[Federal Register Volume 68, Number 236 (Tuesday, December 9, 2003)]
[Notices]
[Pages 68648-68649]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 03-30507]


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DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

[Docket No. FR-4874-N-01]


Public Housing Operating Fund; Notice of Availability of 
Information and Request for Comments

AGENCY: Office of the Assistant Secretary for Public and Indian 
Housing, HUD.

ACTION: Notice.

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SUMMARY: Through this notice, HUD invites public housing agencies 
(PHAs), public housing residents, and other interested members of the 
public to HUD's Web site that provides information about the Public 
Housing Operating Fund Formula. The Operating Fund Formula determines 
the allocation of operating subsidies to PHAs. The Operating Fund 
Formula currently in

[[Page 68649]]

effect was established by a March 29, 2001, interim rule, which 
followed a July 10, 2000, proposed rule developed through negotiated 
rulemaking procedures. The Web site continues the discussion of 
possible changes to the Operating Fund Formula, initiated during the 
development of and continuing through the recent release of a study of 
the cost of operating public housing conducted by the Harvard 
University Graduate School of Design. HUD's Web site presents issues 
for consideration and solicits comments from the public on the 
substance and form of a revised Operating Fund Formula.

DATES: Comment Due Date: Comments on the information posted on HUD's 
Web site will be accepted until January 30, 2004. HUD will update and 
revise this information on a periodic basis to reflect the availability 
of data and the public comments received to date. Accordingly, 
interested parties should visit HUD's Web site periodically during the 
comment period, and are invited to submit new or revised comments based 
on the updated information.

ADDRESSES: Interested persons are invited to submit comments regarding 
the information posted on HUD's Web site, http://www.hud.gov/offices/pih/divisions/ffmd/formulacomments.cfm. Comments must be submitted to: 
[email protected] or Chris Kubacki, Public Housing 
Financial Management Division, Office of Public and Indian Housing--
Real Estate Assessment Center, Department of Housing and Urban 
Development, 1250 Maryland Ave., SW., Suite 800, Washington, DC 20024-
5000.

FOR FURTHER INFORMATION CONTACT: Chris Kubacki, Public Housing 
Financial Management Division, Office of Public and Indian Housing--
Real Estate Assessment Center, Department of Housing and Urban 
Development, 1250 Maryland Ave., SW., Suite 800, Washington, DC 20024-
5000; telephone (202) 708-4932 (this is not a toll-free number). 
Persons with hearing or speech impairments may access this number via 
TTY by calling the toll-free Federal Information Relay Service at 1-
800-877-8339.

SUPPLEMENTARY INFORMATION:

I. Background

    Section 9 of the United States Housing Act of 1937 (42 U.S.C. 
1437g) establishes an Operating Fund for the purpose of making 
assistance available to PHAs for the operation and management of public 
housing. Section 9 also requires that the amount of the assistance to 
be made available to a PHA from that fund be determined using a formula 
developed through negotiated rulemaking procedures as provided in 
subchapter III of chapter 5 of title 5, United States Code, commonly 
referred to as the Negotiated Rulemaking Act of 1990.
    Negotiated rulemaking for an Operating Fund Formula was initiated 
in March 1999, and consisted of 25 members representing PHAs, tenant 
organizations, community-based organizations, and the three national 
organizations representing PHAs--The Public Housing Authorities 
Directors Association (PHADA), the Council of Large Public Housing 
Authorities (CLPHA), and the National Association of Housing 
Redevelopment Officials (NAHRO). The negotiated rulemaking committee 
concluded with a proposed rule, published on July 10, 2000 (65 FR 
42488), which was followed by an interim rule published on March 29, 
2001 (66 FR 17276). The March 29, 2001, interim rule established the 
Operating Fund Formula that is currently in effect.
    In accordance with Congressional direction, HUD contracted with the 
Harvard University Graduate School of Design (Harvard GSD) to conduct a 
study on the costs incurred in operating well-run public housing. The 
Harvard GSD performed extensive research on the question of what the 
expense level of managing public housing should be. HUD invited the 
members of the negotiated rulemaking committee to be active 
participants in Harvard GSD's research for and development of the Cost 
Study. The Harvard GSD also conducted several public meetings to allow 
for an exchange of views with the public housing industry, beyond those 
industry members who were part of the Operating Fund Formula negotiated 
rulemaking committee. The Cost Study was completed and officially 
released in July 2003, and the release of the Cost Study has prompted 
further discussion about changes to, and the future of, the Operating 
Fund Formula. A copy of the Cost Study and related documents may be 
downloaded from the Harvard GSD Web site (http://www.gsd.harvard.edu/research/research_centers/phocs/index.html).

II. This Notice

    HUD believes that a reinitiation of the dialogue with the industry 
and the public on changes to the Operating Fund Formula that commenced 
with the development of the Cost Study and continued through its 
release, would be beneficial to the Department and the industry in 
focusing on changes that should be considered to the Operating Fund 
Formula. HUD is therefore making available on its Web site information 
and issues related to possible changes to the Operating Fund Formula 
(see HUD Web site at http://www.hud.gov/offices/pih/divisions/ffmd/formulacomments.cfm).
    HUD is specifically seeking comments on the information posted on 
its Web site. Interested parties may submit comments on this 
information either electronically or by mail to the addresses listed in 
the ADDRESSES section above. Comments on the information posted on 
HUD's Web site will be accepted until January 30, 2004.
    It is HUD's goal in posting this information to initiate an ongoing 
dialogue with interested members of the public. Accordingly, HUD will 
update and revise the information posted on its Web site on a periodic 
basis to reflect the availability of data and the public comments 
received to date. Interested parties should visit HUD's Web site 
periodically during the comment period, and are invited to submit new 
or revised comments based on the updated information. As part of this 
ongoing dialogue with the public, public housing residents, PHAs, and 
other interested parties on issues concerning possible changes to the 
Operating Fund Formula, HUD may also sponsor one or more meetings to 
further discuss changes to the Operating Fund Formula.

    Dated: December 2, 2003.
Michael M. Liu,
Assistant Secretary for Public and Indian Housing.
[FR Doc. 03-30507 Filed 12-8-03; 8:45 am]
BILLING CODE 4210-33-P