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Calculation and Submission of Operating Subsidy Training. June, July and August 2006 Forms HUD-52722 and HUD-52723. Training Modules. Module 1 – Introduction Module 2 – Unit and Unit Months Module 3 – UEL (Utility Expense Level) Module 4 – Other Formula Expenses (Add-ons)

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calculation and submission of operating subsidy training

Calculation and Submission of Operating Subsidy Training

June, July and August 2006

Forms HUD-52722 and

HUD-52723

training modules
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
module 1 introduction

Module 1: Introduction

Calculation and Submission of Operating Subsidy Training

training objectives
Training Objectives
  • Understand Final Operating Fund Formula (“the Formula”)
  • Complete Revised HUD-52722 and HUD-52723 Forms
  • Emphasize Complex Parts of Formula and Forms
historical background
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”)
reference materials
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
consequences of final rule
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
funding shift pha to property
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)
funding method comparison interim rule
Funding Method ComparisonInterim Rule

Operating Fund

Public Housing Authority

funding method comparison final rule
Funding Method ComparisonFinal Rule

Operating Fund

AMPs

Public Housing Authority

revised funding forms for fy 2007 funding
Revised Funding Forms for FY 2007 Funding
  • HUD-52723: Operating Fund Calculation of Operating Subsidy
  • HUD-52722: Operating Fund Calculation of Utilities Expense Level
eliminated funding forms
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)
other required forms
Other Required Forms
  • SF-424 Application for Federal Assistance
  • HUD-50071 Certification of Payments to Influence Federal Transactions
types of revisions
Types of Revisions
  • PHA Error
  • New/Deleted Units
  • Transition/Stop Loss
  • Extenuating Circumstances
final operating subsidy formula major components
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
operating subsidy formula interim rule
Operating Subsidy FormulaInterim Rule

Operating Subsidy

=

[(AEL + UEL) x UMA] + Add-ons

minus

[Formula Income x UMA]

operating subsidy formula final rule
Operating Subsidy FormulaFinal Rule

Operating Subsidy

=

[(PEL + UEL) x EUM] + Add-ons

minus

[Formula Income x EUM]

hud 52723 format
HUD-52723 Format
  • Hard Copy Submission
    • Signed copy
    • Mailed to HUD
  • Excel Tool
    • Auto-populated data
    • Auto-calculation
    • Submitted electronically
    • Provides Historical Data
form hud 52723 section 1
Form HUD-52723 – Section 1
  • Name and Address/ACC Number/DUNS
  • Auto-populated in Excel Tool
  • Please Verify Information
form hud 52723 section 11
Form HUD-52723 – Section 1
  • Type of Submission: Original vs. Revision
  • Original submission due Sept. 15, 2006
  • Final Revision Due July 15, 2007
form hud 52723 section 12
Form HUD-52723 – Section 1
  • Funding Period
  • Funding Period Not Linked to PHA FYE
  • FY 2007 = 01/01/2007 to 12/31/2007
form hud 52723 section 13
Form HUD-52723 – Section 1
  • PHA Fiscal Year End
  • Not in Operating Fund Calculation - Data Purposes Only
form hud 52723 section 14
Form HUD-52723 – Section 1
  • Operating Fund Project Number
  • Use existing PHA Project Number
section 3 part a lines 01 through 04
Section 3, Part A, Lines 01 through 04
  • In FY 2007 PEL will be replaced by WAPEL
wapel
WAPEL
  • Weighted Average PEL
  • FY 2007 Only
  • Weighted by Asset Management Property Units
  • Form HUD-52723 will not change for FY 2007
section 3 line 01 pum project expense level
Section 3, Line 01 – PUM Project Expense Level
  • Calculation Method – 990.165
  • FY 2006 PEL (WAPEL)
  • Provided by HUD
line 02 inflation factor
Line 02 - Inflation Factor
  • Weighted Average – Local Government Wages and Non-Wage Expenses
  • Provided by HUD
line 03 pum inflated pel
Line 03 – PUM Inflated PEL
  • FY 2007 PEL (WAPEL)
  • Calculated Automatically
line 04 pel
Line 04 – PEL
  • PUM PEL x EUM
  • Calculated Automatically
module 2 units and unit months

Module 2: Units and Unit Months

Calculation and Submission of Operating Subsidy Training

funding period
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
reporting period
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
section 2 acc units
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)
acc unit categorization
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
unit categorization first or last day of month
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
section 2 column a
Unit Months

Includes all ACC units

Used to determine:

