HUD Posts Strong Operating Cost Adjustment Factors for 2024
On Nov. 30th, the U.S. Department of Housing and Urban Development (HUD) posted the 2024 Operating Cost Adjustment Factors (OCAFs), with a national average of 5.3 percent applicable Feb. 11, 2024. OCAFs are factors used to adjust project-based Section 8 contract rents annually, including rents in Section 202/8 properties, based on nine market-driven cost components.
In 2023, HUD utilized a temporarily adjusted approach to OCAF calculation to account for historically high inflation rates. However, in addition to the temporary change, HUD agreed to implement more lasting changes to its OCAF calculation methodology, including key changes supported by LeadingAge related to insurance costs and data relevancy. Ultimately, while most states’ OCAF increase is less than last year’s historically high increase of 6.1 percent, the result is still a strong increase to operating budgets for affordable housing communities in 2024.
As operating and insurance costs continue to skyrocket for many properties, LeadingAge continues to urge HUD to do more. Read more from LeadingAge here.
Contact: Annalyse Komoroske Denio, akomoroskedenio@leadingageny.org, 518-867-8866