Revisions to the Public Housing Operating Fund Program; Correction to Formula Implementation Date, 61366-61367 [05-21268]
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61366
Federal Register / Vol. 70, No. 204 / Monday, October 24, 2005 / Rules and Regulations
PART 416—SUPPLEMENTAL
SECURITY INCOME FOR THE AGED,
BLIND, AND DISABLED
Subpart B—[Amended]
4. The authority citation for subpart B
of part 416 continues to read as follows:
I
Authority: Secs. 702(a)(5), 1110(b), 1602,
1611, 1614, 1619(a), 1631, and 1634 of the
Social Security Act (42 U.S.C. 902(a)(5),
1310(b), 1381a, 1382, 1382c, 1382h(a), 1383,
and 1383c); secs. 211 and 212, Pub. L. 93–
66, 87 Stat. 154 and 155 (42 U.S.C. 1382
note); sec. 502(a), Pub. L. 94–241, 90 Stat.
268 (48 U.S.C. 1681 note); sec. 2, Pub. L. 99–
643, 100 Stat. 3574 (42 U.S.C. 1382h note).
5. Amend § 416.216 by revising
paragraph (a) to read as follows:
I
§ 416.216 You are a child of armed forces
personnel living overseas.
(a) General Rule. For purposes of this
part, overseas means any location
outside the United States as defined in
§ 416.215; i.e., the 50 States, the District
of Columbia and the Northern Mariana
Islands. You may be eligible for SSI
benefits if you live overseas and if—
(1) You are a child as described in
§ 416.1856;
(2) You are a citizen of the United
States; and
(3) You are living with a parent as
described in § 416.1881 who is a
member of the armed forces of the
United States assigned to permanent
duty ashore overseas.
*
*
*
*
*
formula. In converting the rule from a
proposed to final rule, HUD
unintentionally failed to revise certain
dates to reflect the updated schedule for
implementation of the revised formula.
Accordingly, the September 19, 2005,
final rule inadvertently denies PHAs the
one-year transition period. This
document corrects the September 19,
2005, final rule to provide that the
revised allocation formula will be
implemented for calendar year 2007,
and adjusts the related dates specified
in the rule to reflect the corrected
implementation date.
EFFECTIVE DATE: The final rule is
effective on November 18, 2005.
FOR FURTHER INFORMATION CONTACT:
Elizabeth Hanson, Public Housing
Financial Management Division, Office
of Public and Indian Housing,
Department of Housing and Urban
Development, 550 12th Street SW.,
Suite 100, Washington, DC 20410;
telephone (202) 475–7949 (this
telephone number is not toll-free).
Individuals with speech or hearing
impairments may access this number
through TTY by calling the toll-free
Federal Information Relay Service at 1–
800–877–8339.
SUPPLEMENTARY INFORMATION:
I. Background
24 CFR Part 990
On September 19, 2005, (70 FR
54983), HUD published a final rule
amending the regulations of the Public
Housing Operating Fund Program at 24
CFR part 990, to provide a new formula
for distributing operating subsidy to
public housing agencies (PHAs) and
establish requirements for PHAs to
convert to asset management. More
detailed information about this rule can
be found in the preamble to the
September 19, 2005, final rule.
[Docket No. FR–4874–C–09]
II. This Document
RIN 2577–AC51
The September 19, 2005, final rule
establishes several requirements and
determinations connected to the
calendar year in which the distribution
of operating subsidies will be made.
Some of the dates in the final rule were
carried over from the proposed rule and
assumed both an initial implementation
of the revised formula in FY2006, and
a one-year transition period prior to
implementation of the new formula.
Given the timing of publication and
the effective date of the final rule, initial
implementation of the revised formula
must be deferred to calendar year 2007
in order to provide PHAs with the
necessary one year transition period.
However, in converting this rule from a
proposed rule to a final rule, HUD
inadvertently failed to revise certain
[FR Doc. 05–21117 Filed 10–21–05; 8:45 am]
BILLING CODE 4191–02–P
DEPARTMENT OF HOUSING AND
URBAN DEVELOPMENT
Revisions to the Public Housing
Operating Fund Program; Correction
to Formula Implementation Date
Office of the Assistant
Secretary for Public and Indian
Housing, HUD.
ACTION: Final rule; correction.
