The OCAF (Operating Cost Adjustment Factor) is a factor that is established by HUD, and is applied to the existing contract rent (less the portion of the rent that is paid for debt service). OCAF Values are determined by HUD annually and are published in the Federal Register.
What is annual Adjustment Factor?
The Department of Housing and Urban Development establishes the rent adjustment factors — called Annual Adjustment Factors (AAFs) — on the basis of Consumer Price Index (CPI) data relating to changes in residential rent and utility costs.
What is operating cost adjustment factor?
Operating Cost Adjustment Factors are used for adjusting or establishing rents for projects assisted with Section 8 Housing Assistance Payments. The national average OCAF is 2.5% for 2021, compared to 2.2% for 2020.
What is an annual Adjustment?
Annual Adjustment means an annual increase by the percentage by which the Consumer Price Index, as published by the United States Department of Labor for all urban consumers or its successor publication, for the year immediately prior to the year in which the fee is being imposed exceeds the Consumer Price Index for …
What does Ocaf stand for?
Operating Cost Adjustment Factor (OCAF) rent increases are based on the Operating Cost Adjustment Factors released by HUD annually in the Federal Register. Guidance for OCAF Adjustment requests can be found in the Section 8 Renewal Policy.
How is Ocaf calculated?
OCAFs are calculated as the sum of weighted component cost changes for wages, employee benefits, property taxes, insurance, supplies and equipment, fuel oil, electricity, natural gas, and water/sewer/trash, using publicly available indices.
What is an Ocaf increase?
Operating Cost Adjustment Factor (OCAF) rent increases are based on the Operating Cost Adjustment Factors released by HUD annually in the Federal Register.
