Renewal Funding Inflation Factors


Renewal Funding Inflation Factors are used in the allocation of Housing Choice Voucher funds among Public Housing Agencies. Prior to FY 2012, these factors were called Renewal Funding Annual Adjustment Factors. In the FY 2012 HUD Appropriations bill, Congress changed the name of these factors in recognition of HUD’s new methodology for calculating the factors, which now take advantage of ongoing PD&R research aimed at better understanding the drivers of change in per-unit-costs (PUC) in the voucher program. Renewal Funding Inflation Factors have been developed to account for the expected annual change in average PUC in the voucher program using historical program data, coupled with several economic indices used to capture key components of the economic climate which also assist in explaining the changes in PUC.