[Federal Register Volume 62, Number 48 (Wednesday, March 12, 1997)] [Notices] [Pages 11526-11583] From the Federal Register Online via the Government Publishing Office [www.gpo.gov] [FR Doc No: 97-5925] [[Page 11525]] _______________________________________________________________________ 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. 48 / Wednesday, March 12, 1997 / Notices [[Page 11526]] DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT [Docket No. FR-4156-N-02] Notice of Annual Factors for Determining Public Housing Agency Administrative Fees for the Section 8 Rental Voucher, Rental Certificate and Moderate Rehabilitation Programs Note: This Notice is being republished to correct an error in the formatting of the attached administrative fees published on March 3, 1997, AT 62 FR 9488. AGENCY: Office of the Assistant Secretary for Public and Indian Housing, HUD. ACTION: Notice. ----------------------------------------------------------------------- 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 (Pub. 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 [[Page 11527]] Labor Statistics data from the ES-202 series. (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 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 [[Page 11528]] 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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