HUD has published the 2005 Proposed Fair Market Rents. 69 Fed. Reg. 59004 (10/1/04). The 2005 FMRs went into effect on October 1, 2004. The 2005 FMRs vary dramatically from the 2004 FMRs and may dramatically impact the voucher program. In general, the FMR for an area is the amount that would be needed to pay the gross rent (shelter rent plus utilities) of privately owned, decent, and safe rental housing of a modest nature. FMRs are gross rent estimates. FMRs must be both high enough to permit a selection of units and neighborhoods, through the setting of the payment standard, and low enough to spread assistance among as many low-income families as possible, rent reasonableness test. The "payment standard amount" is the maximum amount the PHA will pay for an assisted family a unit. The FMRs are used to calculate the 'payment standard." "The PHA may establish the payment standard amount for a unit size at any level between 90 percent and 110 percent of the published FMR for that unit size." 24 CFR 982.503. Lower FMRs require that PHAs lower their payment standard. In addition, all rents subsidized under the voucher program must meet reasonable rent standards which are impacted by the FMR. The New FMRS will have two primary effects:

* Where the proposed FMRs are significantly lower than current FMRs: The following list from the Center on Budget and Policy Priorities shows those Georg counties where the PHAs currently have a payment standard of 100 percent of the 2004 FMR and who will not be able to maintain that level of payment even if they were to raise their payment standard to the maximum 110 percent of 2005 FMR. This means that new participants and families moving to new units will likely face paying a greater share of their income to use their vouchers. The following counties in Georgia fall into this group: Appling, Atkinson, Bacon, Ben Hill, Berrien, Bibb,Bleckley, Bulloch, Calhoun,Candler, Charlton, Chattooga, Clarke, Clay, Clinch, Coffee, Colquitt, Columbia, Crisp, Dodge, Early, Elbert, Emanuel, Evans, Glascock, Grady, Greene, Irwin,Jeff Davis, Jefferson, Jenkins, Jones, Lincoln, Madison, McDuffie, Mitchell, Montgomery, Oconee, Peach, Pulaski, Putnam, Quitman, Randolph, Richmond, Screven, Stephens, Stewart, Taliaferro, Tattnall, Telfair, Toombs, Treutlen, Twiggs, Warren, Washington, Wheeler, Whitfield, Wilcox, Wilkes.

* Counties That Will Experience at Least a 5% Decrease in FMR for Any Bedroom Size: According to current HUD regulations, housing agencies must redetermine rent reasonableness anytime there is a published decrease of five percent in the FMR 60 days before the contract anniversary. 24 C.F.R. § 982.507. The following list provided by the Center on Budget and Policy Priorities shows counties where the PHA will have to redetermine rent reasonableness for all contracts up for renewal beginning December 1, 2004. The are: Appling, Atkinson County, Georgia, Bacon, Baldwin, Ben Hill, Berrien, Bibb, Bleckley, Bulloch, Calhoun, Candler, Charlton, Chattooga, Clarke, Clay, Clinch, Coffee, Colquitt, Columbia, Cook, Crisp, Dodge, Dooly, Early, Elbert, Emanuel, Evans, Glascock, Gordon, Grady, Greene, Hancock, Hart, Irwin, Jeff Davis, Jefferson, Jenkins, Jones, Lincoln, Lowndes, Macon, Madison, McDuffie, Mitchell, Montgomery, Morgan, Oconee, Peach, Pierce, Polk, Pulaski, Putnam, Quitman, Randolph, Richmond, Screven, Stephens, Stewart, Taliaferro, Tattnall, Taylor, Telfair, Toombs, Treutlen, Turner, Twiggs, Upson, Ware, Warren, Washington, Wayne, Webster, Wheeler, Whitfield, Wilcox, Wilkes, Wilkinson,

Families that already have vouchers and remain in their current apartments should not face the results of the increased FMRs right away. But they will be affected eventually if the payment standards are reduced. Be alert for any changes and I will keep you posted.