[Federal Register Volume 68, Number 87 (Tuesday, May 6, 2003)]
[Notices]
[Pages 24078-24136]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 03-11055]



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Part III





Department of Housing and Urban Development





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Notice of Annual Factors for Determining Public Housing Agency Ongoing 
Administrative Fees for the Housing Choice Voucher Program and Moderate 
Rehabilitation Programs; Notice

  Federal Register / Vol. 68, No. 87 / Tuesday, May 6, 2003 / Notices  

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DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

[Docket No. FR-4828-N-01]


Notice of Annual Factors for Determining Public Housing Agency 
Ongoing Administrative Fees for the Housing Choice Voucher Program 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 federal Fiscal Year (FY) 2003 
monthly on-going administrative fee amount paid to public housing 
agencies (PHAs) administering tenant-based assistance under the Housing 
Choice Voucher Program, and project-based assistance under the Project-
based Certificate Program, the Project-based Voucher Program and the 
Moderate Rehabilitation Programs (including Moderate Rehabilitation 
Single Room Occupancy (SRO)). The notice also describes other fees, in 
addition to the on-going administrative fees, that may be approved by 
HUD for PHA costs of program administration.

EFFECTIVE DATE: May 6, 2003.

FOR FURTHER INFORMATION CONTACT: Gerald J. Benoit, Director, Housing 
Voucher Management and Operations Division, Office of Housing Voucher 
Programs, Office of Public and Indian Housing, Department of Housing 
and Urban Development, Room 4210, 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. Applicability

    HUD pays administrative fees to a PHA that administers housing 
assistance programs under Section 8 of the United States Housing Act of 
1937 (42 U.S.C. 1437f) in accordance with the annual contributions 
contract between HUD and the PHA. This notice establishes FY 2003 on-
going administrative fees for PHAs administering the following 
programs: tenant-based assistance under the Housing Choice Voucher 
Program, and project-based assistance under the Project-based 
Certificate Program, the Project-based Voucher Program, and the 
Moderate Rehabilitation Program (including Moderate Rehabilitation 
Single Room Occupancy).
    The FY 2003 on-going administrative fee amounts in this notice are 
used to calculate fees earned by a PHA for unit months in federal FY 
2003; that is, for unit months from October 1, 2002 to September 30, 
2003. HUD will use the on-going fee amount in this notice for review 
and approval of year-end financial statements for PHA fiscal years 
ending on December 31, 2002, March 31, 2003, June 30, 2003, and 
September 30, 2003. (However, this notice only sets the on-going fee 
amount used to calculate the PHA's administrative fee for the portion 
of the PHA fiscal year that falls in federal FY 2003. On-going fees for 
unit months in federal FY 2002 are calculated pursuant to the fee 
notice for FY 2002 published in the Federal Register on April 15, 2002 
(67 FR 18402)).

II. Statutory Background

    In accordance with the HUD appropriations for FY 2003 (Pub. L. 108-
7, 117 Stat. 11, approved February 20, 2003) (as was the case in fiscal 
years 2000, 2001 and 2002), PHA administrative fees are determined in 
accordance with Section 202 of the HUD appropriation act for federal FY 
1997 (Pub. L. 104-204, 110 Stat. 2874, approved September 26, 1996), 
which established the requirements for calculating PHA on-going 
administrative fees in effect immediately before enactment of the 
Housing Quality and Work Responsibility Act of 1998. (Pub. L. 105-276, 
115, 2461, approved October 21, 1998). The ongoing fee amounts may be 
reduced based upon the provisions of the appropriation act for FY 2003.
    As in prior fiscal years, under the pre-FY 99 administrative fee 
requirements, the on-going administrative fees for the first 600 units, 
in a PHA's Housing Choice Voucher program is 7.5 percent of the base 
amount for the first 600 units, 7.0 percent of the base amount for each 
additional voucher above 600 units and 3.0 percent of the base amount 
for a PHA-owned unit. The base amount is adjusted annually.
    This notice specifies the on-going administrative fee during FY 
2003 for PHAs administering the Housing Choice Voucher Program or the 
Moderate Rehabilitation Programs (including the Moderate Rehabilitation 
Single Room Occupancy Program).

