HUD HCV Guidebook § 2.8

In rare cases, HUD may suspend an SAFMR designation from a metropolitan area or may temporarily exempt
a PHA in a designated SAFMR area from the use of SAFMRs, when HUD makes a documented determination,
through public notice, that such action is warranted.30 The process for reviewing whether a suspension or
temporary exemption is warranted may be initiated by HUD or at the request of a PHA. The PHA’s request for
suspension or exemption must be emailed to SAFMRs@hud.gov.
A PHA may request either:
          •   Suspension of the SAFMR designation for a metropolitan area.
                 o Only PHAs, or a combination of PHAs, that administer more than 50 percent of the
                    vouchers leased in the metropolitan area may make this request.
          •   Temporary exemption from the use of SAFMRs for an individual PHA.
In both cases, the request must be based on a documented finding of an adverse rental housing market
condition specific to the area or PHA. Adverse rental housing market conditions may include, but are not
limited to:
          •   Current vacancy rates falling below four percent (insufficient supply);
          •   A sudden and significant influx of families into the metropolitan area (demand shock);
          •   A sudden and significant loss of rental units (supply shock);
          •   A rapid increase in the PHA’s per unit costs (PUC) causing the PHA to experience a funding
              shortfall (supply or demand shocks).
Adverse rental housing market conditions may apply to the broad rental housing market or may apply to the
part of the rental market that is affordable and available to HCV families. For example, declining success
rates and increasing rent burdens, despite PHA owner outreach efforts, may be evidence of adverse rental
market conditions for HCV families due to lack of units that are both affordable and owned by owners willing

29
     85 FR 53444 (August 28, 2020) and as further edited by 90 FR 13189 (March 20, 2025)
30
     24 CFR 888.113(c)(4)

to participate in the HCV program. There may be other circumstances that could cause adverse rental market
conditions, and HUD will review the submitted documentation of these conditions on a case-by-case basis.
If HUD determines it is necessary to suspend an area’s SAFMR designation or temporarily exempt an
individual PHA from use of the SAFMRs, HUD will issue a Notice of Suspension or Exemption with information
on the adverse rental market condition that is the reason for the suspension, the duration and timing of the
suspension, and any other details as HUD determines necessary.