Asset management and IT fee add-ons

Section 2, Column A
section 2 line 01
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
section 2 line 02
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)
section 2 line 03
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)
section 2 line 04
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)
hud approved vacancies
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
section 2 line 05
Section 2, Line 05
  • 05 – Units undergoing modernization
  • Two possible scenarios
  • Scenario 1 conditions
    • Modernization contract awarded or force account work started;
    • Construction on schedule according to HUD-approved PHA Annual Plan; and
    • Unit is vacant to perform work.
section 2 line 051
Section 2, Line 05
  • Scenario 2 conditions
    • PHA treats unit as undergoing modernization in HUD-approved PHA Annual Plan;
    • Time period for placing unit under construction not yet expired; and
    • Unit is vacant to perform work.
  • 990.145(a)(1)
section 2 line 06
Section 2, Line 06
  • 06 – Special use units
    • Resident services
    • Resident organization offices
    • Related activities, such as self-sufficiency and anti-crime initiatives
  • Eligibility conditions apply
  • 990.145(a)(2) and Notice PIH 94-71 (HA)
section 2 line 07
Section 2, Line 07
  • 07 – Units vacant due to litigation
    • Legally enforceable court order or settlement agreement
    • Regulatory and statutory requirements to avoid potential litigation
    • Voluntary compliance agreements with HUD or acceptable to HUD
    • 990.145(b)(1)
section 2 lines 08 and 09
Section 2, Lines 08 and 09
  • 08 – Units vacant due to disasters
    • Federally-declared, state-declared, and other-declared
    • 990.145(b)(2)
  • 09 – Units vacant due to casualty losses
    • Delays in settling insurance claims
    • 990.145(b)(3)
section 2 line 10
Section 2, Line 10
  • 10 – Units vacant due to changing market conditions
    • External reason for changing market conditions
    • PHA has taken aggressive marketing and outreach measures
    • HUD-approved vacancy through appeal process
    • 990.145(c)
section 2 line 11
Section 2, Line 11
  • 11 – Units vacant and not categorized above
    • Vacant
    • Available for occupancy
    • Not included on Lines 01 through 10 above
section 2 line 12
Section 2, Line 12
  • 12 – Units eligible for asset repositioning fee and still on ACC (occupied or vacant)
    • Discussed during “Deleted Units” module
    • 990.190(h)
section 2 line 13
Section 2, Line 13
  • 13 – All other ACC units not categorized above
    • Not eligible, but still on ACC
    • Not included on Lines 01 through 12
section 2 column a line 15
Section 2, Column A, Line 15
  • Total Unit Months
  • Sum of Section 2, Column A,
    • Lines 01 through 04
    • Lines 05 through 11
    • Lines 12 through 13
section 2 column b
Eligible Unit Months (EUMs)

Used to determine:

Project Expense Level (PEL)

Utilities Expense Level (UEL)

Formula Income

Section 2, Column B
section 2 line 06a
Section 2, Line 06a
  • 06a – Units on Line 02 that are occupied by police officers and that also qualify as special use units
    • Included in eligible unit months (EUMs)
    • Special Use Unit
section 2 line 14
Section 2, Line 14
  • 14 – Limited vacancies
    • Used in column B
  • PHAs with more than 100 units
    • May receive subsidy for vacant units up to 3% of total unit months
    • Calculation is lesser of:
      • 3% of Section 2, Column A, Line 15; or
      • Section 2, Column A, Line 11
section 2 line 141
Section 2, Line 14
  • 14 – Limited vacancies (continued)
  • PHAs with 100 or less units
    • May receive subsidy for up to five vacant units
    • Calculation is lesser of:
      • 60 unit months; or
      • Section 2, Column A, Line 11
    • 990.150
section 2 column b line 15
Total Unit Months (Eligible Unit Months)

Sum of Section 2, Column B,

Line 1

Lines 3 through 4

Lines 5 through 10

Line 14

Section 2, Column B, Line 15
section 2 column c
Resident Participation Unit Months

Used to determine funding for resident participation activities add-on

Section 2, Column C
section 2 line 16
Section 2, Line 16
  • Units eligible for funding for resident participation activities =

[Total Unit Months] ÷ [12]

  • Section 2, Column C, Line 16 =

[Section 2, Column C, Line 15] ÷ [12]

  • Only in Column C
section 2 line 17
Section 2, Line 17
  • Unit months for which the actual consumption is included in Line 01 of form HUD-52722 and that were removed from Lines 01 through 11, above, because of removal from inventory, including eligibility for the asset repositioning fee
    • Discussed during “Deleted Units” module
    • Only in Column B
exercise 1a and 1b
Exercise 1a and 1b
  • Refer to “Units and Unit Months – Exercise 1a” and form HUD-52723, Operating Fund Calculation of Operating Subsidy
  • Refer to “Units and Unit Months – Exercise 1b” and form HUD-52723, Operating Fund Calculation of Operating Subsidy
module 3 utilities expense level uel

