[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: 24CFR990.160]

[Page 710]
 
                 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.