Tuesday, May 6, 2003
Part III
Department of Housing and Urban Development Notice of Annual Factors for Determining Public Housing Agency Ongoing Administrative Fees for the Housing Choice Voucher Program and Moderate Rehabilitation Programs; Notice
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Federal Register / Vol. 68, No. 87 / Tuesday, May 6, 2003 / Notices
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. 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 speechimpaired 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
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(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 preFY 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
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appropriation for prior federal fiscal years: • 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. • 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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Federal Register / Vol. 68, No. 87 / Tuesday, May 6, 2003 / Notices 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-tohouse 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
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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.
FMR area (e.g., for a PHA with statewide 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 ongoing 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 ongoing 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.
VI. On-Going Administrative Fee Amounts A schedule of monthly per unit ongoing 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 yearend 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
How To Calculate the PHA’s On-Going Administrative Fees Earned
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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 yearend, 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: PHA fiscal year end December 31, 2002. March 31, 2003 June 30, 2003 .. September 30, 2003.
Maximum number of unit months Up to 1,800 unit months. Up to 3,600 unit months. Up to 5,400 unit months. 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
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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
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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. BILLING CODE 4210–33–P
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[FR Doc. 03–11055 Filed 5–5–03; 8:45 am]
