[Federal Register Volume 63, Number 17 (Tuesday, January 27, 1998)] [Notices] [Pages 4090-4146] From the Federal Register Online via the Government Publishing Office [www.gpo.gov] [FR Doc No: 98-1941] [[Page 4089]] _______________________________________________________________________ Part VI Department of Housing and Urban Development _______________________________________________________________________ Notice of 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. 63, No. 17 / Tuesday, January 27, 1998 / Notices [[Page 4090]] DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT [Docket No. FR-4290-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 of factors for determining public housing agency administrative fees for operation of the Section 8 rental voucher, rental certificate and moderate rehabilitation (including moderate rehabilitation single room occupancy and shelter plus care single room occupancy) programs. ----------------------------------------------------------------------- SUMMARY: This Notice transmits the schedule of monthly per unit fee amounts for use in determining the on-going administrative fee for housing agencies (HAs) administering the rental voucher, rental certificate and moderate rehabilitation programs during Federal Fiscal Year 1998. The procedures for calculating the earned administrative fees will be issued in an ensuing Notice. EFFECTIVE DATE: Procedures in this Notice will be used to review and approve the administrative fees stated in the HA's year-end financial statements for appropriateness for HA fiscal years ending on December 31, 1997; March 31, 1998; June 30, 1998; and September 30, 1998. These procedures may also be used to project earned administrative fees in the annual HA budget. This Notice applies to that portion of the HA fiscal year that falls within Federal Fiscal Year (FY) 1998 (October 1, 1997 to September 30, 1998). FOR FURTHER INFORMATION CONTACT: Gerald J. Benoit, Senior Program Advisor, Office of Public and Assisted Housing Program Delivery, 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 HUD's TDD 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), under section 3204 (h) of the Paperwork Reduction Act of 1980 (44 U.S.C. 3501-3520), and have been assigned OMB control number 2577-0149. 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) The HUD-Independent Agencies Appropriations Act for Fiscal Year 1997 (P.L. 104-204) changed the method to be used in calculating HA administrative fees (see PIH Notice 97-11 issued March 11, 1997). The HA earns an administrative fee for the rental voucher, rental certificate, and moderate rehabilitation programs based on the total number of units under a housing assistance payments contract. This includes the moderate rehabilitation single room occupancy and shelter plus care single room occupancy programs. The law also provides that HUD may approve preliminary fees of $500 per unit for the initial funding increment for the cost of expenses the HAs incur in the first year an HA administers a tenant-based rental voucher or rental certificate program. This provision applies to HAs that did not administer a tenant-based rental voucher or certificate program before September 26, 1996. 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 single room occupancy program. Additional administrative fees may be approved by HUD Headquarters for costs incurred in assisting families who experience difficulty in obtaining appropriate housing and for extraordinary costs as determined by HUD Headquarters. II. Method to Determine Per Unit On-Going Administrative Fee (a) Published Fee Amounts The following is a schedule of monthly per unit fee amounts to be used by HAs in preparing annual operating budgets and by HUD in approving fiscal year-end financial statements. The tables are organized by the HUD established fair market rent areas and show the monthly fee amounts a HA will earn for each unit under a housing assistance payments contract on the first day of the applicable month. HUD determined the per-unit monthly fee amounts using Bureau of Labor Statistics (BLS) data on local government wages (ES 202 Series). HUD adjusted the FY 97 monthly administrative fee per unit to develop the FY 98 administrative fee, effective for units assisted during the period from October 1, 1997 through September 30, 1998. The FY 98 administrative fee is calculated by multiplying the administrative fee amounts published in the Federal Register on March 12, 1997, by the percentage of change in the government wages using the most recent BLS data. III. Monthly Fee Schedule (a) Column A: Fees for 600 Units or Less The amount in column A is the monthly per unit fee amount to be applied to the first 7,200 unit months (600 units) for the rental certificate and rental voucher programs combined and the first 7,200 unit months (600 units) for housing assistance payment contracts a HA has executed for moderate rehabilitation, including the moderate rehabilitation single room occupancy program and the shelter plus care single room occupancy program, during Federal FY 98 (October 1, 1997 to September 30, 1998). Based on the applicable fiscal year end (FYE), a HA must use the following number of unit months to calculate its ongoing administrative fee for FY 98: FYE December 31--1st quarter FY 98--Up to 1,800 unit months FYE March 31--2nd quarter FY 98--Up to 3,600 unit months FYE June 30--3rd quarter FY 98--Up to 5,400 unit months FYE September 30--4th quarter FY 98--Up to 7,200 unit months (b) Column B: Fees for Units in Excess of 600 Units The amount in column B must be used to determine the administrative fee for FY 98 unit months in excess of the administrative fees for the first 600 units, for which fees were calculated in accordance with paragraph (a). The excess unit months, based on the HA's FYE and the number of rental voucher, rental certificate, and moderate rehabilitation units under housing assistance payment contracts during FY 98, are multiplied by the monthly fee per unit in column B. Column A and column B are not used for HA-owned units. (c) Column C: Fees for HA-Owned Units The monthly per unit fee amount in column C will be multiplied by the number of unit months available for the rental voucher, rental certificate, and moderate rehabilitation units owned by the HA and that are under housing assistance payments contracts during Federal FY 98. Column A and column B fee amounts are not used for HA-owned units. [[Page 4091]] (d) 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 approve additional fees 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 Section 8 administrative fees. Furthermore, the amounts shown do not include preliminary fees. 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 following schedule: IV. Findings and Certifications Environmental Impact In accordance with 24 CFR 50.19(c)(6) of the HUD regulations, the policies and procedures contained in this notice set forth rate determinations and related external administrative requirements and procedures which do not constitute a development decision that affects the physical condition of specific project areas or building sites, and therefore are categorically excluded from the requirements of the National Environmental Policy Act. Executive Order 12612, Federalism 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. The notice pertains to the determination of administrative fees for HAs administering the rental voucher, rental certificate and moderate rehabilitation programs during Federal FY 98, and does not alter the established roles of the Department, the States, and local governments. Catalog of Federal Domestic Assistance Number The Catalog of Federal Domestic Assistance Number for this program is 14.850. Dated: January 13, 1998. Kevin Emanuel Marchman, Assistant Secretary for Public and Indian Housing. 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