Department of Housing and Urban Development

Public and Indian Housing

Special Attention of: Notice PIH 98-13 (HA)

Section 8 Public Housing Agencies Issued: February 20, 1998

and Indian Housing Authorities; Expires: February 28, 1999

Public Housing Office Directors;

Administrators, Offices

of Native American Programs Cross References:

Form HUD-50058 Instruction

Booklet, October 1997

Subject: Form HUD-50058 - Special Instructions for the

Section 8 Certificate Over-FMR Tenancy Option (OFTO)

1\. Purpose. This notice provides the over-FMR tenancy rent

calculation formula and special instructions for completing Form

HUD-50058, Family Report, for Section 8 certificate families who

choose an over-FMR tenancy. An HA may approve over-FMR tenancies

for up to 10 percent of its incremental certificate units under

new provisions in the third part of the Section 8 tenant-based

conforming rule (24 CFR 982.505 and 982.506). The third part of

the conforming rule is expected to be published in March 1998,

and will take effect 30 days after publication.

2\. Applicability. This notice applies only to the reporting of

Form HUD-50058 data for a family who is assisted in an over-FMR

tenancy in the rental certificate program. However, this notice

does NOT apply to reporting for a manufactured home owner renting

the space in an over-FMR tenancy; for those families, the HA

should fill section 14 of Form HUD-50058.

3\. Effective Date. The instructions in this notice will take

effect on the published effective date of the third part of the

Section 8 tenant-based conforming rule which implements the over-

FMR tenancy option (OFTO).

4\. Background. In October 1997, HUD issued a revised Form

HUD-50058 and instructions and in November 1997, HUD issued new

Family Reporting Software (FRS) 2.0 to support the revised form.

At the time of issuance, HUD had not yet published the new

Section 8 tenant-based program regulations that authorize

implementation of OFTO. Consequently, the October 1997 Form

HUD-50058 and FRS 2.0 do NOT include the rent calculation formula for

an over-FMR tenancy in the rental certificate program. This

notice provides the OFTO rent calculation formula and

instructions for reporting over-FMR tenancy information on the

Form HUD-50058.

5\. Filling the Form HUD-50058 for an OFTO Family. The HA should

fill the Form HUD-50058 as usual for a certificate family until

the HA reaches Section 11, Section 8 Certificates. In

Section 11, fill lines 11a (Number of bedrooms on certificate)

through 11i (Owner TIN/SSN) as usual. On line 11g, be sure to

mark Over-FMR Tenancy Option (OFTO). Fill the remaining

Section 11 according to the instructions in this notice.

Attached is the OFTO rent calculation formula to be used for

certificate families in over-FMR tenancies. (The formula

includes the calculation to be used if a mixed family under the

noncitizen rule is assisted under OFTO.) Since the Form

HUD-50058 and the flat file layout in the Technical Reference

Guide do NOT include the OFTO formula, it is necessary to report

certain information from the attached OFTO formula in established

fields on the Form HUD-50058 as follows:

OFTO Formula Item: Report on Form HUD-50058:

a, FMR or HUD-approved \<\<\>\>

Line 11j (FMR or exception rent)

exception rent \<\<\>\>

Field number 18 of certificate

record format

d, Utility Allowance \<\<\>\>

Line 11m (Utility allowance)

\<\<\>\>

Field number 20 of certificate

record format

e, Rent to Owner \<\<\>\>

Line 11k (Contract rent to owner)

\<\<\>\>

Field number 19 of certificate

record format

f, Gross Rent of Unit \<\<\>\>

Line 11n (Gross rent)

\<\<\>\>

Field number 21 of certificate

record format

k, Total OFTO Subsidy \<\<\>\>

Line llr (Total HAP)

\<\<\>\>

Field number 23 of certificate

record format

For a mixed family with prorated assistance under the

noncitizen rule who is assisted under OFTO, report the following

information from the attached OFTO formula in established fields

on the Form HUD-50058:

OFTO Formula Item: Report on Form HUD-50058:

cc, Total Number \<\<\>\>

Line 11ae (Total number eligible)

Eligible \<\<\>\>

Field number 31 of certificate

record format

dd, Total Number in \<\<\>\>

Line 11af (Total number in family)

Family \<\<\>\>

Field number 32 of certificate

record format

ee, Proration Percentage \<\<\>\>

Line 11ag (Proration percentage)

\<\<\>\>

Field number 33 of certificate

record format

ff, Prorated Total HAP \<\<\>\>

Line 11ah (Prorated Total HAP)

\<\<\>\>

Field number 34 of certificate

record format

gg, Mixed Family Total \<\<\>\>

Line llai (Mixed Family TTP)

Family Contribution \<\<\>\>

Field number 35 of certificate

record format

6\. Software Accommodation. To make it easier to calculate OFTO

rents and to report the required data, HUD suggests that HAs who

expect to make substantial use of OFTO ask their software

providers to add the OFTO formula onto their software, and to

also build in the transfer of the above data elements to the

appropriate fields of the required certificate record format for

reporting to HUD. Otherwise, it will be necessary to perform the

OFTO calculation manually and then input the above data elements

as indicated for Form HUD-50058 reporting.

7\. HAs Using HUD Family Reporting Software (FRS). The HUD

FRS 2.0 has not been developed to accommodate the special

instructions in this notice. HAs using FRS and that approve

over-FMR tenancies in the rental certificate program should

perform the OFTO calculation manually and then input the above

data elements as indicated for Form HUD-50058 reporting.

/s/

Kevin Emanuel Marchman

Assistant Secretary for

Public and Indian Housing

Attachment (attaches to 9818frm.pdf)