[Federal Register Volume 64, Number 48 (Friday, March 12, 1999)]
[Notices]
[Pages 12686-12742]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-6079]



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Part VI





Department of Housing and Urban Development





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Annual Factors for Determining Public Housing Agency Ongoing 
Administrative Fees for the Section 8 Rental Voucher, Rental 
Certificate and Moderate Rehabilitation Programs; Notice

  Federal Register / Vol. 64, No. 48 / Friday, March 12, 1999 / 
Notices  

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DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

[Docket No. FR-4455-N-01]


Notice of Annual Factors for Determining Public Housing Agency 
Ongoing 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.

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SUMMARY: This notice announces the monthly per unit fee amounts for use 
in determining the on-going administrative fee for housing agencies 
(HAs) administering the Section 8 rental voucher, rental certificate 
and moderate rehabilitation programs (including Single Room Occupancy 
and Shelter Plus Care) during Federal Fiscal Year (FY) 1999.

EFFECTIVE DATE: This notice is effective upon publication. HUD will use 
the procedures in this Notice to approve year-end financial statements 
for HA fiscal years ending on December 31, 1998; March 31, 1999; June 
30, 1999; and September 30, 1999. HAs also must use these procedures to 
project earned administrative fees in the annual HA budget. The 
procedures in this Notice apply to administrative fees earned for that 
portion of the HA fiscal year that falls in Federal FY 1999 (i.e., from 
October 1, 1998, to September 30, 1999).

FOR FURTHER INFORMATION CONTACT: Gerald J. Benoit, Acting Director, 
Real Estate and Housing Performance Division, Office of Public and 
Assisted Housing Program Delivery, 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 
(this is not a toll-free telephone number). Hearing or speech impaired 
individuals may access this number via TTY by calling the toll-free 
Federal Information Relay Service at 1-800-877-8339.

SUPPLEMENTARY INFORMATION:

I. Statutory Background

    HUD pays administrative fees to housing agencies (HAs) for the 
costs of administering the Section 8 rental certificate, rental 
voucher, and moderate rehabilitation programs, including the Single 
Room Occupancy and Shelter Plus care components. Section 202 of the 
Departments of Veterans Affairs and Housing and Urban Development, and 
Independent Agencies Appropriations Act, 1997 (Pub.L. 104-204, 110 
Stat. 2874, approved September 26, 1996) established the procedures for 
calculating these administrative fees before Federal FY 1999. The 
procedures were superseded by subsection 8(q) of the United States 
Housing Act of 1937 (42 U.S.C. 1437f(q)), as amended by section 547 of 
the Quality Housing and Work Responsibility Act of 1998 (Pub.L. 105-
276, 112 Stat. 2461, approved October 21, 1998) (QHWRA). Specifically, 
QHWRA raised the percentage (from 7.5 percent to 7.65 percent) of the 
``base amount'' used for calculating the administrative fees for the 
first 600 units in an HA's Section 8 programs.
    This notice announces the monthly per unit fee amounts for use in 
determining the on-going administrative fee for HAs administering the 
Section 8 rental voucher, rental certificate and moderate 
rehabilitation programs (including Single Room Occupancy and Shelter 
Plus Care) during FY 1999, and describes the methodology for 
calculating the administrative fees.

II. Calculating the On-Going Monthly Administrative Fee

    (a) Administrative Fee. 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 1999, the on-going monthly administrative fee is:
     7.65 percent of the ``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.
     7.0 percent of the ``base amount'' for each additional 
rental voucher, rental certificate, or moderate rehabilitation unit 
above the 600-unit threshold.
     3.0 percent of the ``base amount'' will be allowed for HA-
owned units.
    (b) The Base Amount. The ``Base Amount'' is the higher of:
    1. The FY 1993 fair market rent for a two-bedroom unit in the HA's 
market area; or
    2. The FY 1994 fair market rent for a two-bedroom unit, but not 
more than 103.5 percent of the FY 1993 fair market rent.