III. Reduction of Fee Payments--New FY 2003 Appropriation Requirements

    The FY 2003 appropriation act also establishes the following new 
requirements, contained in the appropriation for prior federal fiscal 
years:
    [sbull] Funds made available by the FY 2003 administrative fee 
appropriations may only be provided to a PHA if the PHA has reported to 
HUD the amounts remaining available as of January 31, 2003, in the 
PHA's administrative fee reserve account.
    [sbull] Administrative fee payments otherwise authorized shall be 
reduced by any amounts remaining in a PHA's administrative fee reserve 
accounts as of January 31, 2003, which exceed 105 percent of the amount 
of administrative fees paid to the PHA from funds made available in FY 
2002. This provision does not apply to PHA's with FY 2003 
administrative fees of $100,000 or less.
    At this time, information on the new FY 2003 requirements is 
provided for information only. HUD will provide separate guidance to 
PHAs on implementation of the new FY 2003 statutory fee reduction 
requirements. The new requirements do not affect the ongoing fee 
amounts established by this notice. However, the PHA's aggregate fee 
income for FY 2003 will be affected by any required reductions.

IV. On-Going Monthly Administrative Fee

    How on-going administrative fees are calculated. A PHA is paid an 
on-going administrative fee for each unit month for which a dwelling 
unit is covered by a housing assistance payments contract on the first 
day of the month. In each case, the on-going administrative fee is a 
specified percentage of a defined ``base amount.''
    (1) The Base Amount. The amount of the per unit on-going 
administrative fee is adjusted each year based on changes in wage data 
or other objectively measurable data, as determined by HUD, that 
reflect the costs of administering the program. At this time, this 
adjustment is implemented by adjusting the base amount (for the prior 
federal fiscal year) to reflect average local government wages as 
measured by the most recent Bureau of Labor Statistics data on local 
government wages (ES-202 series).
    (2) Percentage applied to adjusted base amount. Under the fee 
system, the following percentages are applied to the adjusted base 
amount for the prior federal fiscal year:
    (i) For all units except PHA-owned.
    (A) 600 unit threshold. 7.5 percent of the adjusted ``base amount'' 
for the first 600 units. This threshold is applied separately to 
determine the on-going fees earned:
    (1) for the PHA's Housing Choice Voucher Program including, tenant-

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based voucher program, project-based voucher program and project-based 
certificate program; and
    (2) for the PHA's moderate rehabilitation programs (including 
moderate rehabilitation Single Room Occupancy).
    (B) Units exceeding 600 unit threshold. 7.0 percent of the adjusted 
``base amount'' for each additional unit in the program above the 600-
unit threshold.
    (ii) for PHA-owned units. 3.0 percent of the adjusted ``base 
amount'' for each PHA-owned unit.