Module 3:Utilities Expense Level (UEL)

Calculation and Submission of Operating Subsidy Training

uel summary
UEL Summary
  • Utility expense level (UEL) is based on:
    • PHA’s consumption of its utilities
    • Actual average utility rates for each utility
    • Inflation/deflation factor
uel summary continued
UEL Summary (Continued)
  • Sum of consumption of many utilities
  • Historical utility data
  • Utility consumption incentive
  • Same reporting period as HUD-52723
section 1 general information
Section 1 – General Information
  • Name of Public Housing Agency
  • ACC Number
  • Operating Fund Project Number
  • DUNS Number
section 1 general information1
Section 1 – General Information
  • Funding Period
  • Type of Submission
  • Fiscal Year End
section 1 general information2
Section 1 – General Information
  • Unit Change Indicator
  • Frozen Rolling Base
  • Rate Reduction Incentive
section 2 lines 01 and 01a
Section 2 – Lines 01 and 01a
  • 01 – Actual consumption
    • By type of utility
    • For reporting period (7/1/__ to 6/30/__)
  • 01a – Unit of consumption
    • Unit of measurement for each type of utility in Line 01
section 3 lines 02 03 and 04
Section 3 – Lines 02, 03 and 04

Jan. 1st minus 18 months

  • 02, 03 and 04 – Rolling base year 1, 2, and 3 - actual consumption
    • For 12-month period ending June 30th that is 18, 30, and 42 months prior to the first day of the funding period

Jan. 1st minus 30 months

Jan. 1st minus 42 months

section 3 line 05
Section 3 – Line 05
  • 05 – Total consumption during 3-year rolling base period

[Rolling base year 1, Line 02]

+

[Rolling base year 2, Line 03]

+

[Rolling base year 3, Line 04]

section 3 line 06
Section 3 – Line 06
  • 06 – Average rolling base consumption

[Total consumption during 3-year rolling base, Line 05]

÷

[3]

section 3 lines 07 and 08
Section 3 – Lines 07 and 08
  • 07 – Actual consumption for new units
    • Only if PHA has added units to ACC
  • 08 – Rolling base consumption

[Average rolling base consumption, Line 06]

+

[Actual consumption for new units, Line 07]

section 4 line 09
Section 4 – Line 09
  • 09 – Base Consumption
    • Lesser of:

[Actual Consumption, Line 01]

or

[Rolling Base Consumption, Line 08]

section 5 line 10
Section 5 – Line 10
  • 10 – Actual consumption > rolling base

If [Actual consumption, Line 01]

is greater than

[Rolling base consumption, Line 08], enter difference as positive

If not, enter zero

section 5 line 11
Section 5 – Line 11
  • 11 – Actual consumption < rolling base

If [Actual consumption, Line 01]

is less than

[Rolling base consumption, Line 08], enter difference as positive

If not, enter zero

section 5 line 12
Section 5 – Line 12
  • 12 – 75%/25% Split
    • Consumption increased

[Actual consumption > rolling base, Line 10]

x

[0.25]

section 5 line 13
Section 5 – Line 13
  • 13 – 75%/25% Split
    • Consumption decreased

[Actual consumption < rolling base, Line 11]

x

[0.75]

section 6 line 14
Section 6 – Line 14
  • 14 – Annualization of consumption for new units
    • Only if PHA added new units to ACC that are eligible for subsidy during funding period
section 6 line 15
Section 6 – Line 15
  • 15 – Payable consumption

[Base consumption, Line 09]

+

[75%/25% Split, Line 12]

+

[75%/25% Split, Line 13]

+

[Annualization of consumption for new units, Line 14]

section 7 lines 16 and 17
Section 7 – Lines 16 and 17
  • 16 – Actual utility costs
    • For consumption in Line 01
  • 17 – Actual average utility rate

[Actual average utility costs, Line 16]

÷

[Actual consumption, Line 01]

section 8 lines 18 and 19
Section 8 – Lines 18 and 19
  • 18 – Base utilities expense level

[Payable consumption, Line 15]

x

[Actual average utility rate, Line 17]

  • 19 – Surcharges for excess consumption
surcharges for excess consumption
Surcharges for Excess Consumption
  • PHA collects surcharges from tenants for excess utility consumption
  • Surcharges are treated as “income”
  • Surcharges are subtracted from base utilities expense level, resulting in less UEL
section 8 lines 20 and 21
Section 8 – Lines 20 and 21
  • 20 – Base utilities expense minus surcharges

[Base utilities expense level, Line 18]

minus

[Surcharges, Line 19]

