[Code of Federal Regulations]

[Title 24, Volume 4]

[Revised as of April 1, 2006]

From the U.S. Government Printing Office via GPO Access

[CITE: 24CFR982.102]



[Page 579-582]

 

                 TITLE 24--HOUSING AND URBAN DEVELOPMENT

 

CHAPTER IX--OFFICE OF ASSISTANT SECRETARY FOR PUBLIC AND INDIAN HOUSING, 

               DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

 

PART 982_SECTION 8 TENANT BASED ASSISTANCE: HOUSING CHOICE VOUCHER PROGRAM

--Table of Contents

 

            Subpart C_Funding and PHA Application for Funding

 

Sec.  982.102  Allocation of budget authority for renewal of expiring 

consolidated ACC funding increments.



    (a) Applicability. This section applies to the renewal of 

consolidated ACC



[[Page 580]]



funding increments in the program (as described in Sec.  982.151(a)(2)) 

that expire after December 31, 1999 (including any assistance that the 

PHA has attached to units for project-based assistance under part 983 of 

this title). This section implements section 8(dd) of the 1937 Act (42 

U.S.C. 1437f(dd)),

    (b) Renewal Methodology. HUD will use the following methodology to 

determine the amount of budget authority to be allocated to a PHA for 

the renewal of expiring consolidated ACC funding increments in the 

program, subject to the availability of appropriated funds. If the 

amount of appropriated funds is not sufficient to provide the full 

amount of renewal funding for PHAs, as calculated in accordance with 

this section, HUD may establish a procedure to adjust allocations for 

the shortfall in funding.

    (c) Determining the amount of budget authority allocated for renewal 

of an expiring funding increment. Subject to availability of 

appropriated funds, as determined by HUD, the amount of budget authority 

allocated by HUD to a PHA for renewal of each program funding increment 

that expires during a calendar year will be equal to:

    (1) Number of renewal units. The number of renewal units assigned to 

the funding increment (as determined by HUD pursuant to paragraph (d) of 

this section); multiplied by

    (2) Adjusted annual per unit cost. The adjusted annual per unit cost 

(as determined by HUD pursuant to paragraph (e) of this section).

    (d) Determining the number of renewal units.--(1) Number of renewal 

units. HUD will determine the total number of renewal units for a PHA's 

program as of the last day of the calendar year previous to the calendar 

year for which renewal funding is calculated. The number of renewal 

units for a PHA's program will be determined as follows:

    (i) Step 1: Establishing the initial baseline. HUD will establish a 

baseline number of units (``baseline'') for each PHA program. The 

initial baseline equals the number of units reserved by HUD for the PHA 

program as of December 31, 1999.

    (ii) Step 2: Establishing the adjusted baseline. The adjusted 

baseline equals the initial baseline with the following adjustments from 

the initial baseline as of the last day of the calendar year previous to 

the calendar year for which renewal funding is calculated:

    (A) Additional units. HUD will add to the initial baseline any 

additional units reserved for the PHA after December 31, 1999.

    (B) Units removed. HUD will subtract from the initial baseline any 

units de-reserved by HUD from the PHA program after December 31, 1999.

    (iii) Step 3: Determining the number of renewal units. The number of 

renewal units equals the adjusted baseline minus the number of units 

supported by contract funding increments that expire after the end of 

the calendar year.

    (2) Funding increments. HUD will assign all units reserved for a PHA 

program to one or more funding increment(s).

    (3) Correction of errors. HUD may adjust the number of renewal units 

to correct errors.

    (e) Determining the adjusted per unit cost. HUD will determine the 

PHA's adjusted per unit cost when HUD processes the allocation of 

renewal funding for an expiring contract funding increment. The adjusted 

per unit cost calculated will be determined as follows:

    (1) Step 1: Determining monthly program expenditure.--(i) Use of 

most recent HUD-approved year end statement. HUD will determine the 

PHA's monthly per unit program expenditure for the PHA certificate and 

voucher programs (including project-based assistance under such 

programs) under the consolidated ACC with HUD using data from the PHA's 

most recent HUD-approved year end statement.

    (ii) Monthly program expenditure. The monthly program expenditure 

equals:

    (A) Total program expenditure. The PHA's total program expenditure 

(the total of housing assistance payments and administrative costs) for 

the PHA fiscal year covered by the approved year end statement; divided 

by

    (B) Total unit months leased. The total of unit months leased for 

the PHA fiscal year covered by the approved year end statement.

    (2) Step 2: Determining annual per unit cost. HUD will determine the 

PHA's annual per unit cost. The annual per unit



[[Page 581]]



cost equals the monthly program expenditures (as determined under 

paragraph (e)(1)(ii) of this section) multiplied by 12.