V. Other Administrative Fees

    HUD may approve administrative fees in addition to the on-going 
administrative fee. The types of additional fees that are currently 
permitted are described in PIH Notice 2002-7 (HA), issued March 31, 
2002.
    1. Hard-to-House Fee. HUD may pay a special fee to a PHA for costs 
incurred in assisting families who experience difficulty, as determined 
by HUD, in finding or leasing appropriate housing under the housing 
choice voucher program. Hard-to-house fees include the following:
    (a) Hard-to-House Fees for Large Families. The PHA will be paid $75 
every time a hard-to-house family is actually housed in a unit other 
than the family's pre-program unit. HUD pays the PHA a hard-to-house 
fee for the extra effort provided by a PHA in assisting families with 
three or more minors to enable them to find suitable housing.
    (b) Hard-to-House Fee for a family that includes a person with 
disabilities. The PHA will be paid $75 every time a family that 
includes a person with disabilities is actually housed in a unit other 
than the family's pre-program unit. HUD pays the PHA a hard-to-house 
fee for the extra effort provided by the PHA in assisting a family that 
includes a person with disabilities to enable them to find appropriate 
housing.
    2. Fee for Extraordinary Costs. HUD may pay a special one-time fee 
for extraordinary costs incurred by the PHA in the operation of the 
housing choice voucher program, as approved by the Assistant Secretary 
for Public and Indian Housing.
    3. Housing Conversion Actions. HUD provides housing choice voucher 
assistance to assist eligible residents that are affected by several 
different types of owners of HUD actions (collectively described as 
``Housing conversion actions''). When a PHA receives a special 
allocation of voucher funding from HUD for a Housing conversion action, 
the PHA will receive a fee. The amount of the fee is $250 per unit for 
the total number of occupied units covered by the Housing conversion 
actions--preservation prepayments; project-based opt-outs; HUD 
enforcement actions, or HUD property disposition.
    Other voucher conversion actions, such as public housing 
replacements or Section 8 moderate rehabilitation contract expirations, 
are not eligible for the Housing conversion fee.
    4. Preliminary Fees. A PHA may earn a preliminary fee of $500 per 
unit as reimbursement for preliminary expenses the PHA incurred in the 
first year the PHA administers the first increment of funding for 
assistance under the housing choice voucher program.
    5. Lead-Based Paint Fee for Initial Clearance Test. HUD pays a PHA 
$150 to conduct the initial lead-based paint hazard clearance test on 
paint stabilization efforts in a unit occupied by a family with a child 
under the age of six in connection with the PHA's housing quality 
standards inspections before and during assisted occupancy. Paint 
stabilization is required at 24 CFR part 35. The initial testing is 
performed on units that have deteriorated paint above the de minimis 
level specified in the lead-based paint regulations following repair of 
the deteriorated paint. See 24 CFR 35.1330(a)(3).
    6. Lead-Based Paint Risk Assessment Fee. The PHA must conduct a 
risk assessment of a unit in which a child under the age of six, with 
an environmental intervention blood-lead level (EIBLL), has lived at 
the time the child's blood was last sampled, unless an evaluation has 
already been conducted by the public health department. HUD pays a PHA 
$350 each time a risk assessment of a unit is conducted on behalf of a 
family with a child under the age of six with an EIBLL and where the 
family is assisted by the housing choice voucher program. The EIBLL 
must be identified by the local health department or other medical 
provider during the time the family resided in the unit.

VI. On-Going Administrative Fee Amounts

    A schedule of monthly per unit on-going administrative fee amounts 
for FY 2003 is attached to this Notice. The schedule shall be used to 
determine the amount of FY 2003 on-going administrative fees in PHA 
fiscal year-end financial statements.
    The schedule establishes the on-going administrative fee amounts 
for each fair market rent (FMR) area. If a PHA's jurisdiction includes 
more than one FMR area (e.g., for a PHA with state-wide jurisdiction), 
the PHA's earned fees for administration of dwelling units leased in 
each FMR area are calculated using the on-going administrative fee 
amounts on the schedule for the FMR area where the units are actually 
located.
    The schedules show the monthly on-going administrative fee amounts 
a PHA earns for each unit under a housing assistance payment contract 
on the first day of the applicable month during federal FY 2003. On-
going administrative fees earned for the portion of a PHA's fiscal year 
that falls in the preceding FY (e.g., the first 3 quarters of a fiscal 
year ending December 31, 2001) shall be determined in accordance with 
the notice published in the Federal Register on April 15, 2002 (67 FR 
18402).
    The schedule is arranged in three columns (designated as Columns A, 
B, and C). As described in more detail below, Column A establishes the 
on-going administrative fee amount for the first 600 units (except PHA-
owned units) in the PHA's voucher program or moderate rehabilitation 
program, Column B establishes the on-going administrative fee amount 
for additional units (except PHA-owned units) in the PHA's voucher or 
moderate rehabilitation program, and Column C establishes the on-going 
administrative fee amount for PHA-owned units.
    Column A: On-going administrative fees for 600 units or less. The 
amount in Column A is the monthly per unit fee amount used to compute 
the FY 2003 on-going administrative fees earned by the PHA:
    1. For the first 600 units up to 7,200 unit months assisted in the 
PHA's Housing Choice Voucher Program, including project-based voucher 
and project-based certificate units administered by the PHA.
    2. For the first 600 units up to 7,200 unit months assisted in the 
PHA's Moderate Rehabilitation Program including the Moderate 
Rehabilitation Single Room Occupancy Program.

