24 C.F.R. Appendix B to Part 1000—IHBG Block Grant Formula Mechanisms
Title 24 - Housing and Urban Development
1. The Indian Housing Block Grant Formula consists of two components, the Formula Current Assisted Stock (FCAS) and Need. Therefore, the formula allocation before adjusting for the statutory requirement that a tribe's minimum grant will not be less than the tribe's FY 1996 Operating Subsidy and Modernization funding, can be represented by: unadjGRANT = FCAS + NEED. 2. NAHASDA requires the current assisted stock be provided for before allocating funds based on need. Therefore, FCAS must be calculated first. FCAS consists to two components, Operating Subsidy (OPSUB) and Modernization (MOD) such that: FCAS = OPSUB + MOD. 3. OPSUB consists of three main parts: Number of Low-Rent units; Number of Section 8 units; and Number of Mutual Help and Turnkey III units. Each of these main parts are adjusted by the FY 1996 national per unit subsidy, an inflation factor, and local area costs as reflected by the greater of the AEL factor or FMR factor. The AEL factor as defined in §1000.302 as the difference between a local area Allowable Expense Level (AEL) and the national weighted average for AEL. The FMR factor is also defined in §1000.302 as the difference between a local area Fair Market Rent (FMR) and the national weighted average for FMR. So, expanding OPSUB gives: OPSUB = [LR * LRSUB + (MH+TK) * HOSUB + S8 * S8SUB] * INF * AELFMR Where: LR = number of Low-Rent units. LRSUB = FY 1996 national per unit average subsidy for Low-Rent units = $2,440. MH+TK = number of Mutual Help and Turnkey III units. HOSUB = FY 1996 national per unit average subsidy for Homeownership units = $528. S8 = number of Section 8 units. S8SUB = FY 1996 national per unit average subsidy for Section 8 units = $3,625. INF = inflation adjustment determined by the Consumer Price Index for housing. AELFMR = greater of AEL Factor or FMR Factor weighted by national average of AEL Factor and FRM Factor. AEL FACTOR = AEL/NAAEL. AEL = local Allowable Expense Level. NAAEL = national weighted average for AEL. FMR FACTOR = FMR/NAFMR. FMR = local Fair Market Rent. NAFMR = national weighted average for FMR. NAAELFMR = national weighted average for greater of AEL Factor or FMR factor. For estimating FY 1998 allocations: NAAEL = 240.224. NAFMR = 459.437. NAAELFMR = 1.144. 4. MOD considers only the number of Low-Rent, and Mutual Help and Turnkey III units. Each of these are adjusted by the FY 1996 national per unit subsidy for modernization, an inflation factor and the local Total Development Costs relative to the weighted national average for TDC. So, expanding MOD gives us: MOD = [LR + (MH+TK)] * SUB * INF * TDC/NATDC. Where: LR = number of Low-Rent units. MH+TK = number of Mutual Help and Turnkey III units. SUB = FY 1996 national per unit average subsidy for modernization. INF = inflation adjustment determined by the Consumer Price Index for housing. TDC = Local Total Development Costs defined in §1000.302. NATDC = weighted national average for TDC. For estimating FY 1998 allocations: SUB = $1,974. NATDC = $103,828. 5. Now that calculation for FCAS is complete, we can determine how many funds will be available to allocate over the NEED component of the formula by calculating: NEED FUNDS = APPROPRIATION—NATCAS. Where: APPROPRIATION = dollars provided by Congress for distribution by the IHBG formula. NATCAS = summation of CAS allocations for all tribes. For estimating FY 1998 allocations: APPROPRIATION = $590 million. NATCAS = $236,147,110. 