HUD Issues New 2014 Operating Cost Adjustment Factors

On Oct. 2, HUD published new Operating Cost Adjustment Factors (OCAFs), which will be effective for project-based assistance contracts for eligible multifamily housing projects having an anniversary date on or after Feb. 11, 2015. OCAFs are annual factors used to adjust Section 8 rents renewed under Section 524 of the Multifamily Assisted Housing Reform and Affordability Act of 1997 (MAHRA). In other words, under certain Section 8 contract renewal options, HUD uses OCAFs to increase Section 8 contract rents annually for sites with multiyear contracts.