How To Calculate the PHA's On-Going Administrative Fees Earned

    The monthly on-going administrative fee is computed by multiplying 
the number of unit months that were under a housing assistance payments 
contract during FY 2003 by the monthly per unit on-going fee amount in 
column A (up to a maximum of 7,200 unit months during FY 2003). The 
maximum number of unit months for which the column A fee amount may be 
used depends on the PHA fiscal year-end.

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    Depending on the PHA's fiscal year-end, a PHA must use the 
applicable maximum number of Column A unit months to calculate its 
total on-going administrative fee income for FY 2003:

------------------------------------------------------------------------
                                               Maximum number of unit
            PHA fiscal year end                        months
------------------------------------------------------------------------
December 31, 2002.........................  Up to 1,800 unit months.
March 31, 2003............................  Up to 3,600 unit months.
June 30, 2003.............................  Up to 5,400 unit months.
September 30, 2003........................  Up to 7,200 unit months.
------------------------------------------------------------------------

    Column B: On-going administrative fees for unit months in excess of 
the Column A unit months. The amount in Column B is the monthly per 
unit fee amount used to compute the FY 2003 on-going administrative 
fees earned by the PHA for any unit months in excess of Column A unit 
months (not including unit months for any PHA-owned units). The PHA's 
total Column B fee income is computed by multiplying the applicable 
Column B amount times the number of excess unit months. Otherwise 
stated, the Column B amount is used to calculate the PHA's earned 
administrative fees for total FY 2003 unit months minus (1) the number 
of unit months for PHA-owned units, and (2) the number of Column A unit 
months.
    Column C: On-going administrative fees for PHA-owned units. The 
administrative fee earned for administration of assistance in FY 2003 
to families residing in PHA-owned dwelling units is calculated by 
multiplying the monthly per unit fee amount in Column C times the 
number of unit months leased in PHA-owned units. Column A and Column B 
fee amounts are not used for PHA-owned units.
    On-going administrative fees for units under portability. The on-
going administrative fee amounts used for reimbursing receiving PHAs 
for all portable units will be determined by using the monthly per unit 
on-going administrative fee amounts in Column B for the initial PHA. 
The receiving PHA administering the portable housing choice voucher 
will receive 80 percent of the Column B amount and the initial PHA will 
receive 20 percent of the Column B amount, unless other amounts are 
otherwise agreed upon by both PHAs.

VII. Adjustment of Administrative Fees

    The fiscal year 2003 appropriations act includes new fee 
requirements:
    1. Prohibition of payment of administrative fees until PHAs report 
the balance of the administrative fee reserve account as of January 31, 
2003, to HUD Headquarters.
    2. Reduction of the annual administrative fee calculated for FY 
2003 by the amount that exceeds 105 percent of the amount of fees that 
were made available to the PHA in FY 2002. This provision does not 
apply to PHA's whose FY 2003 administrative fees are $100,000 or less.

    For the purpose of determining funding levels, HUD will require 
updates of administrative fee and other costs data through an interim 
data collection tool. The office of the Assistant Secretary for Public 
and Indian Housing will issue an administrative notice to provide 
further guidance to PHAs on the new statutory fee reduction 
requirements.

VIII. 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 13132, Federalism

    Executive Order 13132 (captioned ``Federalism'') prohibits, to the 
extent practicable and permitted by law, an agency from promulgating a 
regulation that has federalism implications and either imposes 
substantial direct compliance costs on state and local governments and 
is not required by statute, or preempts state law, unless the relevant 
requirements of section 6 of the Executive Order are met. None of the 
provisions in this notice will have federalism implications and they 
will not impose substantial direct compliance costs on state and local 
governments or preempt state law within the meaning of the Executive 
Order. As a result, the notice is not subject to review under the 
Order.

Catalog of Federal Domestic Assistance Number

    The Catalog of Federal Domestic Assistance Number for this program 
is 14.850.

    Dated: April 24, 2003.
Michael Liu,
Assistant Secretary for Public and Indian Housing.
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[FR Doc. 03-11055 Filed 5-5-03; 8:45 am]
BILLING CODE 4210-33-C