  • 21 – Utilities inflation/deflation factor
section 9 line 22
Section 9 – Line 22
  • 22 – Utilities expense level adjusted for inflation/deflation

[Base utilities expense level, Line 20]

x

[Utilities inflation/deflation factor, Line 21]

section 9 line 23
Section 9 – Line 23
  • 23 – Energy rate incentive
  • PHA gets funding for 50% of the rate savings due to incentive
  • Documentation to support rate savings required
section 9 line 24
Section 9 – Line 24
  • 24 – Utilities expense level – whole dollars

[Utilities expense level adjusted for inflation/deflation, Line 22]

+

[Energy rate incentive, Line 23]

section 9 line 25
Section 9 – Line 25
  • 25 – Eligible unit months, from Form HUD-52723, Column B

[Total Unit Months, Line 15] +

[Unit months for which actual consumption is included in Line 01 of form…, Line 17]

minus

[New units – eligible to receive subsidy from 10/1 to 12/31…, Line 04]

section 9 line 26
Section 9 – Line 26
  • 26 – Utilities Expense Level – PUM

[Utilities expense level – whole dollars,

Line 24]

÷

[Eligible unit months, Line 25]

form hud 52723 part a line 05
Form HUD-52723, Part A, Line 05

Enter PUM Utilities Expense Level

on Line 05

avoid distortion of rolling base consumption level
Avoid Distortion of Rolling Base Consumption Level
  • A PHA shall report its rolling base consumption so as not to materially distort the rolling base period
situations requiring adjustments to avoid distortion of the rolling base consumption level
Situations Requiring Adjustments to Avoid Distortion of the Rolling Base Consumption Level
  • Conversion from one utility type to another type
  • Switch of utilities from resident-purchased to PHA-supplied, or vice versa
  • Interruptible service
  • Unoccupied projects and units
frozen rolling base
Frozen Rolling Base
  • PHA freezes rolling base at level prior to energy conservation measures
  • Rolling base remains frozen for length of energy conservation measure contract
frozen rolling base continued
Frozen Rolling Base (Continued)
  • Benefit:
    • One time consumption decrease will benefit the PHA over the length of the contract rather than only for three years
    • PHA is funded for 100% of consumption savings rather than only 75% of consumption savings
frozen rolling base continued1
Frozen Rolling Base (Continued)
  • PHA must prepare separate forms for projects and utilities involved
  • Follow specific frozen rolling base instructions on form HUD-52722, pages 6 and 7
  • 990.185(1)
exercise 2
Exercise 2
  • Refer to “Utilities Expense Level – Exercise 2” and form HUD-52722, Operating Fund Calculation of Utilities Expense Level
module 4 other formula expenses add ons

Module 4: Other Formula Expenses (Add-Ons)

Calculation and Submission of Operating Subsidy Training

line 07 self sufficiency
Line 07 – Self-sufficiency
  • Elderly/Disabled Service Coordinator (EDSC) Program only (no other ROSS programs)
  • Only applies to 1995 grant recipients
  • Based on allowable amount in FY 2004, adjusted for inflation
line 07 self sufficiency continued
Line 07 – Self-sufficiency (continued)
  • For reasonable cost of salary, fringe benefits, and related administrative costs
  • Supporting documentation must be provided in Section 4, Remarks
  • 990.190(a)
line 08 energy loan amortization
Line 08 – Energy loan amortization
  • Must be HUD-approved
  • Includes the following costs accrued during the funding period:
    • Principal and interest for the energy conservation measures
    • Other direct costs related to the energy project
  • 990.185(a)(3)
line 09 payment in lieu of taxes
Line 09 – Payment in lieu of taxes
  • PILOT = 10% of shelter rent
  • Shelter rent =

[Net Tenant Rental Revenue, FDS Line 703]

minus

[Utility Costs, Financial Data Schedule Lines 931 + 932 + 933 + 934 + 935 + 937 + 938]

line 09 payment in lieu of taxes continued
Line 09 – Payment in lieu of taxes (continued)
  • PHA receives 10% of shelter rent even if it has cooperation agreement with locality to pay less
  • If shelter rent is a negative number, PHA receives $0 for PILOT
line 10 cost of an independent audit
Line 10 – Cost of an independent audit
  • Most recent actual audit costs from FDS submitted in FASS-PH
  • From FDS, Line 912, Auditing fees
  • Operating Fund portion only
line 10 cost of an independent audit continued
Line 10 – Cost of an independent audit (continued)
  • If PHA does not intend to have audit for the period, must enter zero
  • If PHA intends to have audit for the period, but has no recent actual audit cost in FASS-PH, PHA must work with FO to establish audit cost
  • If funding for audit is requested, audit must be completed
  • 990.190(d)
line 11 funding for resident participation activities
Line 11 – Funding for resident participation activities
  • $25 per unit
  • Based on units occupied by:
    • Public housing resident
    • PHA employee, police officer, or other security personnel not otherwise eligible for public housing
line 12 asset management fee
Line 12 – Asset management fee
  • Based on total ACC unit months
  • PHAs with at least 250 units:
    • $4 per unit month
  • PHAs with fewer than 250 units:
    • Must transition to asset management to receive add-on
    • $2 per unit month
line 12 asset management fee continued
Line 12 – Asset management fee (continued)
  • Asset management fee =

