HUD Releases 2025 Operating Cost Adjustment Factors

(Dec. 17, 2024) On Dec. 11^th, the U.S. Department of Housing and Urban Development (HUD) announced the 2025 Operating Cost Adjustment Factors (OCAFs) with a national average of 4.8 percent, half a percent below the current year’s 5.3 percent average. The NYS OCAF is set at 4.5 percent for 2025.

The new OCAFs incorporate feedback on property insurance issues LeadingAge presented in advocacy to the agency. For instance, HUD adjusted the calculation methods for property insurance expenditures, leading to a higher adjustment to offset rising insurance costs.