AGENCY:
SUMMARY: This document corrects
HUD’s final rule published on
September 19, 2005, that implements
revisions to the public housing
Operating Fund Program. The final rule
includes dates from the proposed rule
that assumed both an initial
implementation of the revised formula
in fiscal year (FY) 2006 and a one-year
period for PHAs to transition to the new
VerDate Aug<31>2005
13:23 Oct 21, 2005
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PO 00000
Frm 00018
Fmt 4700
Sfmt 4700
dates to reflect the updated schedule for
implementation of the new formula, and
unintentionally denied PHAs the oneyear transition period.
This document corrects certain
provisions in the September 19, 2005,
final rule to appropriately reflect initial
implementation of the revised Operating
Fund formula in calendar year 2007.
The corrections made by this document
are necessary to assist PHAs in proper
budgetary planning and to bring their
policies and procedures into
compliance with the new formula
requirements. The effective date of the
rule remains November 18, 2005, and all
other dates contained in the final rule
that do not affect the new formula
allocation of operating subsidies are
unchanged.
The following section of this
document describes the most significant
corrections being made to the
September 19, 2005, final rule.
III. Corrections to the September 19,
2005, Final Rule
Revised subpart F of 24 CFR part 990
establishes procedures to assist PHAs in
transitioning to the new funding levels
under the new Operating Fund formula.
As provided in § 990.225 of the final
rule, the determination of the amount
and period of the transition funding will
be based on the difference in subsidy
levels between the revised formula and
the formula in effect prior to
implementation of the final rule.
Differences in subsidy levels will be
calculated using FY 2004 data.
1. Transition Funding. Under
§§ 990.230 and 990.235 of the final rule,
PHAs that experience a decrease or
increase in operating subsidy will have
that decrease phased-in over a specified
number of years following the effective
date of the final rule (November 18,
2005). The phase-in period is five years
for subsidy reductions and two years for
increases in operating subsidies. By
specifying the date of November 18,
2005, the final rule incorrectly connects
the first year of the phased-in reduction
to initial formula implementation in FY
2006. This document corrects
§§ 990.230 and 990.235 by removing
references to specific dates.
2. Discontinuation of subsidy
reduction as a result of conversion to
asset management (‘‘stop-loss’’
provision). As noted above, the final
rule provides that phased-in reductions
in operating subsidy will be
discontinued if the PHA can
demonstrate successful conversion to
the asset management requirements
contained in revised subpart H of the
part 990 regulations. HUD will
discontinue the reduction in accordance
E:\FR\FM\24OCR1.SGM
24OCR1
Federal Register / Vol. 70, No. 204 / Monday, October 24, 2005 / Rules and Regulations
with the corrected ‘‘stop-loss’’ schedule
set forth in § 990.230 of the final rule
that reflects initial formula
implementation in calendar year 2007.
For example, the first demonstration
date in the corrected schedule is
October 1, 2006, as opposed to the
October 1, 2005, date incorrectly
provided in the September 19, 2005,
final rule.
I Accordingly, FR Doc. 05–18624,
Revisions to the Public Housing
Operating Fund Program; Final Rule,
(FR–4874–F–08), published in the
Federal Register on September 19, 2005
(70 FR 54984), is corrected as follows:
PART 990—[AMENDED]
1. On page 55003, in the second
column, correct § 990.195(c) to read as
follows:
I
§ 990.195
Calculation of formula income.
*
*
*
*
*
(c) Frozen at 2004 level. After a PHA’s
formula income is calculated as
described in paragraph (a) of this
section, it will not be recalculated or
inflated for fiscal years 2007 through
2009, unless a PHA can show a severe
local economic hardship that is
impacting the PHA’s ability to maintain
some semblance of its formula income
(see subpart G of this part—Appeals). A
PHA’s formula income may be
recalculated if the PHA appeals to HUD
for an adjustment in its formula.
*
*
*
*
*
I 2. In § 990.225, on page 55004, in the
second column, correct the first
sentence to read as follows:
§ 990.225
Transition determination.
The determination of the amount and
period of the transition funding shall be
based on the difference in subsidy levels
between the formula set forth in this
part and the formula in effect prior to
implementation of the formula set forth
in this part. * * *
*
*
*
*
*
I 3. In § 990.230, on page 55004, in the
third column, correct paragraphs (a), (b),
(c), and (e) to read as follows:
§ 990.230 PHAs that will experience a
subsidy reduction.