[Total Unit Months]

x

[$2 or $4]

  • Section 3, Part A, Line 12 =

[Section 2, Column A, Line 15]

x

[$2 or $4]

line 13 information technology fee
Line 13 – Information technology fee
  • Based on total ACC unit months
  • $2 per unit month
  • Information technology fee =

[Total Unit Months]

x

[$2]

line 14 asset repositioning fee
Line 14 – Asset repositioning fee
  • Discussed in “Deleted Units” module
line 15 costs attributable to changes in federal law regulation or economy
Line 15 – Costs attributable to changes in Federal law, regulation, or economy
  • No amount permitted at this time
  • Bookmark for future use
line 16 total add ons
Line 16 – Total Add-Ons
  • Sum of Part A, Lines 07 through 15

Total Add-Ons auto-calculated on Line 16

line 17 total formula expenses
Line 17 – Total Formula Expenses
  • Sum of Part A, Lines 04, 06, and 16

Total Formula Expenses auto-calculated on Line 17

exercise 3
Exercise 3
  • Refer to “Other Formula Expenses (Add-Ons) – Exercise 3” and form HUD-52723, Operating Fund Calculation of Operating Subsidy
module 5 formula income

Module 5: Formula Income

Calculation and Submission of Operating Subsidy Training

formula income summary
Formula Income Summary
  • Formula income is based on:
    • Rent charged to tenants
    • Unit months leased
  • Data obtained from PHA’s 2004 audited financial information in the FDS submitted in FASS-PH
frozen at 2004 level
Frozen at 2004 Level
  • Formula income frozen at 2004 level
    • Not recalculated for FFY 2007 through 2009
  • Exceptions:
    • Appeal for severe local economic hardship
    • Adjustment for changes in tenant utility allowances
line 01 pum formula income
Line 01 – PUM formula income

[Rent charged to tenants, 2004]

(from FDS Line 703, Net tenant rental revenue)

÷

[Unit months leased, 2004]

(from FDS Line 1121, Number of unit months leased)

line 01 pum formula income1
Line 01 – PUM formula income

PUM formula income

auto-populated by HUD on Line 01

adjustments in rental income changes in tenant utility allowances
Adjustments in Rental IncomeChanges in Tenant Utility Allowances
  • Rent collections and rental income will change as tenant utility allowances increase or decrease
  • Frozen FY 2004 income level needs to be adjusted
  • Exception:
    • If PHA is HUD-approved to freeze the tenant utility allowance base as the result of energy conservation measures, then the PHA should not report the allowance in HUD-52723
changes in tenant utility allowances
Changes in Tenant Utility Allowances

Results In:

Tenant Utility Allowances

Rental Income

Operating Subsidy

changes in tenant utility allowances1
Changes in Tenant Utility Allowances

Results In:

Tenant Utility Allowances

Rental Income

Operating Subsidy

line 02 pum change in utility allowances
Line 02 – PUM change in utility allowances
  • Decrease over 2004 entered as positive
  • Increase over 2004 entered as negative in brackets

Enter PUM change in utility allowances on Line 02

calculation of change in utility allowances step 1
Calculation of Change in Utility AllowancesStep 1
  • PUM Tenant utility allowances, 2004 =

[Tenant utility allowances, 2004]

(from PHA records)

÷

[Unit months leased, 2004]

(from FDS line 1121, Number of unit months leased)

calculation of change in utility allowances step 2
Calculation of Change in Utility AllowancesStep 2
  • PUM Tenant utility allowances, RP =

[Tenant utility allowances, reporting period]

(from PHA records)

÷

[Unit months leased, reporting period]

(from PHA records)

calculation of change in utility allowances step 3
Calculation of Change in Utility AllowancesStep 3
  • PUM Change in utility allowances =

[PUM tenant utility allowances, 2004]

(Step 1)

minus

[PUM tenant utility allowances, reporting period]

(Step 2)

line 03 pum adjusted formula income
Line 03 – PUM adjusted formula income

[PUM formula income]

(Line 01)

