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Administrative Plan 7/1/2025 Page 16-3 <br />PART II: SETTING PROGRAM STANDARDS AND SCHEDULES <br />16-II.A. OVERVIEW <br />Although many of the program’s requirements are established centrally by HUD, the HCV <br />program’s regulations recognize that some flexibility is required to allow the PHA to adapt the <br />program to local conditions. This part discusses how the PHA establishes and updates certain <br />schedules and standards that are used to administer the program locally. Details about how these <br />schedules are applied to individual families are provided in other chapters. The schedules and <br />standards discussed here include: <br /> Payment Standards, which dictate the maximum subsidy a family can receive (application of <br />the payment standards is discussed in Chapter 6); and <br /> Utility Allowances, which specify how a family’s payment should be adjusted to account for <br />tenant-paid utilities (application of utility allowances is discussed in Chapter 6). <br />SAHA Policy <br />Copies of the payment standard and utility allowance schedules are available for review <br />in the SAHA’s offices during normal business hours and on SAHA’s website. <br />Families, owners, and members of the public may submit written comments on the <br />schedules discussed in this part, at any time, for consideration during the next revision <br />cycle. <br />SAHA will maintain documentation to support its annual review of payment standards <br />and utility allowance schedules. This documentation will be retained for at least three <br />years. <br />16-II.B. PAYMENT STANDARDS [24 CFR 982.503; HCV GB, Chapter 7; and Notice <br />PIH 2024-34] <br />The payment standard sets the maximum subsidy payment a family can receive from the PHA <br />each month [24 CFR 982.505(a)]. Payment standards are based on fair market rents (FMRs) <br />published annually by HUD. FMRs are set at a percentile within the rent distribution of standard <br />quality rental housing units in each FMR area. For most jurisdictions FMRs are set at the 40th <br />percentile of gross rents in the market area. <br />In the HCV program, the FMR may be established at the ZIP code level, metropolitan market <br />area level, or nonmetropolitan county level. Within each FMR area, the applicable FMR is the <br />HUD-published: <br /> Small Area FMR (SAFMR); <br />- For any metropolitan area designated as an SAFMR area; or <br />- Anywhere a PHA has notified HUD it will voluntarily use SAFMRs; <br /> Metropolitan FMR for any other metropolitan area; or <br /> FMR for any other non-metropolitan county. <br />EXHIBIT 1