(a) For PHAs that will experience a
reduction in their operating subsidy, as
determined in § 990.225, such
reductions will have a limit of:
(1) 24 percent of the difference
between the two funding levels in the
first year following implementation of
the formula contained in this part;
(2) 43 percent of the difference
between the two funding levels in the
second year following implementation
of the formula contained in this part;
Funding period
October 1, 2006 .................................................
Year
Year
Year
Year
Year
1
2
3
4
5
October
October
October
October
October
*
*
(3) 62 percent of the difference
between the two levels in the third year
following implementation of the
formula contained in this part; and
(4) 81 percent of the difference
between the two levels in the fourth
year following implementation of the
formula contained in this part.
(b) The full amount of the reduction
in the operating subsidy level shall be
realized in the fifth year following
implementation of the formula
contained in this part.
(c) For example, a PHA has a subsidy
reduction from $1 million under the
formula in effect prior to
implementation of the formula
contained in this part to $900,000 under
the formula contained in this part using
FY 2004 data. The difference would be
calculated at $100,000 ($1
million¥$900,000 = $100,000). In the
first year, the subsidy reduction would
be limited to $24,000 (24 percent of the
difference). Thus, the PHA will receive
an operating subsidy amount of this rule
plus a transition-funding amount of
$76,000 (the $100,000 difference
between the two subsidy amounts
minus the $24,000 reduction limit).
*
*
*
*
*
(e) The schedule of reductions for a
PHA that will experience a reduction in
subsidy is reflected in the table below.
Demonstration dated by
Prior to year 1 .....................................................
.................................................................
.................................................................
.................................................................
.................................................................
.................................................................
*
*
*
4. In § 990.235, on page 55005, in the
first and second columns, correct
paragraphs (a), (b), and (c) to read as
follows:
I
§ 990.235 PHAs that will experience a
subsidy increase.
(a) For PHAs that will experience a
gain in their operating subsidy, as
determined in § 990.225, such increases
will have a limit of 50 percent of the
difference between the two funding
levels in the first year following
implementation of the formula
contained in this part.
(b) The full amount of the increase in
the operating subsidy level shall be
realized in the second year following
implementation of the formula
contained in this part.
VerDate Aug<31>2005
13:23 Oct 21, 2005
Jkt 208001
1,
1,
1,
1,
1,
2007
2008
2009
2010
2011
.................................................
.................................................
.................................................
.................................................
.................................................
(c) For example, a PHA’s subsidy
increased from $900,000 under the
formula in effect prior to
implementation of the formula
contained in this part to $1 million
under the formula contained in this part
using FY 2004 data. The difference
would be calculated at $100,000 ($1
million¥$900,000 = $100,000). In the
first year, the subsidy increase would be
limited to $50,000 (50 percent of the
difference). Thus, in this example the
PHA will receive the operating subsidy
amount of this rule minus a transitionfunding amount of $50,000 (the
$100,000 difference between the two
subsidy amounts minus the $50,000
transition amount).
*
*
*
*
*
PO 00000
Frm 00019
Fmt 4700
Sfmt 4700
61367
Reduction limited to
5 percent of the difference between
the two funding levels.
24 percent of the difference.
43 percent of the difference.
62 percent of the difference.
81 percent of the difference.
Full reduction reached.
Dated: October 19, 2005.
Paula O. Blunt,
General Deputy Assistant Secretary for Public
and Indian Housing.
[FR Doc. 05–21268 Filed 10–21–05; 8:45 am]
BILLING CODE 4210–33–P
E:\FR\FM\24OCR1.SGM
24OCR1
]]>Agencies
[Federal Register Volume 70, Number 204 (Monday, October 24, 2005)]
[Rules and Regulations]
[Pages 61366-61367]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 05-21268]
=======================================================================
-----------------------------------------------------------------------
DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
24 CFR Part 990
[Docket No. FR-4874-C-09]
RIN 2577-AC51
Revisions to the Public Housing Operating Fund Program;
Correction to Formula Implementation Date
AGENCY: Office of the Assistant Secretary for Public and Indian
Housing, HUD.
ACTION: Final rule; correction.
-----------------------------------------------------------------------
SUMMARY: This document corrects HUD's final rule published on September
19, 2005, that implements revisions to the public housing Operating
Fund Program. The final rule includes dates from the proposed rule that
assumed both an initial implementation of the revised formula in fiscal
year (FY) 2006 and a one-year period for PHAs to transition to the new
formula. In converting the rule from a proposed to final rule, HUD
unintentionally failed to revise certain dates to reflect the updated
schedule for implementation of the revised formula. Accordingly, the
September 19, 2005, final rule inadvertently denies PHAs the one-year
transition period. This document corrects the September 19, 2005, final
rule to provide that the revised allocation formula will be implemented
for calendar year 2007, and adjusts the related dates specified in the
rule to reflect the corrected implementation date.