+

PUM change in utility allowances

(Line 02)

line 03 pum adjusted formula income1
Line 03 – PUM adjusted formula income

PUM adjusted formula income is auto-calculated on Line 03

line 04 total formula income
Line 04 – Total Formula Income

[PUM adjusted formula income]

(Section 3, Part B, Line 03)

x

[Total eligible unit months]

(Section 2, Line 15, Column B)

line 04 total formula income1
Line 04 – Total Formula Income

Total Formula Income auto-calculated on Line 04

exercise 4
Exercise 4
  • Refer to “Formula Income – Exercise 4” and form HUD-52723, Operating Fund Calculation of Operating Subsidy
module 6 transition policy and completion of form

Module 6: Transition Policy and Completion of Form

Calculation and Submission of Operating Subsidy Training

objectives
Objectives
  • Review Transition Schedule/Transition Funding
  • Explain Stop Loss Provision
  • Finalize HUD-52723 Form
transition policy
Transition Policy
  • Subpart F
    • Sections 990.220 – 990.235
  • Notice PIH 2006-14
    • Detailed guidance on calculation of PUM Transition Amount
    • Includes seven criteria for asset management compliance
transition funding
Transition Funding
  • Transition Funding
  • Transition Funding is similar to “Add-on”
  • EUM x PUM Transition Amount
pum transition amount
PUM Transition Amount
  • (Final Rule Subsidy Level) - (Interim Rule Subsidy Level)
  • Use FY 2004 Data for Calculation
  • Calculated on a PUM Basis
  • Modified Final Rule Formula
transition schedule decliners
Transition Schedule - Decliners
  • Year 1 - 24% of PUM transition (FFY 2007)
  • Year 2 - 43% of PUM transition (FFY 2008)
  • Year 3 - 62% of PUM transition (FFY 2009)
  • Year 4 - 81% of PUM transition (FFY 2010)
  • Year 5 - 100% of PUM transition (FFY 2011) or Normal Funding under Final Rule
transition schedule gainers
Transition Schedule - Gainers
  • Year 1 - 50% of PUM transition (FFY 2007)
  • Year 2 - 100% of PUM transition (FFY 2008) or Normal Funding under Final Rule
transition policy gainers example1
Transition Policy – GainersExample

*Value is negative because the PHA’s operating subsidy is reduced by transition policy.

stop loss
Stop Loss
  • Subpart H
  • Opportunity to limit funding reduction
  • PHAs must be Asset Management Compliant
  • Calculation based on PUM transition amount
moving to work mtw
Moving-to-Work (MTW)
  • Moving-to-Work (MTW) – Part C Line 1
  • 990.165
moving to work mtw phas
Moving-to-Work (MTW) PHAs
  • Block Grant PHAs
    • Receive an operating subsidy as provided in Attachment A of MTW Agreements
    • Continue to have the right to request extensions of, or modifications to, MTW Agreements
  • 990.165
part d calculation of formula amount
Part DCalculation of Formula Amount
  • Formula Calculation
  • Part A – Part B + Part C
  • (Formula Expenses) – (Formula Income) + (Other Formula Provisions)
part d calculation of formula amount1
Part DCalculation of Formula Amount
  • Cost of Independent Audit
  • Same as Line 10 in Part A
part d calculation of formula amount2
Part D Calculation of Formula Amount
  • Formula amount
  • Greater of Formula Calculation or Audit
part e calculation of operating subsidy
Part ECalculation of Operating Subsidy
  • Subpart E
  • Use of HUD Databases to Calculate Formula
  • PHA’s Responsibility to Submit Timely Data
part e calculation of operating subsidy1
Part ECalculation of Operating Subsidy
  • Formula amount
  • Not Necessarily the Subsidy Amount
  • Completed by HUD
part e calculation of operating subsidy2
Part ECalculation of Operating Subsidy
  • Adjustments due to availability funds
  • Based on Proration of Formula Amount
  • (Formula Amount) x (Proration %)
part e calculation of operating subsidy3
Part ECalculation of Operating Subsidy
  • HUD discretionary adjustments
  • Will vary by PHA
part e calculation of operating subsidy4
Part ECalculation of Operating Subsidy
  • Funds Obligated for Period
  • (Formula Amount) – (Appropriations Adjustment) – (HUD Adjustment)
module 7 deleted units

