[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: 24CFR990.160]



[Page 712]

 

                 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 C_Calculating Formula Expenses

 

Sec.  990.160  Overview of calculating formula expenses.





    (a) General. Formula expenses represent the costs of services and 

materials needed by a well-run PHA to sustain the project. These costs 

include items such as administration, maintenance, and utilities. HUD 

also determines a PHA's formula expenses at a project level. HUD uses 

the following three factors to determine the overall formula expense 

level for each project:

    (1)The project expense level (PEL) (calculated in accordance with 

Sec.  990.165);

    (2) The utilities expense level (UEL) (calculated in accordance with 

Sec. Sec.  990.170, 990.175, 990.180, and 990.185); and

    (3)Other formula expenses (add-ons) (calculated in accordance with 

Sec.  990.190).

    (b) PEL, UEL, and Add-ons. Each project of a PHA has a unique PEL 

and UEL. The PEL for each project is based on ten characteristics and 

certain adjustments described in Sec.  990.165. The PEL represents the 

normal expenses of operating public housing projects, such as 

maintenance and administration costs. The UEL for each project 

represents utility expenses. Utility expense levels are based on an 

incentive system aimed at reducing utility expenses. Both the PEL and 

UEL are expressed in PUM costs. The expenses not included in these 

expense levels and which are unique to PHAs are titled ``other formula 

expenses (add-ons)'' and are expressed in a dollar amount.

    (c) Calculating project formula expense. The formula expense of any 

one project is the sum of the project's PEL and the UEL, multiplied by 

the total EUMs specific to the project, plus the add-ons.