[Code of Federal Regulations]
[Title 24, Volume 4]
[Revised as of April 1, 2001]
From the U.S. Government Printing Office via GPO Access
[CITE: 24CFR990.111]

[Page 693-694]
 
                 TITLE 24--HOUSING AND URBAN DEVELOPMENT
 
CHAPTER IX--OFFICE OF ASSISTANT SECRETARY FOR PUBLIC AND INDIAN HOUSING, 
               DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
 
PART 990--THE PUBLIC HOUSING OPERATING FUND PROGRAM--Table of Contents
 
                  Subpart A--The Operating Fund Formula
 
Sec. 990.111  Submission and approval of operating subsidy calculations and budgets.

    (a) Required documentation. (1) Prior to the beginning of its fiscal 
year, the PHA shall prepare an operating budget in a manner prescribed 
by HUD. The Board of Commissioners shall review and approve the budget 
by resolution. Each fiscal year, the PHA shall submit to the HUD Field 
Office, in a time and manner prescribed by HUD, the approved board 
resolution and the required operating subsidy eligibility calculation 
forms. The PHA shall submit revised calculations in support of any 
adjustments based on procedures prescribed by HUD.
    (2) HUD may direct the PHA to submit its complete operating budget 
if the PHA has failed to achieve certain specified operating standards, 
or for other reasons which in HUD's determination threaten the PHA's 
future serviceability, efficiency, economy, or stability.
    (b) HUD operating budget review. (1) The HUD Field Office will 
perform a detailed review on operating budgets that are subject to HUD 
review and approval. If the HUD Field Office finds that an operating 
budget is incomplete, includes illegal or ineligible expenditures, 
mathematical errors, errors in the application of accounting procedures, 
or is otherwise unacceptable, the HUD Field Office may at any time 
require the submission by the PHA of further information regarding an 
operating budget or operating budget revision.
    (2) When the PHA no longer is operating in a manner that threatens 
the future serviceability, efficiency, economy, or stability of the 
housing it operates, HUD will notify the PHA that it no longer is 
required to submit a complete operating budget to HUD for review and 
approval.
    (c) Compliance with environmental review requirements.--(1) General. 
Operating subsidy funds made available to a

[[Page 694]]

PHA to support the operation and management of public housing are 
generally for activities that are not subject to environmental review 
requirements. A PHA, however, may use public housing program resources 
(including operating subsidy funds, rental and nonrental income, and 
operating reserves) to carry out non-routine maintenance and capital 
expenditure activities that may require an environmental review, as 
those activities are defined in HUD's prescribed Chart of Accounts.
    (2) Initial operating budget. The ACC requires that operating 
expenditures may not be incurred except pursuant to an approved 
operating budget. Before the funding of non-routine maintenance and 
capital expenditure activities may be incorporated into the PHA's 
initial operating budget, and before the PHA may commit any funds to 
such activities, the PHA must obtain either:
    (i) An environmental review from the Responsible Entity and submit 
and receive HUD approval of a Request for Release of Funds under part 58 
of this title, or, in cases where HUD has determined to do an 
environmental review under part 50 of this title, the PHA must obtain an 
environmental approval from HUD; or
    (ii) A determination from the Responsible Entity under part 58 of 
this title that the PHA's proposed non-routine maintenance and capital 
expenditure activities are exempt from environmental review in 
accordance with Sec. 58.34(a)(12) of this title.
    (3) Revisions to operating budget. If subsequent to adoption of its 
initial operating budget, a PHA determines to undertake a new non-
routine maintenance or capital expenditure activity, the PHA must obtain 
an environmental review and release of funds, HUD environmental 
approval, or an exemption from such review, as described in paragraph 
(c)(2) of this section, before the funding of the activity may be 
incorporated into a revised operating budget and before the PHA may 
commit any funds to such activities.
    (4) Determination of exempt activities. If the Responsible Entity 
documents that a proposed non-routine maintenance or capital expenditure 
activity is an exempt activity, as described in paragraph (c)(2)(ii) of 
this section, no further action is required from the PHA and the 
activity may be incorporated into the PHA's initial or revised operating 
budget, as appropriate.