Nogales housing authority adopts HUD fair market rents, sets payment standards at 100% for 2026

The Housing Authority of the City of Nogales voted Nov. 5 to adopt Housing Resolution R2025-11-008, approving HUD fair market rents and setting local payment standards at 100% for calendar year 2026 for Santa Cruz County.

Director Armendariz explained that HUD provides county-level fair market rent (FMR) estimates and that the authority must set payment standards between 90% and 110% of those FMRs. "HUD requires payment standards between the 90% and the 110% of the fair market rent," she said, and explained that the payment standard is the maximum subsidy the authority will pay while families generally pay up to 30% of their income for housing.

Armendariz outlined three scenarios: 90% reduces subsidy costs but limits available housing options; 110% expands housing access but would require the authority to cover additional subsidy costs from reserves; and 100% is a middle ground she recommended as balancing housing access and budget compliance. Commissioners asked how utilities factor into payment standards; Armendariz confirmed utilities (except phone) are included in the payment-standard calculation.

A commissioner moved to approve the resolution with an amendment to add the formal heading and to set the payment standards at 100%; the motion was seconded and approved by voice vote. The board's adopted resolution directs staff to implement the 100% payment standards for calendar year 2026 under the HUD Fair Market Rent schedule for Santa Cruz County.

The resolution and its implementation schedule will be included in the authority's records and provided to HUD as required.