Housing Choice Voucher Program Memo

HHSC Memorandum   
Neighborhood Resources - Memo No. HD22-14 
 
Date:  
Oct. 12, 2022 
 
To: 
 
Housing and Human Service Commission 
 
Thru:  
Leah Powell, Neighborhood Resources Director 
 
 
Amy Jacobson, Housing and Redevelopment Manager 
 
From:  
Deborah Cooke, Housing Administration Supervisor 
 
Subject: 
Revising and Increasing the Payment Standards for the Housing Choice 
Voucher Program (Section 8 Program). 
 
 
Background: The U.S. Department of Housing and Urban Development (HUD) allows Public 
Housing Authorities (PHAs) to set the Payment Standards for the Housing Choice Voucher 
Program. Payment Standards are used to calculate the housing assistance payment that the 
PHA pays to the landlord on behalf of the family leasing the unit. Family contribution to rent 
is set at 30 to 40 percent of the family’s adjusted income. Each PHA has latitude in 
establishing its schedule of Payment Standard amounts by bedroom size. The range of 
possible Payment Standard amounts is based on HUD’s published Fair Market Rent (FMR) 
schedule for the area in which the PHA has jurisdiction. Ordinarily a PHA may set its Payment 
Standard amounts from 90 to 110 percent of the Published FMRs. However, due to the 
challenging housing market, HUD has approved Chandler Housing Public Housing Authority 
pursuant to Notice PIH 2021-34, “Expedited Regulatory Waivers for the Public Housing and 
Housing Choice Voucher (including Mainstream and Mod Rehab) Programs” continued use 
of specific regulatory waiver for establishment of payment standard from 111 to 120 percent 
of the FMR. 
 
Discussion: Staff provides a briefing item to the Housing and Human Services Commission 
(HHSC) members for their recommendation to PHAC of the City of Chandler Housing and 
Redevelopment Payment Standards for the Housing Choice Voucher Program (Section 8 
Program) effective Jan. 1, 2023. 
 
The 2022 FMR increased Oct. 1, 2022; therefore, staff wishes to increase the current Payment 
Standards effective Jan. 1, 2023. The Housing Choice Voucher Program’s Payment Standards

Memo No. HD22-14 
Oct. 12, 2022 
Page 2 
 
are currently set at 119 percent of the FMR (with a waiver) and staff wishes to increase the 
current Payment Standards by an average of 32 percent to help offset the continued 
increases in market rents. Without the increase, Bedroom sizes for efficiency to two-
bedroom would fall below the 90 percent minimum. 
 
Since 1998, Chandler’s Payment Standards have varied within the Program, but generally 
have hovered around an average of 99 percent of the published FMR. The current Payment 
Standard for Chandler was changed April 1, 2022 in response to the rising costs in the rental 
market and HUD’s waiver to make the program competitive with market rents. Rental rates 
have increased significantly in the last few years in the Chandler rental market and are 
hampering the City’s voucher participants’ ability to find reasonably priced rental units within 
the existing Payment Standards. 
 
These factors limit choices for prospective renters in the Housing Choice Voucher Program, 
increase the time searching for rental units, and, in some cases, eliminate the option to 
renew a lease where a tenant is currently leasing. Currently, there are 80 voucher holders 
searching. 
 
The proposed Payment Standards will increase the housing assistance payments, which is 
the amount the PHA pays monthly to landlords on behalf of the tenants. There is adequate 
funding within the remaining Housing Choice Voucher Program budget year to 
accommodate the increased costs. Alternatively, if the Payment Standards are not increased, 
prospective tenants may not be able to find dwelling units to rent and Housing Choice 
Vouchers will go underutilized. Any underutilized Housing Choice Voucher Program funding 
at the end of the year is returned to HUD and future Housing Choice Voucher Program 
budgets are adjusted downward based on past performance.  
 
 
Financial Implications:. All costs associated with the Housing Choice Voucher Program are 
funded by HUD. 
 
 
Attachments: Resolution No. HO171 
 
 
Exhibit A: Payment Standards

Memo No. HD22-14 
Oct. 12, 2022 
Page 3 
 
 
 
Exhibit A 
 
Chandler Housing and Redevelopment Division 
Housing Choice Voucher Program 
Proposed Payment Standards 
Effective 01/01/2023 
     *Percentages are approximate and average 32 percent increase for overall bedroom sizes. 
 
 
 
 
 
 
 
 
 
 
Bedroom Size 
 
Current Payment 
Standards 
04/01/2022 
Proposed Payment 
Standards 
 Effective 
01/01/2023 (119%) 
 
 
Payment Standards % 
of Increase* 
0 
$ 1,196 
$ 1,599 
34% 
1 
$ 1,298 
$ 1,746 
34% 
2 
$ 1,560 
$ 2,071 
33% 
3 
$ 2,172 
$ 2,839 
31% 
4 
$ 2,473 
$ 3,232 
31% 
5 
$ 2,844 
$ 3,717 
31% 
6 
$ 3,215 
$ 4,202 
31%