[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: 24CFR990.235]



[Page 721-722]

 

                 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 F_Transition Policy and Transition Funding

 

Sec.  990.235  PHAs that will experience a subsidy increase.



    (a) For PHAs that will experience a gain in their operating subsidy, 

as determined in Sec.  990.225, such increases will have a limit of 50 

percent of the difference between the two funding levels in the first 

year following implementation of the formula contained in this part.

    (b) The full amount of the increase in the operating subsidy level 

shall be realized in the second year following implementation of the 

formula contained in this part.

    (c) For example, a PHA's subsidy increased from $900,000 under the 

formula in effect prior to implementation of the formula contained in 

this part to $1 million under the formula contained in this part using 

FY 2004 data. The difference would be calculated at $100,000 ($1 

million-$900,000 = $100,000). In the first year, the subsidy increase 

would be limited to $50,000 (50 percent of the difference). Thus, in 

this example the PHA will receive the operating subsidy amount of this 

rule minus a transition-



[[Page 722]]



funding amount of $50,000 (the $100,000 difference between the two 

subsidy amounts minus the $50,000 transition amount).

    (d) The schedule for a PHA whose subsidy would be increased is 

reflected in the table below.



------------------------------------------------------------------------

        Funding  period                    Increase limited to

------------------------------------------------------------------------

Year 1........................  50 percent of the difference.

Year 2........................  Full increase reached.

------------------------------------------------------------------------





[70 FR 54997, Sept. 19, 2005; 70 FR 61367, Oct. 24, 2005]