[Code of Federal Regulations]
[Title 24, Volume 4]
[Revised as of April 1, 2008]
From the U.S. Government Printing Office via GPO Access
[CITE: 24CFR990.110]

[Page 706-707]
 
                 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_Purpose, Applicability, Formula, and Definitions
 
Sec. 990.110  Operating fund formula.

    (a) General formula. (1) The amount of annual contributions 
(operating subsidy) each PHA is eligible to receive under this part 
shall be determined by a formula.
    (2) In general, operating subsidy shall be the difference between 
formula expense and formula income. If a PHA's formula expense is 
greater than its formula income, then the PHA is eligible for an 
operating subsidy.
    (3) Formula expense is an estimate of a PHA's operating expense and 
is determined by the following three components: Project Expense Level 
(PEL), Utility Expense Level (UEL), and other formula expenses (add-
ons). Formula expense and its three components are further described in 
subpart C of this part. Formula income is an estimate

[[Page 707]]

for a PHA's non-operating subsidy revenue and is further described in 
subpart D of this part.
    (4) Certain portions of the operating fund formula (e.g., PEL) are 
calculated in terms of per unit per month (PUM) amounts and are 
converted into whole dollars by multiplying the PUM amount by the number 
of eligible unit months (EUMs). EUMs are further described in subpart B 
of this part.
    (b) Specific formula. (1) A PHA's formula amount shall be the sum of 
the three formula expense components calculated as follows: {[(PEL 
multiplied by EUM) plus (UEL multiplied by EUM) plus add-ons] minus 
(formula income multiplied by EUM){time} .
    (2) A PHA whose formula amount is equal to or less than zero is 
still eligible to receive operating subsidy equal to its most recent 
actual audit cost for its Operating Fund Program.
    (3) Operating subsidy payments will be limited to the availability 
of funds as described in Sec. 990.210(c).
    (c) Non-codified formula elements. This part defines the major 
components of the Operating Fund Formula and describes the relationships 
of these various components. However, this part does not codify certain 
secondary elements that will be used in the revised Operating Fund 
Formula. HUD will more appropriately provide this information in non-
codified guidance, such as a Handbook, Federal Register notice, or other 
non-regulatory means that HUD determines appropriate.