that includes individual payment standards for each zip code. Our team of FMR experts is ready to take on that project for you, creating a new, compliant payment schedule without any additional workload for your staff. Click here to learn more