6. Two iterations are necessary to compute the final Need allocation. The first iteration consists of seven weighted criteria that allocate need funds based on a tribe's population and housing data. This allocation is then adjusted for local area cost differences based on TDC relative to the national weighted average. This can be represented by: NEED1 = [(0.11 * PER / NPER) + (0.13 * HHLE30 / NHHLE30) + (0.07 * HH30T50 / NHH30T50) + (0.07 * HH50T80 / NHH50T80) + (0.25 * OCRPR / NOCRPR) + (0.22 * SCBTOT / NSCBTOT) + (0.15 * HOUSHOR / NHOUSHOR)] * NEED FUNDS * (TDC/NATDC). Where: PER = American Indian and Alaskan Native (AIAN) persons. NPER = national total of PER. HHLE30 = AIAN households less than 30% of median income. NHHLE30 = national total of HHLE30. HH30T50 = AIAN households 30% to 50% of median income. NHH30T50 = national total of HH30T50. HH50T80 = AIAN households 50% to 80% of median income. NHH50TO80 = national total of HH50T80. OCRPR = AIAN households crowded or without complete kitchen or plumbing. NOCRPR = national total of OCRPR. SCBTOT = AIAN households paying more than 50% of their income for housing. NSCBTOT = national total SCBTOT. HOUSHOR = AIAN households with an annual income less than or equal to 80% of formula median income reduced by the combination of current assisted stock and units developed under NAHASDA. NHOUSHOR = national total of HOUSHOR. TDC = Local Total Development Costs defined in §1000.302. NATDC = weighted national average for TDC. For estimating FY 1998 allocations: NPER = 953,254. NHHLE30 = 78,496. NHH30T50 = 52,514. NHH50T80 = 59,793. NOCPR = 80,581. NSCBTOT = 34,080. NHOUSHOR = 23,840. NEEDFUNDS = $353,852,890. NATDC = $104,956. 7. The second iteration in computing Need allocation consists of adjusting the Need allocation computed above to take into account the $50,000 baseline funding for the first year only and then $25,000 per year for each year thereafter through FY 2002. So, if in the first Need computation you have less than the minimum Needs funding level, your Need allocation will go up. But, if you have more than the minimum Needs funding level, your Need allocation will go down to adjust for the other Need allocations going up. We can represent this by: If NEED1 is less than MINFUNDING, then NEED = MINFUNDING. If NEED1 is greater than or equal to MINFUNDING, then NEED = NEED1−{mUNDERMIN$*[ (NEED1−MINFUNDING)/OVERMIN$]}. Where: MINFUNDING = minimum needs funding level. UNDERMIN$ = for all tribes with NEED1 less than MINFUNDING, sum of the differences between MINFUNDING and NEED1. OVERMIN$ = for all tribes with NEED1 greater than or equal to MINFUNDING, sum of the difference between NEED1 and MINFUNDING. For estimating FY 1998 allocations: MINFUNDING = $50,000. UNDERMIN$ = $4,919,224. OVERMIN$ = $335,022,114. 8. Now we have computed values for FCAS and NEED. This final step in computing the grant allocation is to adjust the sum of FCAS and NEED to reflect the statutory requirement that a tribe's minimum grant will not be less than that tribe's FY 1996 Operating Subsidy and Modernization funding. So, before adjusting for the minimum grant compute: unadjGRANT = FCAS + NEED where both FCAS and NEED are calculated above. 9. Now, apply test to determine if the GRANT (unadjusted for FY 1996) levels is greater than or equal to FY 1996 Operating Subsidy and Modernization funding. Let TEST = unadjGRANT—OPMOD96 . If TEST is less than 0, then GRANT = OPMOD96. If TEST is greater than or equal to 0, then GRANT = unadjGRANT—[UNDER1996 * (TEST / OVER1996)]. Where: OPMOD96 = funding received by tribe in FY 1996 for Operating Subsidy and Modernization UNDER1996 = for all tribes with TEST less than 0, sum of the absolute value of TEST. OVER1996 = for all tribes with TEST greater than or equal to 0, sum of TEST. For estimating FY 1998 allocations: UNDER1996 = $5,378,558. OVER1996 = $326,095,837. GRANT is the approximate grant amount in any given year for any given tribe. [63 FR 12373, Mar. 12, 1998; 63 FR 13105, Mar. 17, 1998]
Title 24: Housing and Urban Development
PART 1000—NATIVE AMERICAN HOUSING ACTIVITIES
Subpart F—Recipient Monitoring, Oversight and Accountability
Appendix B to Part 1000—IHBG Block Grant Formula Mechanisms
