[Federal Register Volume 62, Number 41 (Monday, March 3, 1997)]
[Notices]
[Pages 9488-9634]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-5014]
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Part II
Department of Housing and Urban Development
_______________________________________________________________________
Annual Factors for Determining Public Housing Agency Administrative
Fees for the Section 8 Rental Voucher, Rental Certificate and Moderate
Rehabilitation Programs; Notice
Federal Register / Vol. 62, No. 41 / Monday, March 3, 1997 /
Notices
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DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
[Docket No. FR-4156-N-01]
Notice of Annual Factors for Determining Public Housing Agency
Administrative Fees for the Section 8 Rental Voucher, Rental
Certificate and Moderate Rehabilitation Programs
AGENCY: Office of the Assistant Secretary for Public and Indian
Housing, HUD.
ACTION: Notice.
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SUMMARY: This Notice announces the monthly per unit fee amounts for use
in determining the on-going administrative fee for public housing
agencies and Indian housing authorities (HAs) administering the rental
voucher, rental certificate and moderate rehabilitation programs
(including Single Room Occupancy and Shelter Plus Care) during Federal
Fiscal Year 1997.
EFFECTIVE DATE: HUD will use the procedures in this Notice to approve
year-end financial statements for HA fiscal years ending on December
31, 1996; March 31, 1997; June 30, 1997; and September 30, 1997. HAs
also may use these procedures to project earned administrative fees in
the annual HA budget. The procedures in this Notice apply to that
portion of the HA fiscal year that coincides with the Federal Fiscal
Year (FY) 1997 (i.e., from October 1, 1996, to September 30, 1997).
FOR FURTHER INFORMATION CONTACT: Gerald J. Benoit, Director, Operations
Division, Office of Rental Assistance, Office of Public and Indian
Housing, Department of Housing and Urban Development, Room 4220, 451
Seventh Street, SW, Washington, DC 20410-8000, telephone number (202)
708-0477. Hearing or speech impaired individuals may call TTY number
(202) 708-4594. (These numbers are not toll-free.)
SUPPLEMENTARY INFORMATION:
Paperwork Reduction Act Statement
The information collection requirements contained in this notice
have been approved by the Office of Management and Budget (OMB) in
accordance with the Paperwork Reduction Act of 1995 (44 U.S.C. 3501-
3520), and have been assigned OMB control number 2502-0348. An agency
may not conduct or sponsor, and a person is not required to respond to,
a collection of information unless the collection displays a valid
control number.
I. Purpose and Substantive Description
(a) In FY 95 HUD changed the way that HA administrative fees were
calculated. These new procedures were published in the Federal Register
on January 24, 1995 (60 FR 4764). HUD also issued an administrative
Notice PIH 96-22, dated April 19, 1996, providing more detailed
processing instructions. The system that HUD used to determine
administrative fees before FY 95 had three different rates that were
applied to the Section 8 existing housing fair market rents. Under the
new system implemented in FY 95, HAs were funded for pre-FY 89 funding
increments at a rate of 8.2 percent of a ``base amount'' for the
initial 600 rental vouchers and rental certificates and 7.79 percent of
a ``base amount'' for all rental vouchers and rental certificates above
600. This same system using a ``base amount'' was continued in FY 96.
(b) The Departments of Veterans Affairs and Housing and Urban
Development, and Independent Agencies Appropriations Act, 1997 (P.L.
104-204, 110 STAT. 2874) changed the method to be used in calculating
HA administrative fees. The law establishes a method for calculating HA
fees for the rental voucher, certificate, and moderate rehabilitation
(including Single Room Occupancy and Shelter Plus Care) programs in FY
97. The law, however, reduced the percentages for FY 97 effective for
the period from October 1, 1996 through September 30, 1997 to 7.5
percent of the HUD-determined ``base amount'' for the first 600 units
in an HA's rental voucher and rental certificate programs combined, and
for the first 600 units in an HA's moderate rehabilitation program, and
to 7 percent of the HUD-determined ``base amount'' for each additional
unit in these programs over 600. Furthermore, the law provides HUD may
provide a decreased fee for HA-owned units. For FY 97, HUD has
determined that HAs will earn an administrative fee for HA-owned rental
voucher, rental certificate and moderate rehabilitation units based on
3 percent of the ``base amount.''
