[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: 24CFR990.195]

[Page 716-717]
 
                 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 D_Calculating Formula Income
 
Sec. 990.195  Calculation of formula income.


    (a) General. For the purpose of the formula, formula income is equal 
to the amount of rent charged to tenants divided by the respective unit 
months leased, and is therefore expressed as a PUM. Formula income will 
be derived from a PHA's year-end financial information. The financial 
information used in the formula income computation will be the audited 
information provided by the PHA through HUD's information systems. The 
information will be calculated using the following PHA fiscal year-end 
information:
    (1) April 1, 2003, through March 31, 2004;
    (2) July 1, 2003, through June 30, 2004;
    (3) October 1, 2003, through September 30, 2004; and
    (4) January 1, 2004, through December 31, 2004.
    (b) Calculation of formula income. To calculate formula income in 
whole dollars, the PUM amount will be multiplied by the EUMs as 
described in subpart B of this part.
    (c) Frozen at 2004 level. After a PHA's formula income is calculated 
as described in paragraph (a) of this section, it will not be 
recalculated or inflated for fiscal years 2007 through 2009, unless a 
PHA can show a severe local economic hardship that is impacting the 
PHA's ability to maintain some semblance of its formula income (see 
subpart G of this part--Appeals). A PHA's formula income may be 
recalculated if the PHA appeals to HUD for an adjustment in its formula.
    (d) Calculation of formula income when data are inadequate or 
unavailable. When audited data are unavailable in HUD's information 
systems for the calculation of formula income, HUD may use

[[Page 717]]

an alternative methodology, including, but not limited to, 
certifications, hard copy reports, and communications with the 
respective PHAs.
    (e) Inapplicability of 24 CFR 85.25. Formula income is not subject 
to the provisions regarding program income in 24 CFR 85.25.

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