[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: 24CFR990.235]

[Page 719-720]
 
                 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.

[[Page 720]]

    (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-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]