The law also made changes with respect to preliminary fees and
administrative fees. Under the new law HUD may approve preliminary fees
of $500 per unit for the initial funding increment for the HA, but only
in the first year an HA administers a tenant-based rental voucher or
rental certificate program and only for an HA that did not administer a
tenant-based rental voucher or certificate program before September 26,
1996. For example, if an HA is currently administering a rental
certificate program and it receives its first funding increment under
the rental voucher program, the HA is not eligible to receive a
preliminary fee. The law does not provide for preliminary fees for the
regular moderate rehabilitation program or the moderate rehabilitation
single room occupancy program or the moderate rehabilitation shelter
plus care program. HUD may also approve additional administrative fees
for costs incurred in assisting families who experience difficulty in
obtaining appropriate housing and for extraordinary costs.
II. Applicability of HUD Notice PIH 96-22
On April 19, 1996, HUD issued a Notice (PIH 96-22) establishing the
procedures for the calculation of on-going administrative fees for the
rental voucher and rental certificate programs. The provisions of the
HUD Notice PIH 96-22 do not apply for unit months commencing October 1,
1996. Instead, a revised administrative fee HUD Notice will be issued.
III. Method To Determine Per Unit On-Going Administrative Fee
(a) Method
A housing agency is paid an on-going administrative fee for each
unit month for which a dwelling unit is covered by a housing assistance
payments contract. Under the system for FY 97, the on-going
administrative fee is:
7.5 percent of a ``base amount'' for the first 600 units
in an HA's rental voucher and rental certificate programs combined, and
for the first 600 units in an HA's moderate rehabilitation program.
7 percent of the ``base amount'' for each additional
rental voucher, rental certificate, or moderate rehabilitation unit
above the 600-unit threshold.
In FY 95 and FY 96, the ``base amount'' used by HUD was the higher
of (a) the FY 1993 fair market rent for a two-bedroom unit in the HA's
market area, or (b) the FY 94 fair market rent for a two-bedroom unit,
but not more than 103.5 percent of the FY 93 fair market rent. The new
law provides that this base amount may be adjusted in FY 97 to reflect
changes in wage data or other objectively measurable data that reflect
the cost of administering the program in FY 96. Accordingly, the
monthly FY 97 per unit fee amounts published in this notice were
derived from the new base amounts that have been adjusted to reflect
average local government wages as measured by the most recent two years
of Bureau of Labor Statistics data from the ES-202 series.
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(b) Published Fee Amounts
HUD has attached a schedule of monthly per unit fee amounts for use
by HUD and HAs when preparing and approving HA budgets and fiscal year-
end financial statements. The tables are organized by the HUD-
established fair market rent areas and show the monthly fee amounts an
HA will earn for each unit under a housing assistance payments contract
on the first day of the applicable month.
(1) Column A
The amount in this column is the monthly per unit fee amount for up
to 7,200 unit months (600 units) in Federal FY 97 in an HA's rental
voucher and rental certificate programs combined, and for up to 7,200
unit months (600 units) in Federal FY 97 in an HA's moderate
rehabilitation program. (This amount was developed by multiplying the
fee ``base amount'' by 7.5 percent.) For the HA's rental voucher and
rental certificate programs combined, and for the HA's moderate
rehabilitation program, the reimbursement is computed by multiplying
the number of unit months that were under a housing assistance payments
contract during Federal FY 97 by the monthly per unit fee amount in
column A (up to a maximum of 7,200 unit months during Federal FY 97).
