24 C.F.R. § 990.230 PHAs that will experience a subsidy reduction.
Title 24 - Housing and Urban Development
(a) For PHAs that will experience a reduction in their operating subsidy, as determined in §990.225, such reductions will have a limit of: (1) 24 percent of the difference between the two funding levels in the first year following implementation of the formula contained in this part; (2) 43 percent of the difference between the two funding levels in the second year following implementation of the formula contained in this part; (3) 62 percent of the difference between the two levels in the third year following implementation of the formula contained in this part; and (4) 81 percent of the difference between the two levels in the fourth year following implementation of the formula contained in this part. (b) The full amount of the reduction in the operating subsidy level shall be realized in the fifth year following implementation of the formula contained in this part. (c) For example, a PHA has a subsidy reduction from $1 million under the formula in effect prior to implementation of the formula contained in this part to $900,000 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 reduction would be limited to $24,000 (24 percent of the difference). Thus, the PHA will receive an operating subsidy amount of this rule plus a transition-funding amount of $76,000 (the $100,000 difference between the two subsidy amounts minus the $24,000 reduction limit). (d) If a PHA can demonstrate a successful conversion to the asset management requirements of subpart H of this part, as determined under paragraph (f) of this section, HUD will discontinue the reduction at the PHA's next subsidy calculation following such demonstration, as reflected in the schedule in paragraph (e) of this section, notwithstanding §990.290(c). (e) The schedule of reductions for a PHA that will experience a reduction in subsidy is reflected in the table below. (f)(1) For purposes of this section, compliance with the asset management requirements of subpart H of this part will be based on an independent assessment conducted by a HUD-approved professional familiar with property management practices in the region or state in which the PHA is located. (2) A PHA must select from a list of HUD-approved professionals to conduct the independent assessment. The professional review and recommendation will then be forwarded to the Assistant Secretary for Public and Indian Housing (or designee) for final determination of compliance with the asset management requirements of subpart H of this part. (3) Upon completion of the independent assessment, the assessor shall conduct an exit conference with the PHA. In response to the exit conference, the PHA may submit a management response and other pertinent information (including, but not limited to, an additional assessment procured at the PHAs' own expense) within ten working days of the exit conference to be included in the report submitted to HUD. (4) In the event that HUD is unable to produce a list of independent assessors on a timely basis, the PHA may submit its own demonstration of a successful conversion to asset management directly to HUD for determination of compliance. (5) The Assistant Secretary for Public and Indian Housing (or designee) shall consider all information submitted and respond with a final determination of compliance within 60 days of the independent assessor's report being submitted to HUD. [70 FR 54997, Sept. 19, 2005; 70 FR 61367, Oct. 24, 2005]
Title 24: Housing and Urban Development
PART 990—THE PUBLIC HOUSING OPERATING FUND PROGRAM
Subpart F—Transition Policy and Transition Funding
§ 990.230 PHAs that will experience a subsidy reduction.
---------------------------------------------------------------------------------------------------------------- Demonstration dated Funding period by Reduction limited to----------------------------------------------------------------------------------------------------------------Prior to year 1................. October 1, 2006.... 5 percent of the difference between the two funding levels.Year 1.......................... October 1, 2007.... 24 percent of the difference.Year 2.......................... October 1, 2008.... 43 percent of the difference.Year 3.......................... October 1, 2009.... 62 percent of the difference.Year 4.......................... October 1, 2010.... 81 percent of the difference.Year 5.......................... October 1, 2011.... Full reduction reached.----------------------------------------------------------------------------------------------------------------
