[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]


      

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Part II





Department of Housing and Urban Development





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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  

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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.

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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 (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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[FR Doc. 97-5925 Filed 3-11-97; 8:45 am]
BILLING CODE 4210-33-C