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Calculation and Submission of Operating Subsidy Training

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  1. Calculation and Submission of Operating Subsidy Training June, July and August 2006 Forms HUD-52722 and HUD-52723

  2. Training Modules • Module 1 – Introduction • Module 2 – Unit and Unit Months • Module 3 – UEL (Utility Expense Level) • Module 4 – Other Formula Expenses (Add-ons) • Module 5 – Formula Income • Module 6 – Transition Policy/Completion of Form • Module 7 – Deleted Units and Asset Repositioning Fee • Module 8 – New Units

  3. Module 1: Introduction Calculation and Submission of Operating Subsidy Training

  4. Training Objectives • Understand Final Operating Fund Formula (“the Formula”) • Complete Revised HUD-52722 and HUD-52723 Forms • Emphasize Complex Parts of Formula and Forms

  5. Historical Background • Quality Housing and Work Responsibility Act of 1998 (“QHWRA”) • Negotiated Rulemaking 1999 • Harvard Cost Study • Negotiated Rulemaking 2004 • Revision of 24 CFR Part 990 (“the Rule”)

  6. Reference Materials • Final Rule (Sep. 19, 2005) • PIH 2005-34 (Nov. 2, 2005) – General Information • FR-5016-N-02 (Jan. 5, 2006) – Calculation of PEL • PIH 2006-10 (Feb. 3, 2006) – Guidelines to Identify AMPs • PIH 2006-14 (Mar. 22, 2006) – Transition Calculation and Asset Management Compliance

  7. Consequences of Final Rule • Project-Based Funding • Direct funding of asset management properties • Project-Based Budgeting and Accounting • Training in the Fall • Asset Management • Primer Webcast Available

  8. Funding Shift PHA to Property • FY 2006 – PHA-Level Funding • Interim Funding Formula (AEL) • FY 2007 – PHA-Level Funding • Final Funding Formula (WAPEL) • FY 2008 – Property-Level Funding • Final Funding Formula (PEL)

  9. Funding Method ComparisonInterim Rule Operating Fund Public Housing Authority

  10. Funding Method ComparisonFinal Rule Operating Fund AMPs Public Housing Authority

  11. Revised Funding Forms for FY 2007 Funding • HUD-52723: Operating Fund Calculation of Operating Subsidy • HUD-52722: Operating Fund Calculation of Utilities Expense Level

  12. Eliminated Funding Forms • HUD-52722a: Calculation of Allowable Utilities Expense • HUD-52722b: Adjustment for Utility Consumption and Rates • HUD-52720a: Formula Data Collection • HUD-52720b: Calculation of Formula and Delta • HUD-52720c: Range Test and Determination of Base Year Expense Level • HUD-52728: HA Calculation of Occupancy Percentage for a Requested Budget Year (RBY)

  13. Other Required Forms • SF-424 Application for Federal Assistance • HUD-50071 Certification of Payments to Influence Federal Transactions

  14. Operating Fund Submission Timeline

  15. Types of Revisions • PHA Error • New/Deleted Units • Transition/Stop Loss • Extenuating Circumstances

  16. Final Operating Subsidy Formula – Major Components • EUM – Eligible Unit Months • PEL – Project Expense Level • UEL – Utility Expense Level • Add-ons – Non PEL/UEL expenses • Formula Income – Rental Income • k

  17. Operating Subsidy FormulaInterim Rule Operating Subsidy = [(AEL + UEL) x UMA] + Add-ons minus [Formula Income x UMA]

  18. Operating Subsidy FormulaFinal Rule Operating Subsidy = [(PEL + UEL) x EUM] + Add-ons minus [Formula Income x EUM]

  19. Operating Subsidy FormulaRelationships PEL Subsidy

  20. Operating Subsidy FormulaRelationships EUM Subsidy

  21. Operating Subsidy FormulaRelationships UEL Subsidy

  22. Operating Subsidy FormulaRelationships Add-ons Subsidy

  23. Operating Subsidy FormulaRelationships Income Subsidy

  24. HUD-52723 Format • Hard Copy Submission • Signed copy • Mailed to HUD • Excel Tool • Auto-populated data • Auto-calculation • Submitted electronically • Provides Historical Data

