Nogales housing authority adopts HUD payment standards at 100% for 2026

The Board of Commissioners of the Housing Authority of the City of Nogales voted Nov. 5 to adopt Resolution R2025-Land-008, setting payment standards for Housing Choice Vouchers at 100% of the U.S. Department of Housing and Urban Development's (HUD) Fair Market Rent (FMR) for Santa Cruz County for calendar year 2026.

Director Judith Armendariz recommended the board set the payment standard at 100% of HUD's FMR, saying that option "balances the budget and there is housing access," while higher levels would widen housing choices but could require use of reserves. Armendariz explained that HUD provides FMRs by county and that local public-housing authorities must set payment standards between 90% and 110% of the FMR; families typically pay about 30% of income toward rent and the authority covers up to the standard.

Board members asked how utilities are treated in the calculation and whether the authority could cover higher rents at 110% without additional HUD funding. Armendariz said utilities are included in the payment standard when they are not tenant-paid and warned that choosing 110% could require drawing on agency reserves because HUD does not increase per-unit funding simply because a local authority sets a higher standard.

A commissioner moved to approve R2025-Land-008 with two amendments: (1) add the formal resolution heading that identifies the board as the Housing Authority of the City of Nogales and (2) set payment standards at 100% of FMR. A second was recorded. The board voted "all aye" and the motion passed; no roll-call vote naming individual commissioners was recorded in the meeting minutes or recording.

The resolution directs staff to apply the adopted payment standards for HUD-subsidized voucher calculations for Santa Cruz County for calendar year 2026. The motion and approval were entered into the record as part of the meeting's official actions.