EFFECTIVE DATE: The final rule is effective on November 18, 2005.
FOR FURTHER INFORMATION CONTACT: Elizabeth Hanson, Public Housing
Financial Management Division, Office of Public and Indian Housing,
Department of Housing and Urban Development, 550 12th Street SW., Suite
100, Washington, DC 20410; telephone (202) 475-7949 (this telephone
number is not toll-free). Individuals with speech or hearing
impairments may access this number through TTY by calling the toll-free
Federal Information Relay Service at 1-800-877-8339.
SUPPLEMENTARY INFORMATION:
I. Background
On September 19, 2005, (70 FR 54983), HUD published a final rule
amending the regulations of the Public Housing Operating Fund Program
at 24 CFR part 990, to provide a new formula for distributing operating
subsidy to public housing agencies (PHAs) and establish requirements
for PHAs to convert to asset management. More detailed information
about this rule can be found in the preamble to the September 19, 2005,
final rule.
II. This Document
The September 19, 2005, final rule establishes several requirements
and determinations connected to the calendar year in which the
distribution of operating subsidies will be made. Some of the dates in
the final rule were carried over from the proposed rule and assumed
both an initial implementation of the revised formula in FY2006, and a
one-year transition period prior to implementation of the new formula.
Given the timing of publication and the effective date of the final
rule, initial implementation of the revised formula must be deferred to
calendar year 2007 in order to provide PHAs with the necessary one year
transition period. However, in converting this rule from a proposed
rule to a final rule, HUD inadvertently failed to revise certain dates
to reflect the updated schedule for implementation of the new formula,
and unintentionally denied PHAs the one-year transition period.
This document corrects certain provisions in the September 19,
2005, final rule to appropriately reflect initial implementation of the
revised Operating Fund formula in calendar year 2007. The corrections
made by this document are necessary to assist PHAs in proper budgetary
planning and to bring their policies and procedures into compliance
with the new formula requirements. The effective date of the rule
remains November 18, 2005, and all other dates contained in the final
rule that do not affect the new formula allocation of operating
subsidies are unchanged.
The following section of this document describes the most
significant corrections being made to the September 19, 2005, final
rule.
III. Corrections to the September 19, 2005, Final Rule
Revised subpart F of 24 CFR part 990 establishes procedures to
assist PHAs in transitioning to the new funding levels under the new
Operating Fund formula. As provided in Sec. 990.225 of the final rule,
the determination of the amount and period of the transition funding
will be based on the difference in subsidy levels between the revised
formula and the formula in effect prior to implementation of the final
rule. Differences in subsidy levels will be calculated using FY 2004
data.
1. Transition Funding. Under Sec. Sec. 990.230 and 990.235 of the
final rule, PHAs that experience a decrease or increase in operating
subsidy will have that decrease phased-in over a specified number of
years following the effective date of the final rule (November 18,
2005). The phase-in period is five years for subsidy reductions and two
years for increases in operating subsidies. By specifying the date of
November 18, 2005, the final rule incorrectly connects the first year
of the phased-in reduction to initial formula implementation in FY
2006. This document corrects Sec. Sec. 990.230 and 990.235 by removing
references to specific dates.
2. Discontinuation of subsidy reduction as a result of conversion
to asset management (``stop-loss'' provision). As noted above, the
final rule provides that phased-in reductions in operating subsidy will
be discontinued if the PHA can demonstrate successful conversion to the
asset management requirements contained in revised subpart H of the
part 990 regulations. HUD will discontinue the reduction in accordance
[[Page 61367]]
with the corrected ``stop-loss'' schedule set forth in Sec. 990.230 of
the final rule that reflects initial formula implementation in calendar
year 2007. For example, the first demonstration date in the corrected
schedule is October 1, 2006, as opposed to the October 1, 2005, date
incorrectly provided in the September 19, 2005, final rule.
0
Accordingly, FR Doc. 05-18624, Revisions to the Public Housing
Operating Fund Program; Final Rule, (FR-4874-F-08), published in the
Federal Register on September 19, 2005 (70 FR 54984), is corrected as
follows:
PART 990--[AMENDED]
0
1. On page 55003, in the second column, correct Sec. 990.195(c) to
read as follows:
Sec. 990.195 Calculation of formula income.
