9488 Federal Register / Vol. 62, No. 41 / Monday, March 3, 1997 / Notices

DEPARTMENT OF HOUSING AND

URBAN DEVELOPMENT

[Docket No. FR–4156-N–01]

Notice of Annual Factors for

Determining Public Housing Agency

Administrative Fees for the Section 8

Rental Voucher, Rental Certificate and

Moderate Rehabilitation Programs

AGENCY: Office of the Assistant

Secretary for Public and Indian

Housing, HUD.

ACTION: Notice.

SUMMARY: This Notice announces the

monthly per unit fee amounts for use in

determining the on-going administrative

fee for public housing agencies and

Indian housing authorities (HAs)

administering the rental voucher, rental

certificate and moderate rehabilitation

programs (including Single Room

Occupancy and Shelter Plus Care)

during Federal Fiscal Year 1997.

EFFECTIVE DATE: HUD will use the

procedures in this Notice to approve

year-end financial statements for HA

fiscal years ending on December 31,

1996; March 31, 1997; June 30, 1997;

and September 30, 1997. HAs also may

use these procedures to project earned

administrative fees in the annual HA

budget. The procedures in this Notice

apply to that portion of the HA fiscal

year that coincides with the Federal

Fiscal Year (FY) 1997 (i.e., from October

1, 1996, to September 30, 1997).

FOR FURTHER INFORMATION CONTACT:

Gerald J. Benoit, Director, Operations

Division, Office of Rental Assistance,

Office of Public and Indian Housing,

Department of Housing and Urban

Development, Room 4220, 451 Seventh

Street, SW, Washington, DC 20410–

8000, telephone number (202) 708–

0477. Hearing or speech impaired

individuals may call TTY number (202)

708–4594. (These numbers are not tollfree.)

SUPPLEMENTARY INFORMATION:

Paperwork Reduction Act Statement

The information collection

requirements contained in this notice

have been approved by the Office of

Management and Budget (OMB) in

accordance with the Paperwork

Reduction Act of 1995 (44 U.S.C. 3501–

3520), and have been assigned OMB

control number 2502–0348. 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.

I. Purpose and Substantive Description

(a) In FY 95 HUD changed the way

that HA administrative fees were

calculated. These new procedures were

published in the Federal Register on

January 24, 1995 (60 FR 4764). HUD

also issued an administrative Notice PIH

96–22, dated April 19, 1996, providing

more detailed processing instructions.

The system that HUD used to determine

administrative fees before FY 95 had

three different rates that were applied to

the Section 8 existing housing fair

market rents. Under the new system

implemented in FY 95, HAs were

funded for pre-FY 89 funding

increments at a rate of 8.2 percent of a

‘‘base amount’’ for the initial 600 rental

vouchers and rental certificates and 7.79

percent of a ‘‘base amount’’ for all rental

vouchers and rental certificates above

600. This same system using a ‘‘base

amount’’ was continued in FY 96.

(b) The Departments of Veterans

Affairs and Housing and Urban

Development, and Independent

Agencies Appropriations Act, 1997 (P.L.

104–204, 110 STAT. 2874) changed the

method to be used in calculating HA

administrative fees. The law establishes

a method for calculating HA fees for the

rental voucher, certificate, and moderate

rehabilitation (including Single Room

Occupancy and Shelter Plus Care)

programs in FY 97. The law, however,

reduced the percentages for FY 97

effective for the period from October 1,

1996 through September 30, 1997 to 7.5

percent of the HUD-determined ‘‘base

amount’’ for the first 600 units in an

HA’s rental voucher and rental

certificate programs combined, and for

the first 600 units in an HA’s moderate

rehabilitation program, and to 7 percent

of the HUD-determined ‘‘base amount’’

for each additional unit in these

programs over 600. Furthermore, the

law provides HUD may provide a

decreased fee for HA-owned units. For

FY 97, HUD has determined that HAs

will earn an administrative fee for HAowned rental voucher, rental certificate

and moderate rehabilitation units based

on 3 percent of the ‘‘base amount.’’

