HUD HCV Guidebook § 8
Administrative Plan Requirements (HUD HCV Guidebook)
Operative Text
The PHA Administrative Plan must address:96
• The process for establishing and revising payment standards, including policies on administering
increases and decreases in the payment standard during the HAP contract term.
• PHA policy on payment standard increases if the PHA chooses to adopt a policy to apply a payment
standard increase at any time earlier than the date calculated according to 24 CFR 982.505(c)(4).
• Criteria used to determine the designated areas and payment standard amounts for those areas.
• A PHA that chooses to adopt SAFMRs must amend its administrative plan to state that it will
employ SAFMRs in the operation of its HCV program. A PHA that is required to adopt SAFMRs
need not amend its administrative plan solely for this purpose.
• Protection of in-place participants. The adoption of SAFMRs may have the effect of pushing current
payment standards outside of the basic range. For example, if the FMR is high relative to the
SAFMR, the adoption of the SAFMR may result in the current payment standard amount exceeding
110 percent of the SAFMR. When the PHA’s payment standard decreases while the family
continues to reside in the unit for which the family is receiving assistance, the PHA has three
options:
o Hold harmless: The PHA may choose not to reduce the payment standard amount used to
calculate the subsidy for a family for as long as the family continues to reside in the unit
for which the family is receiving assistance.97
o Gradual reduction: Upon proper notification (as described below) to the family, the PHA
may gradually reduce the payment standard amount used to calculate the family’s
subsidy, phasing in the reduction. The initial reduction in payment standard cannot take
place earlier than two years following the effective date of the decrease in the payment
standard.98
o Two years after effective date: Upon proper notification to the family, the PHA may choose
to reduce the payment standard amount used to calculate such a family’s subsidy no
earlier than two years following the effective date of the decrease in the payment
standard.99
• Applicability to PBV program. All PHAs have discretion regarding whether to employ SAFMRs in its
project-based voucher (PBV) program, if they operate such a program.
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24 CFR 982.54, 983.10(b)(23) and (b)(19)
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24 CFR 982.505(c)(3)
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24 CFR 982.505(c)(3)(i) and (ii)
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24 CFR 982.505(c)(3)(i)Section 8 of the HUD Housing Choice Voucher Guidebook, drawing on 24 CFR 982.54 and related regulations, requires each Public Housing Authority (PHA) to maintain a written Administrative Plan that documents how payment standards are set, revised, and applied. The plan must explain how the PHA handles situations where adopting Small Area Fair Market Rents (SAFMRs) causes a payment standard to drop, including the rules protecting families already housed under a voucher. When a payment standard decreases, the regulation provides three distinct options for how and when that reduction may affect a family's subsidy calculation: holding the current amount steady, phasing in the reduction gradually, or applying the reduction no sooner than two years after the decrease takes effect.
Plain English — not legal advice.
Under HUD Housing Choice Voucher Guidebook § 8, Housing Assistance Payment (HAP) contract terms are directly shaped by the PHA's Administrative Plan, which governs how payment standard changes are applied during an active contract. Operators generally stay informed about their local PHA's adopted policies on SAFMRs and payment standard adjustments, since those policies determine the subsidy amounts used in HAP calculations. When a PHA announces a payment standard decrease, landlords participating in the HCV program typically review the applicable transition option the PHA has chosen—hold harmless, gradual reduction, or the two-year delayed reduction—to understand how subsidy amounts may change over time.
General guidance for property managers — not legal advice for your specific situation. Consult an attorney for advice on your case.
HUD Housing Choice Voucher Guidebook § 8 establishes protections for families already living in a unit when a PHA's payment standard decreases, such as when SAFMRs are adopted. Under the three options outlined in 24 CFR 982.505(c)(3), a PHA may not immediately reduce the subsidy calculation for an in-place family; at minimum, any reduction must be preceded by proper notification and cannot take effect earlier than two years after the payment standard decrease. Tenants who believe their PHA has not followed its own Administrative Plan policies on payment standard changes may consider contacting their local PHA directly, reaching out to a HUD field office, or connecting with a tenant-rights organization for general guidance on available options.
General guidance for tenants — not legal advice for your specific situation. Consult a tenant-rights organization or attorney for advice on your case.
Generated September 26, 2026 — auto-generated, not yet human-reviewed. See /transparency for methodology.
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