Tomorrow, HUD will publish in the Federal Register, fiscal year (FY) 2020 Annual Adjustment Factors (AAFs). These factors are used by certain Section 8 contracts to provide annual adjustments to monthly rents. These factors are used “to adjust contract rents for units assisted in certain Section 8 housing assistance payment programs during the initial (i.e., pre-renewal) term of the [Housing Assistance Payment] HAP contract.”
Section 8 programs that use AAFs include the Section 8 New Construction program, Substantial Rehabilitation program, the Moderate Rehabilitation program, and the Section 8 Loan Management and Property Disposition programs. Each program uses the AAFs differently.
These AAFs are distinct from Renewal Funding Inflation Factors (RFIFs), which are inflation factors used by the Housing Choice Voucher program and Operating Cost Adjustment Factors (OCAFs), which are used as inflation factors for other Section 8 contracts.
The pre-publication copy of the notice can be found here.