Module 7: Deleted Units

Calculation and Submission of Operating Subsidy Training

objectives1
Objectives
  • Define Deleted Unit
  • Correctly Remove Deleted Unit Data from Reporting Period in HUD-52723
  • Understand Implications of Deleted Units on HUD-52722
  • Review Asset Repositioning Fee
definition
Definition
  • 990.155
  • All units in a project or an entire building in a project which are eligible for Asset Repositioning Fee
  • Units removed from ACC without Asset Repositioning Fee
asset repositioning fee
Asset Repositioning Fee
  • 990.190
  • Applications for Demolition or Disposition must be HUD Approved to receive Asset Repositioning Fee
  • Supplements Demolition and Disposition Costs
  • Asset Repositioning Fee replaces Operating Subsidy
asset repositioning fee expenses
Asset Repositioning Fee Expenses
  • Administration and Management
  • Tenant Relocation
  • Minimum Protection and Services
asset repositioning fee schedule demolition units
Asset Repositioning Fee ScheduleDemolition Units
  • 75% of PEL for first 12 months
  • 50% of PEL for second 12 months
  • 25% of PEL for third 12 months
asset repositioning fee schedule disposition units
Asset Repositioning Fee Schedule Disposition Units
  • 75% of PEL for first 12 months
  • 50% of PEL for second 12 months
asset repositioning fee funding
Asset Repositioning Fee Funding
  • Continues Despite Actual Expenses
  • Continues Despite Actual Disposition or Demolition Schedule
  • Continues Despite Replacement Vouchers or New ACC Units
replacement of prior add ons
Replacement of Prior Add-ons
  • Costs Attributable to Deprogrammed Units
  • Phase Down for Demolitions
    • Determine Remaining Asset Repositioning Schedule as of Jan 1, 2007
asset repositioning fee timeline
Asset Repositioning Fee Timeline

“Fee begins on the first day of the next quarter six months after the date the first unit becomes vacant after the relocation date included in the approved relocation plan.”

asset repositioning fee timeline continued
Asset Repositioning Fee Timeline (continued)
  • HUD-approval of demolition or disposition with tenant relocation plan
  • Date of first vacancy
  • Add six months to vacancy date and determine the next quarter start date
  • Asset repositioning can only begin on 1/1, 4/1, 7/1, or 10/1
asset repositioning units impact on hud 52723
Asset Repositioning Units Impact on HUD-52723
  • Units no longer eligible for Operating Subsidy due to Asset Repositioning
  • Must “Delete” Data in Reporting Period from Lines 01 to 11
  • “Deleted” Units Reported on Line 12 - Units Eligible for Asset Repositioning Fee
categorization of unit months
Categorization of Unit Months
  • Delete Unit Month Data by Categorization
  • Use Reporting Period Data
  • Delete based on Asset Repositioning Date
asset repositioning unit months
Asset Repositioning Unit Months
  • Line 12 – Units eligible for asset repositioning
  • Unit months removed from Lines 01 to 11 should be reported on Line 12
how to identify unit month category
How to Identify Unit Month Category
  • Crosswalk – Alignment of Reporting and Funding Period
  • Category in Reporting Period Determines Line to Remove
asset repositioning fee impact on hud 52722
Asset Repositioning FeeImpact on HUD-52722
  • Actual Consumption (Reporting Period)
  • Actual Utility Costs (Reporting Period)
  • Rolling Base
  • Multi-Year Impact
asset repositioning fee deletion of consumption data
Asset Repositioning FeeDeletion of Consumption Data
  • Based on First Vacancy Date after HUD Approved Relocation Date
  • Scenario #1
    • 12 Months of Utility Data in Line 1 – Actual Consumption
  • Scenario #2
    • Less than 12 Months of Utility Data in Line 1 – Actual Consumption
deletion of consumption data example
Deletion of Consumption Data Example
  • First unit in a project approved for asset repositioning vacated on 1/1/2007
  • Unit generated 100 kwh of electricity consumption annually
  • Unit kwh consumption cost $100 annually
asset repositioning fee deletion of consumption data1
Asset Repositioning FeeDeletion of Consumption Data

Partial Year of Data

Full Year of Data

special provision for calculation of uel
Special Provision for Calculation of UEL
  • Unit Months for which actual consumption is included…..
  • Reinserts deleted units into Eligible Unit Months calculation for HUD-52722
  • Units reported in Line 17 still include consumption data in HUD-52722
  • j
other criteria for deleted unit rolling base adjustment
Other Criteria for “Deleted Unit” Rolling Base Adjustment
  • Units removed from ACC without Asset Repositioning Fee
  • Switch from PHA Paid to Tenant Paid Utilities
demolition and disposition units adjustment to rolling base
Demolition and Disposition Units Adjustment to Rolling Base
  • If less than 10% of Units in a Building are Demolished/Disposed
    • No Adjustment to 52722
  • If less than 5 Units in a Building are Demolished/Dispose
    • No Adjustment to 52722
  • Consumption data flows through Rolling Base
exercise 5
Exercise 5
  • Refer to “Deleted Units – Exercise 5” and forms HUD-52723 and HUD-52722
module 8 new units