    Note: The base amount is adjusted annually to reflect average 
local government wages as measured by the most recent Bureau of 
Labor Statistics data on local government wages (the ES-202 series).

    (c) Special Fees.
    1. Preliminary Fees. HUD may pay preliminary fees up to $500 per 
unit for preliminary expenses to HAs only in the first year the HA 
administers a tenant-based assistance program, and only if the first 
year of administering the Section 8 program was begun prior to October 
21, 1998. Unless requested by HUD, the HA is not required to submit its 
justification for claimed preliminary fees to HUD. The justifications 
for preliminary fees must be kept on file and must be available to the 
HUD Field Office upon request.
    2. Hard to House. HUD may pay a special fee for costs incurred in 
assisting families who experience difficulty, as determined by the 
Secretary, in obtaining appropriate housing under the Section 8 
programs.
    3. Extraordinary Costs. HUD may pay a special fee for extraordinary 
costs incurred by the HA in the operation of the Section 8 program, as 
approved by the Secretary.

III. 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.
    (a) Column A: Fees for 600 Units or Less. The amount in column A is 
the monthly per unit fee amount to be applied for up to the first 600 
units (or 7,200 unit months) in FY 1999 in an HA's rental certificate 
and rental voucher programs combined (not including any HA-owned 
units). The 7,200 unit month figure is determined by multiplying 600 
(the maximum number of units) by 12 (the number of months in one year). 
The amount in column A is also used for the first 7,200 unit months in 
FY 1999 in an HA's moderate rehabilitation program, including the 
moderate rehabilitation single room occupancy program and the shelter 
plus care single room occupancy program (not including any HA-owned 
units).
    The monthly per unit fee is computed by multiplying the number of 
unit months that were under a housing assistance payments contract 
during FY 1999 by the monthly per unit fee amount in Column A (up to a 
maximum of 7,200 unit months during FY 1999). The maximum number of 
unit months for which the Column A fee amount may be used depends on 
the HA fiscal year end. Based on the applicable fiscal year end, an HA 
must use the following

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number of unit months to calculate its ongoing administrative fee for 
FY 1999:

------------------------------------------------------------------------
     FY 1999 fiscal year end           Maximum number of unit months
------------------------------------------------------------------------
December 31, 1998................  Up to 1,800 unit months.
March 31, 1999...................  Up to 3,600 unit months.
June 30, 1999....................  Up to 5,400 unit months.
September 30, 1999...............  Up to 7,200 unit months.
------------------------------------------------------------------------

    (b) Column B: Fees for Unit Months in Excess of the Column A Unit 
Months. Column B must be used to determine the monthly per unit fee 
amount for any unit months in FY 1999 in excess of the number of unit 
months specified in the above matrix, depending on the HA's FY 1999 
fiscal year end (not including any HA-owned units). The excess unit 
months, based on the HA's fiscal year end and the number of rental 
voucher, rental certificate, and moderate rehabilitation units under 
housing assistance payment contracts during FY 1999, are multiplied by 
the monthly per unit fee amount in column B.
    (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 FY 1999. Column A and column B fee 
amounts are not used for HA-owned units.
    (d) Fees for Unit Under Portability. The ongoing fee amounts for 
all portable units will be determined by using the monthly per unit 
ongoing administrative fee amounts in column B.
    (e) 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. Findings and Certifications

Paperwork Reduction Act Statement

    The information collection requirements contained in this notice 
have been approved by the Office of Management and Budget (OMB) under 
the Paperwork Reduction Act of 1995 (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.

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. This notice 
pertains to the determination of administrative fees for HAs 
administering the rental voucher, rental certificate, and moderate 
rehabilitation programs during FY 1999, and does not substantially 
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: March 2, 1999.
Deborah Vincent,
General Deputy Assistant Secretary for Public and Indian Housing.

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[FR Doc. 99-6079 Filed 3-11-99; 8:45 am]
BILLING CODE 4210-33-C