  25. Form HUD-52723 – Section 1 • Name and Address/ACC Number/DUNS • Auto-populated in Excel Tool • Please Verify Information

  26. Form HUD-52723 – Section 1 • Type of Submission: Original vs. Revision • Original submission due Sept. 15, 2006 • Final Revision Due July 15, 2007

  27. Form HUD-52723 – Section 1 • Funding Period • Funding Period Not Linked to PHA FYE • FY 2007 = 01/01/2007 to 12/31/2007

  28. Form HUD-52723 – Section 1 • PHA Fiscal Year End • Not in Operating Fund Calculation - Data Purposes Only

  29. Form HUD-52723 – Section 1 • Operating Fund Project Number • Use existing PHA Project Number

  30. Section 3, Part A, Lines 01 through 04 • In FY 2007 PEL will be replaced by WAPEL

  31. WAPEL • Weighted Average PEL • FY 2007 Only • Weighted by Asset Management Property Units • Form HUD-52723 will not change for FY 2007

  32. Section 3, Line 01 – PUM Project Expense Level • Calculation Method – 990.165 • FY 2006 PEL (WAPEL) • Provided by HUD

  33. Line 02 - Inflation Factor • Weighted Average – Local Government Wages and Non-Wage Expenses • Provided by HUD

  34. Line 03 – PUM Inflated PEL • FY 2007 PEL (WAPEL) • Calculated Automatically

  35. Line 04 – PEL • PUM PEL x EUM • Calculated Automatically

  36. Module 2: Units and Unit Months Calculation and Submission of Operating Subsidy Training

  37. Funding Period • January 1 to December 31 of a given year • Example: For FFY 2007, it is Jan. 1, 2007 to Dec. 31, 2007 • All PHAs will be funded for the same period, regardless of PHA fiscal year end

  38. Reporting Period • 12-month period from July 1 to June 30 • Ends six months prior to the first day of the funding period • Example: For FFY 2007, it is Jul 1, 2005 to Jun 30, 2006 • Time period used to report unit information

  39. Section 2, ACC Units • ACC Units on 7/1/__ (7/1/05) • Units Added to ACC • Units Deleted from ACC • ACC Units on 6/30/__ (6/30/06)

  40. Section 2, Lines 01 through 17

  41. ACC Unit Categorization • Calculate the number of months a unit meets the criteria for a particular category • Two-Step Process: • Identify under which category unit was classified • Determine number of months unit was classified in that category during the reporting period

  42. Unit Categorization – First or Last Day of Month • PHA must choose first or last day • Method must be consistent • Example: Unit was vacant on Jul. 1, 2005. Unit was approved for special use on Sep. 20, 2005. PHA uses first day of month. • Sep. 1 – Vacant • Oct. 1 – Special Use

  43. Unit Months Includes all ACC units Used to determine: Asset management and IT fee add-ons Section 2, Column A

  44. Section 2 – Occupied Unit Categories

  45. Section 2, Line 01 • 01 – Occupied dwelling units – by public housing eligible Family • Occupied by public housing eligible family under lease • Residents meet the income/eligibility qualifications for public housing • 990.140

  46. Section 2, Line 02 • 02 – Occupied dwelling units – by PHA Employees, police officers • Occupied by PHA employee, police officer, or other security personnel who is not otherwise eligible for public housing • If these individuals are eligible for public housing, report on Line 01 • 990.190(e)

  47. Section 2, Line 03 • 03 – New units • Eligible to receive subsidy during the funding period but not included on Lines 01, 02, or 05-13 of this section • Discussed during “New Units” module • 990.155(a)(1) and (b)(1)

  48. Section 2, Line 04 • 04 – New units • Eligible to receive subsidy from 10/1 to 12/31 of previous funding period but not included on previous Calculation of Operating Subsidy • Discussed during “New Units” module • 990.155(a)(1) and (b)(1)

  49. Section 2, Vacant Unit Categories

  50. HUD-Approved Vacancies • Vacancies approved by the HUD field office • Approval is limited to the time period agreed to by the field office • PHA must request renewal every two years