HUD Sets Certain OCAFs for 2021
On Nov. 27 HUD published a notice in the Federal Register that establishes operating cost adjustment factors (OCAFs) for project-based assistance contracts issued under Section 8 of the United States Housing Act of 1937 and renewed under the Multifamily Assisted Housing Reform and Affordability Act of 1997 (MAHRA) for eligible multifamily housing projects having an anniversary date on or after Feb. 11, 2021.
OCAFs are calculated as the sum of weighted component cost changes for wages, employee benefits, property taxes, insurance, supplies and equipment, fuel oil, electricity, natural gas, and water/sewer/trash using publicly available indices. The weights used in the OCAF calculations for each of the nine cost component groupings are set using current percentages attributable to each of the nine expense categories. Average expense proportions were calculated using three years of audited Annual Financial Statements from projects covered by OCAFs.
The factors are effective Feb. 11, 2021, and can be found here.