Module 8: New Units

Calculation and Submission of Operating Subsidy Training

objectives2
Objectives
  • Define New Unit
  • Correctly Place New Unit Data on Form HUD-52723
  • Understand Implications of New Units on HUD-52722 – (Rolling Base)
definition1
Definition
  • 990.155
  • Unit Added to ACC
  • Occupied by Eligible Family
  • Added During or After Reporting Period
new unit status
New Unit Status
  • First Day of Month
  • Last Day of Month
  • Consistency – Same for Both New Units and Unit Categorization
  • Assumed to be Fully Occupied for Funding Period
impact on hud 52723
Impact on HUD-52723
  • Eligible Unit Months
  • Resident Participation
  • Asset Management Fee
  • IT Fee
  • UEL/PEL/Formula Income
impact on line 01 occupied dwelling units
Impact on Line 01 – Occupied Dwelling Units
  • Occupied Dwelling Units
  • Includes Only Partial Year of New Unit Data
  • 0 to 12 Unit Months per Unit
impact on line 03 new units
Impact on Line 03 – New Units
  • New Units – Eligible in FY 2007
  • Eligible for Funding but Not Reported
  • Eligible for 0 to 12 Unit Months per Unit
impact on line 04 new units
Impact on Line 04 – New Units
  • New Units – Eligible in FY 2006
  • Not Included in FY 2006 Funding
  • Eligible for 0 to 3 Unit Months per Unit
new unit categories
New Unit Categories
  • Category #1: Units Added During Reporting Period (7/1/2005 to 6/30/2006)
  • Category #2: Units Added After Reporting Period but Before FY 2006 Final Revision (7/1/2006 to 7/15/2006)
  • Category #3: Units Added After Reporting Period and After FY 2006 Final Revision in CY 2006 (7/16/2006 to 12/31/2006)
  • Category #4: Units Added in Funding Period (1/1/2007 to 7/15/2007)
impact on hud 52722
Impact on HUD-52722
  • Need to Annualize New Unit Consumption
  • Rolling Base Changes
  • Multi-Year Impact
impact on hud 52722 new unit revisions
Impact on HUD-52722New Unit Revisions
  • No Changes to HUD-52722 Due to New Unit Revisions
  • New Units Added After Reporting Period do not require update to UEL Calculation
  • UEL is PUM Base, Utility Expense Funded through EUM Increase
section 1 general information3
Section 1 – General Information
  • Unit Change Indicator Box
section 2 current consumption
Section 2 – Current Consumption
  • Line 1 – Actual Consumption
  • Matches Reporting Period (7/1/2005 to 6/30/2006)
  • Includes New and Existing Unit Consumption Data
section 3 rolling base consumption
Section 3 – Rolling Base Consumption
  • Line 7 – Actual Consumption for New Units
  • New Consumption Data is added to Rolling Base
section 6 payable consumption
Section 6 – Payable Consumption
  • Line 14 – Annualization of Consumption for New Units
  • Estimates missing new unit consumption data from reporting period
  • Line 7 + Line 14 should equal 12 months of consumption
hud 52722 additional reporting requirements
HUD-52722 Additional Reporting Requirements
  • Consumption Data attached with HUD-52722
  • Consumption Estimate Methodology attached with HUD-52722
section 3 rolling base consumption1
Section 3 – Rolling Base Consumption
  • Does not include New Unit Utility Consumption Data
impact on rolling base year 1 new units added
Impact on Rolling BaseYear 1 - New Units Added
  • No New Unit Consumption Data reported in Rolling base
  • Use Line 07 – Actual Consumption for New Units
impact on rolling base years 2 to 5 after new units added
Impact on Rolling BaseYears 2 to 5 After New Units Added
  • Line 2 (Rolling base year 1) = Partial Year Data
    • Report zero in rolling base year 1
    • Use Line 7 – Actual Consumption for New Units
  • Line 2 (Rolling base year 1) = Full Year Data
    • Rolling base year 1 as reported
    • Rolling base year 2 or 3 as reported or previous rolling base year
    • Line 7 equals 0
adjustment of consumption data example
Adjustment of Consumption Data Example
  • Unit is added to the ACC and occupied by an eligible family on February 1, 2006
  • Unit consumed 50 kwh of electricity consumption during reporting period
  • Unit is expected to consume 120 kwh of electricity consumption annually
adjustments to hud 52722 new unit consumption data
Adjustments to HUD-52722New Unit Consumption Data

Partial Year of Data

Full Year of Data

Adjustment

exercise 6
Exercise 6
  • Refer to “New Units – Exercise 6” and forms HUD-52723 and HUD-52722