    (3) Step 3: Determining adjusted annual per unit cost. (i) HUD will 

determine the PHA's adjusted annual per unit cost. The adjusted annual 

per unit cost equals the annual per unit cost (as determined under 

paragraph (e)(2) of this section) multiplied cumulatively by the 

applicable published Section 8 housing assistance payments program 

annual adjustment factors in effect during the period from the end of 

the PHA fiscal year covered by the approved year end statement to the 

time when HUD processes the allocation of renewal funding.

    (ii) Use of annual adjustment factor applicable to PHA jurisdiction. 

For this purpose, HUD will use the annual adjustment factor from the 

notice published annually in the Federal Register pursuant to part 888 

that is applicable to the jurisdiction of the PHA. For a PHA whose 

jurisdiction spans multiple annual adjustment factor areas, HUD will use 

the highest applicable annual adjustment factor.

    (iii) Use of annual adjustment factors in effect subsequent to most 

recent Year End Statement. HUD will use the Annual Adjustment Factors in 

effect during the time period subsequent to the time covered by the most 

recent HUD approved Year End Statement and the time of the processing of 

the contract funding increment to be renewed.

    (iii) Special circumstances. At its discretion, HUD may modify the 

adjusted annual per unit cost based on receipt of a modification request 

from a PHA. The modification request must demonstrate that because of 

special circumstances application of the annual adjustment factor will 

not provide an accurate adjusted annual per unit cost.

    (4) Correction of errors. HUD may correct for errors in the adjusted 

per unit cost.

    (f) consolidated ACC amendment to add renewal funding. HUD will 

reserve allocated renewal funding available to the PHA within a 

reasonable time prior to the expiration of the funding increment to be 

renewed and establish a new expiration date one-year from the date of 

such expiration.

    (g) Modification of allocation of budget authority--(1) HUD 

authority to conform PHA program costs with PHA program finances through 

Federal Register notice. In the event that a PHA's costs incurred 

threaten to exceed budget authority and allowable reserves, HUD reserves 

the right, through Federal Register notice, to bring PHA program costs 

and the number of families served, in line with PHA program finances.

    (2) HUD authority to limit increases of per unit cost through 

Federal Register notice. HUD may, by Federal Register notice, limit the 

amount or percentage of increases in the adjusted annual per unit cost 

to be used in calculating the allocation of budget authority.

    (3) HUD authority to limit decreases to per unit costs through 

Federal Register notice. HUD may, by Federal Register notice, limit the 

amount or percentage of decreases in the adjusted annual per unit cost 

to be used in calculating the allocation of budget authority.

    (4) Contents of Federal Register notice. If HUD publishes a Federal 

Register notice pursuant to paragraphs (g)(1), (g)(2) or (g)(3) of this 

section, it will describe the rationale, circumstances and procedures 

under which such modifications are implemented. Such circumstances and 

procedures shall, be consistent with the objective of enabling PHAs and 

HUD to meet program goals and requirements including but not limited to:

    (i) Deconcentration of poverty and expanding housing opportunities;

    (ii) Reasonable rent burden;

    (iii) Income targeting;

    (iv) Consistency with applicable consolidated plan(s);

    (v) Rent reasonableness;

    (vi) Program efficiency and economy;

    (vii) Service to additional households within budgetary limitations; 

and

    (viii) Service to the adjusted baseline number of families.

    (5) Public consultation before issuance of Federal Register notice. 

HUD will design and undertake informal public consultation prior to 

issuing Federal Register notices pursuant to paragraphs (g)(1) or (g)(2) 

of this section.

    (h) Ability to prorate and synchronize contract funding increments. 

Notwithstanding paragraphs (c) through (g) of



[[Page 582]]



this section, HUD may prorate the amount of budget authority allocated 

for the renewal of funding increments that expire on different dates 

throughout the calendar year. HUD may use such proration to synchronize 

the expiration dates of funding increments under the PHA's consolidated 

ACC.

    (i) Reallocation of budget authority. If a PHA has performance 

deficiencies, such as a failure to adequately lease units, HUD may 

reallocate some of its budget authority to other PHAs. If HUD determines 

to reallocate budget authority, it will reduce the number of units 

reserved by HUD for the PHA program of the PHA whose budget authority is 

being reallocated and increase the number of units reserved by HUD for 

the PHAs whose programs are receiving the benefit of the reallocation, 

so that such PHAs can issue vouchers. HUD will publish a notice in the 

Federal Register that will describe the circumstances and procedures for 

reallocating budget authority pursuant to this paragraph.



[64 FR 56887, Oct. 21, 1999; 65 FR 16818, Mar. 30, 2000]