* * * * *
(c) Frozen at 2004 level. After a PHA's formula income is
calculated as described in paragraph (a) of this section, it will not
be recalculated or inflated for fiscal years 2007 through 2009, unless
a PHA can show a severe local economic hardship that is impacting the
PHA's ability to maintain some semblance of its formula income (see
subpart G of this part--Appeals). A PHA's formula income may be
recalculated if the PHA appeals to HUD for an adjustment in its
formula.
* * * * *
0
2. In Sec. 990.225, on page 55004, in the second column, correct the
first sentence to read as follows:
Sec. 990.225 Transition determination.
The determination of the amount and period of the transition
funding shall be based on the difference in subsidy levels between the
formula set forth in this part and the formula in effect prior to
implementation of the formula set forth in this part. * * *
* * * * *
0
3. In Sec. 990.230, on page 55004, in the third column, correct
paragraphs (a), (b), (c), and (e) to read as follows:
Sec. 990.230 PHAs that will experience a subsidy reduction.
(a) For PHAs that will experience a reduction in their operating
subsidy, as determined in Sec. 990.225, such reductions will have a
limit of:
(1) 24 percent of the difference between the two funding levels in
the first year following implementation of the formula contained in
this part;
(2) 43 percent of the difference between the two funding levels in
the second year following implementation of the formula contained in
this part;
(3) 62 percent of the difference between the two levels in the
third year following implementation of the formula contained in this
part; and
(4) 81 percent of the difference between the two levels in the
fourth year following implementation of the formula contained in this
part.
(b) The full amount of the reduction in the operating subsidy level
shall be realized in the fifth year following implementation of the
formula contained in this part.
(c) For example, a PHA has a subsidy reduction from $1 million
under the formula in effect prior to implementation of the formula
contained in this part to $900,000 under the formula contained in this
part using FY 2004 data. The difference would be calculated at $100,000
($1 million-$900,000 = $100,000). In the first year, the subsidy
reduction would be limited to $24,000 (24 percent of the difference).
Thus, the PHA will receive an operating subsidy amount of this rule
plus a transition-funding amount of $76,000 (the $100,000 difference
between the two subsidy amounts minus the $24,000 reduction limit).
* * * * *
(e) The schedule of reductions for a PHA that will experience a
reduction in subsidy is reflected in the table below.
----------------------------------------------------------------------------------------------------------------
Demonstration dated
Funding period by Reduction limited to
----------------------------------------------------------------------------------------------------------------
Prior to year 1................. October 1, 2006.... 5 percent of the difference between
the two funding levels.
Year 1.......................... October 1, 2007.... 24 percent of the difference.
Year 2.......................... October 1, 2008.... 43 percent of the difference.
Year 3.......................... October 1, 2009.... 62 percent of the difference.
Year 4.......................... October 1, 2010.... 81 percent of the difference.
Year 5.......................... October 1, 2011.... Full reduction reached.
----------------------------------------------------------------------------------------------------------------
* * * * *
0
4. In Sec. 990.235, on page 55005, in the first and second columns,
correct paragraphs (a), (b), and (c) to read as follows:
Sec. 990.235 PHAs that will experience a subsidy increase.
(a) For PHAs that will experience a gain in their operating
subsidy, as determined in Sec. 990.225, such increases will have a
limit of 50 percent of the difference between the two funding levels in
the first year following implementation of the formula contained in
this part.
(b) The full amount of the increase in the operating subsidy level
shall be realized in the second year following implementation of the
formula contained in this part.
(c) For example, a PHA's subsidy increased from $900,000 under the
formula in effect prior to implementation of the formula contained in
this part to $1 million under the formula contained in this part using
FY 2004 data. The difference would be calculated at $100,000 ($1
million-$900,000 = $100,000). In the first year, the subsidy increase
would be limited to $50,000 (50 percent of the difference). Thus, in
this example the PHA will receive the operating subsidy amount of this
rule minus a transition-funding amount of $50,000 (the $100,000
difference between the two subsidy amounts minus the $50,000 transition
amount).
* * * * *
Dated: October 19, 2005.
Paula O. Blunt,
General Deputy Assistant Secretary for Public and Indian Housing.
[FR Doc. 05-21268 Filed 10-21-05; 8:45 am]
BILLING CODE 4210-33-P
