Today, December 20, 2016, HUD published in the Federal Register a notice titled “Section 8 Housing Assistance Program–Annual Adjustment Factors, Fiscal Year 2017.” The notice announces the FY 2017 Annual Adjustment Factors (AAFs) for adjustment of contract rents on the anniversary of certain assistance contracts. The Housing Choice Voucher program does not use AAFs, and a separate notice is published announcing the renewal funding inflation factors (RFIFs) for that program. There are three categories of Section 8 programs that use the AAFs.
Category 1: The Section 8 New Construction, Substantial Rehabilitation, and Moderate Rehabilitation programs.
Category 2: The Section 8 Loan Management (LM) and Property Disposition (PD) programs.
Category 3: The Section 8 Project-Based Certificate (PBC) program.
Each Section 8 program uses AAFs differently, and the specific application of the AAFs is determined by the law, the HAP contract, and the program regulations and requirements.
The full notice can be found here.