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DRAFT FOR ATTORNEY REVIEW — NOT FINAL

Open Cmtys. Alliance v. Carson, 286 F. Supp. 3d 148 (2017)

Citation
Open Cmtys. Alliance v. Carson, 286 F. Supp. 3d 148 (2017)
Parent Document
Open Cmtys. Alliance v. Carson, 286 F. Supp. 3d 148 (2017)
Effective Date
2017-12-23

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HUD published a final rule on November 16, 2016. Final Rule , 81 Fed. Reg. 80,567. Calculating payment standards based on SAFMRs, HUD said, would "provid[e] ... a subsidy adequate to make such [high-opportunity, low-poverty] areas accessible and, consequently, help reduce the number of voucher families that reside in areas of high poverty concentration." Id. at 80,567. "ZIP codes," HUD reasoned, "are small enough to reflect neighborhood differences and provide an easier method of comparing rents within one ZIP code to another ZIP code area within a metropolitan area." Id. at 80,568. The rule contained several provisions to address concerns about SAFMRs' potential adverse impacts on voucher holders in low-rent ZIP codes. Id. at 80,572. Particularly relevant here, the rule authorized HUD to "suspend a Small Area FMR designation for a metropolitan area ... where HUD determines such action is warranted based on a documented finding of adverse rental housing market conditions that will be set out by notice," id. at 80,569, enumerating three circumstances that could warrant a designation's suspension or PHA's exemption from the SAFMR mandate, 24 C.F.R. § 888.113(c)(4). HUD provided by notice that the new rule would go into effect on October 1, 2017, requiring affected PHAs to implement the rule by January 1, 2018, Final Rule , 81 Fed. Reg. at 81,569 ; 24 C.F.R. § 982.503(b)(1), and designated 24 metropolitan areas, which covered over 200 PHAs in total, subject to the Rule based on five fixed, objective criteria, see Small Area Fair Market Rents in Housing Choice Voucher Program Values for Selection Criteria and Metropolitan Areas Subject to Small Area Fair Market Rents , 81 Fed. Reg. 80,678, 80,679 (Nov. 16, 2016) ("SAFMR Area Designations "); Defs.'