HUD recently published key details on the Operating Cost Adjustment Factors (OCAF) for 2024, which drive significant subsidy increases for multifamily assisted housing. E3 Housing helps multifamily owners and agents navigate the new OCAF calculations and requirements through HUD training certification programs and ongoing hud compliance training.
What the OCAF Factors Represent
The Operating Cost Adjustment Factors are annual percentile increases provided by HUD to support subsidized multifamily housing properties and maintain budget capacity to cover expenses based on inflation. OCAF rates apply to Section 8 project-based rental assistance (PBRA) properties, providing vital subsidy bumps for housing providers to sustain operations.
HUD utilizes localized or national economic data tied to operational cost inputs like taxes, utilities, administration expenses, maintenance and more to derive reasonable subsidy elevations reflective of market conditions. OCAF aims to preserve assisted housing inventory by empowering providers to meet their financial responsibilities.
Key Aspects of 2024 OCAF Changes
After a relatively mild 1.3% OCAF hike in 2023, HUD analysis points to economic indicators driving considerably higher 2024 adjustment percentages based on widening inflation: ● National OCAF: 7.8%
● High Cost Areas OCAF: 10.3%
● New Construction Properties OCAF: 7.8%
These represent substantial year-over-year gains in eligible subsidy payments to PBRA housing developments in response to macro-level rising consumer costs.
Preparing for OCAF Implementation
To smoothly facilitate processing the new 2024 OCAF subsidy payments, E3 Housing advises PBRA property staff engage in updated hud compliance training addressing:
● How to properly complete and submit HUD Form 92458 for each property reflecting the new increased subsidy needs
● Understanding how utility baseline submissions integrate with changing OCAF ● Ensuring rent increase notifications meet requirements and consider hardship exemptions
● Assessing any state notification demands depending on location
E3 Housing provides focused onsite HUD training services drilling down on nuanced program changes, so staff can aptly manage new requirements related to heightened OCAF inputs. We supplement with additional online and on-demand HUD training resources accessible 24/7 to reinforce retention around utility calculations, budget revisions, resident communications and documentation necessary to leverage 2024 OCAF benefits.
The Latest Example of Evolving HUD Factors
This latest round of sizable OCAF escalations represents the type of fluctuating program criteria that multifamily housing professionals must regularly navigate. E3 Housing helps decrypt complex HUD guidelines and equip personnel to comply through rigorous and refreshing training content.
With deep expertise administering a spectrum of affordable regulatory requirements, we stand ready to support staff training, development audits and related services so that providers can meet compliance responsibility amid frequently changing mandates.
Contact E3 Housing to Learn More!
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