[Code of Federal Regulations]
[Title 24, Volume 4]
[Revised as of April 1, 2003]
From the U.S. Government Printing Office via GPO Access
[CITE: 24CFR990.103]

[Page 688-689]
 
                 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. 990.103  Applicability of the Operating Fund Formula.

    (a) General. The Operating Fund Formula will be used in determining 
the amounts of operating subsidy payable to PHAs.
    (b) Applicability of the Operating Fund Formula. The Operating Fund 
Formula is applicable to all PHA rental units under Annual Contributions 
Contracts. The Operating Fund Formula applies to PHAs that have not 
received operating subsidy payments previously, but are eligible for 
such payments under the Operating Fund Formula.
    (c) Inapplicability of the Operating Fund Formula. The Operating 
Fund Formula, as described in this part, is not applicable to Indian 
Housing, the Section 23 Leased Housing Program, the Section 23 Housing 
Assistance Payments Program, the Section 8 Housing Assistance Payments 
Program, the Mutual Help Program, or the Turnkey III Homeownership 
Opportunity Programs.
    (d) Applicability of the Operating Fund Formula to the PHAs of the 
Virgin Islands, Puerto Rico, Guam, and Alaska. (1) The following 
provisions of this subpart A are applicable to housing owned by the PHAs 
of the Virgin Islands, Puerto Rico, Guam, and Alaska:

[[Page 689]]

    (i) The definition of ``other income'' at Sec. 990.102;
    (ii) Section 990.105 (Computation of allowable expense level). 
However, Sec. 990.105(e) (Computation of FHA-based operating expense 
level for application in FY 2001) does not apply to these PHAs;
    (iii) Section 990.105(f) (Flood insurance adjustment for FY 2001);
    (iv) Section 990.108(e) (Funding for resident participation 
activities);
    (v) Section 990.109(b) (Computation of projected average monthly 
dwelling rental income);
    (vi) Section 990.110(b) (Adjustments to utilities expense level); 
and
    (vii) Section 990.116 (Increases in dwelling rental income).
    (2) With the exception of the provisions listed in paragraph (d)(1) 
of this section, and other provisions of this part necessary to give 
full effect to the provisions listed in paragraph (d)(1) of this 
section, the Operating Fund Formula is not applicable to the PHAs of the 
Virgin Islands, Puerto Rico, Guam and Alaska. Operating subsidy payments 
to these PHAs are made in accordance with subpart B of this part.
    (e) Financial management, monitoring and reporting. The financial 
management system, monitoring and reporting on program performance and 
financial reporting will be in compliance with 24 CFR 85.20, 85.40 and 
85.41 except to the extent that HUD requirements provide for additional 
specialized procedures which are determined by HUD to be necessary for 
the proper management of the program in accordance with the requirements 
of the U.S. Housing Act of 1937 and the Annual Contributions Contracts 
between the PHAs and HUD.