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HUD USER News: FMRs posted for FY 2006 + New Research on Panelized Construction

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Newsflash: The Fair Market Rents (FMR) for fiscal year
2006, effective October 1, 2005 have just been released.
FMRs serve as the basis for the payment standards used to
calculate subsidies under the Housing Choice Voucher
program, to determine initial renewal rents for expiring
project-based Section 8 contracts, to determine initial
rents for housing assistance payment (HAP) contracts in
the Moderate Rehabilitation Single Room Occupancy
program, and to serve as a rent ceiling in the HOME
rental assistance program. Today's notice provides final
FY2006 FMRs for all areas that reflect the estimated 40th
and 50th percentile rent levels trended to April 1, 2006.
The new FMRs are available as a free download at
https://www.huduser.gov/datasets/fmr.html.
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Integrating Panels into the Production Homebuilding
Process


How do builders decide whether to use panelized house
systems? What factors come into play when a builder is
contemplating making a move to panelized construction?
Why do builders choose not to use panelized construction?
These questions are addressed in a study conducted for
the U.S. Department of Housing and Urban Development's
PATH (Partnership for Advancing Technology in Housing)
program in an effort to better understand how builders
are using panel systems.

The study found that higher initial costs and an
inadequate understanding of panelized housing technology
appear to be the most common barriers for builders who
have not used panels. Competition with other builders is
not a major factor in deciding to use panels. Some code
officials appeared to lack understanding of how panel
systems work, but according to the builders, most
officials are accepting of the technology once they have
been educated - in some cases, by the builders
themselves. Among builders who have elected to use
panels, long-term cost savings, shorter construction
times, and better overall quality are major deciding
factors. Some builders who have carved out niche markets
in building energy-efficient homes claim that the energy
efficiency of structural insulated panel (SIP)
construction helps them to better serve this market. Some
important factors for the successful use of panels cited
by the builders include working with trained crews who
are experienced with the technology, good communication,
and coordination between the builder and panel supplier.

An underlying finding of the study is that builders
willing to trust in advanced technology are often
rewarded for their efforts in lower material costs, lower
labor costs, and fewer callbacks.

"Integrating Panels into the Production Homebuilding
Process" is available as a free download at
https://www.huduser.gov/portal/publications/destech/integratepanels.html
and will be available in printed form in October for a
nominal charge. It can be pre-ordered by calling HUD USER
at 1-800-245-2691.


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Please contact us at:
HUD USER
P.O. Box 23268
Washington, DC 20026-3268
1-800-245-2691
1-800-927-7589 (TDD)
202-708-9981 (fax)
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