[Code of Federal Regulations]
[Title 24, Volume 4]
[Revised as of April 1, 2007]
From the U.S. Government Printing Office via GPO Access
[CITE: 24CFR982.102]

[Page 577-579]
 
                 TITLE 24--HOUSING AND URBAN DEVELOPMENT
 
CHAPTER IX--OFFICE OF ASSISTANT SECRETARY FOR PUBLIC AND INDIAN HOUSING, 
 
PART 982_SECTION 8 TENANT BASED ASSISTANCE: HOUSING CHOICE VOUCHER PROGRAM--
 
            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 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.

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    (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 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.

[[Page 579]]

    (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 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]