The maximum number of unit months under a housing assistance payments
contract in Federal FY 97 during the HA's fiscal year that this revised
procedure is first implemented and for which the column A fee amount
may be used, depends on the HA fiscal year end:
December 31 HA--1,800 unit months (7,200 x .25 [3 months] of FY 97)
March 31 HA--3,600 unit months
June 30 HA--5,400 unit months
September 30 HA--7,200 unit months
(2) Column B
The amount in this column is the monthly per unit fee amount for
any unit months in Federal FY 97 in excess of 7,200 unit months (for
which a fee was calculated from column A) in the rental voucher and
rental certificate programs combined, and in excess of 7,200 unit
months in the moderate rehabilitation programs. This amount was
developed by multiplying the HUD established fee base amount by 7
percent. For the HA's rental voucher and rental certificate programs
combined, and for the HA's moderate rehabilitation program, the
reimbursement is computed by multiplying the number of unit months that
were under a housing assistance payments contract during Federal FY 97
that exceeds 7,200 unit months by the monthly per unit fee amount in
column B). The monthly per unit fee in column B will be multiplied by
the number of unit months that rental voucher, rental certificate and
moderate rehabilitation units under housing assistance payments
contracts during Federal FY 97 exceeds unit months for which a fee is
calculated from column A.
(3) Column C
The amount in this column is the monthly per unit fee amount for HA
owned units for Federal FY 97 under the rental voucher, rental
certificate, or moderate rehabilitation programs. This amount was
developed by multiplying a HUD established fee base by 3 percent. The
monthly per unit fee amount in column C will be multiplied by the
number of unit months that rental voucher, rental certificate, or
moderate rehabilitation units owned by the HA are under housing
assistance payments contracts during Federal FY 97.
(c) Future Year Publication Date
For subsequent fiscal years, HUD will publish an annual Notice in
the Federal Register establishing the monthly per unit fee amounts for
use in determining the on-going administrative fees for HAs operating
the rental voucher, rental certificate and moderate rehabilitation
programs in each metropolitan and each non-metropolitan fair market
rent area for that Federal fiscal year. The annual change in the per-
unit-month fee amounts will be based on changes in wage data or other
objectively measurable data, as determined by HUD, that reflect the
costs of administering the program.
The amounts shown on the attached schedule do not reflect the
authority given to HUD to increase the fee if necessary to reflect
extraordinary expenses such as the higher costs of administering small
programs and programs operating over large geographic areas or expenses
incurred because of difficulties some categories of families are having
in finding appropriate housing. HUD will consider HA requests for such
increased administrative fees. Furthermore, the amounts shown do not
include preliminary fees.
IV. Other Matters
Environmental Finding
This notice is categorically excluded from the requirements of 24
CFR part 50, the HUD regulations which implement section 102(2)(C) of
the National Environmental Policy Act of 1969 (NEPA). [See 24 CFR
Sec. 50.19(b)(3).] This notice does not require environmental review
because it does not alter physical conditions in a manner or to an
extent that would require review under NEPA or the other laws and
authorities cited at Sec. 50.4.
Federalism Impact
The General Counsel, as the Designated Official under section 6(a)
of Executive Order 12612, Federalism, has determined that the policies
contained in this notice will not have substantial direct effects on
States or their political subdivisions, or the relationship between the
federal government and the States, or on the distribution of power and
responsibilities among the various levels of government. As a result,
the notice is not subject to review under the Order. This notice
pertains to the determination of administrative fees for HAs
administering the rental voucher, rental certificate and moderate
rehabilitation programs during Federal Fiscal Year 1997, and does not
substantially alter the established roles of the Department, the
States, and local governments.
Impact on the Family
The General Counsel, as the Designated Official under Executive
Order 12606, The Family, has determined that this notice does not have
potential for significant impact on family formation, maintenance, and
general well-being within the meaning of the Executive Order and, thus,
is not subject to review under the Order. This notice pertains to the
determination of administrative fees for HAs administering the rental
voucher, rental certificate and moderate rehabilitation programs during
Federal Fiscal Year 1997, and does not substantially alter the
requirements of eligibility for the programs involved.
Accordingly, the Department publishes the monthly per unit fee
amounts to be used for determining HA administrative fees under the
rental voucher, rental certificate and moderate rehabilitation programs
as set forth on the schedule appended to this notice.
Dated: February 21, 1997.
Kevin Emanuel Marchman,
Acting Assistant Secretary for Public and Indian Housing.
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[FR Doc. 97-5014 Filed 2-28-97; 8:45 am]
BILLING CODE 4210-33-C