The law also made changes with

respect to preliminary fees and

administrative fees. Under the new law

HUD may approve preliminary fees of

$500 per unit for the initial funding

increment for the HA, but only in the

first year an HA administers a tenantbased rental voucher or rental certificate

program and only for an HA that did not

administer a tenant-based rental

voucher or certificate program before

September 26, 1996. For example, if an

HA is currently administering a rental

certificate program and it receives its

first funding increment under the rental

voucher program, the HA is not eligible

to receive a preliminary fee. The law

does not provide for preliminary fees for

the regular moderate rehabilitation

program or the moderate rehabilitation

single room occupancy program or the

moderate rehabilitation shelter plus care

program. HUD may also approve

additional administrative fees for costs

incurred in assisting families who

experience difficulty in obtaining

appropriate housing and for

extraordinary costs.

II. Applicability of HUD Notice PIH 96–

22

On April 19, 1996, HUD issued a

Notice (PIH 96–22) establishing the

procedures for the calculation of ongoing administrative fees for the rental

voucher and rental certificate programs.

The provisions of the HUD Notice PIH

96–22 do not apply for unit months

commencing October 1, 1996. Instead, a

revised administrative fee HUD Notice

will be issued.

III. Method To Determine Per Unit OnGoing Administrative Fee

(a) Method

A housing agency is paid an on-going

administrative fee for each unit month

for which a dwelling unit is covered by

a housing assistance payments contract.

Under the system for FY 97, the ongoing administrative fee is:

• 7.5 percent of a ‘‘base amount’’ for

the first 600 units in an HA’s rental

voucher and rental certificate programs

combined, and for the first 600 units in

an HA’s moderate rehabilitation

program.

• 7 percent of the ‘‘base amount’’ for

each additional rental voucher, rental

certificate, or moderate rehabilitation

unit above the 600-unit threshold.

In FY 95 and FY 96, the ‘‘base

amount’’ used by HUD was the higher

of (a) the FY 1993 fair market rent for

a two-bedroom unit in the HA’s market

area, or (b) the FY 94 fair market rent

for a two-bedroom unit, but not more

than 103.5 percent of the FY 93 fair

market rent. The new law provides that

this base amount may be adjusted in FY

97 to reflect changes in wage data or

other objectively measurable data that

reflect the cost of administering the

program in FY 96. Accordingly, the

monthly FY 97 per unit fee amounts

published in this notice were derived

from the new base amounts that have

been adjusted to reflect average local

government wages as measured by the

most recent two years of Bureau of

Labor Statistics data from the ES–202

series.
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(b) Published Fee Amounts

HUD has attached a schedule of

monthly per unit fee amounts for use by

HUD and HAs when preparing and

approving HA budgets and fiscal yearend financial statements. The tables are

organized by the HUD-established fair

market rent areas and show the monthly

fee amounts an HA will earn for each

unit under a housing assistance

payments contract on the first day of the

applicable month.

(1) Column A

The amount in this column is the

monthly per unit fee amount for up to

7,200 unit months (600 units) in Federal

FY 97 in an HA’s rental voucher and

rental certificate programs combined,

and for up to 7,200 unit months (600

units) in Federal FY 97 in an HA’s

moderate rehabilitation program. (This

amount was developed by multiplying

the fee ‘‘base amount’’ by 7.5 percent.)

For the HA’s rental voucher and rental

certificate programs combined, and for

the HA’s moderate rehabilitation

program, the reimbursement is

computed by multiplying the number of

unit months that were under a housing

assistance payments contract during

Federal FY 97 by the monthly per unit

fee amount in column A (up to a

maximum of 7,200 unit months during

Federal FY 97). The maximum number

of unit months under a housing

assistance payments contract in Federal

FY 97 during the HA’s fiscal year that

this revised procedure is first

implemented and for which the column

A fee amount may be used, depends on

the HA fiscal year end:

December 31 HA—1,800 unit months

(7,200×.25 [3 months] of FY 97)

March 31 HA—3,600 unit months

June 30 HA—5,400 unit months

September 30 HA—7,200 unit months

(2) Column B

The amount in this column is the

monthly per unit fee amount for any

unit months in Federal FY 97 in excess

of 7,200 unit months (for which a fee

was calculated from column A) in the

rental voucher and rental certificate

programs combined, and in excess of

7,200 unit months in the moderate

rehabilitation programs. This amount

was developed by multiplying the HUD

established fee base amount by 7

percent. For the HA’s rental voucher

and rental certificate programs

combined, and for the HA’s moderate

rehabilitation program, the

reimbursement is computed by

multiplying the number of unit months

that were under a housing assistance

payments contract during Federal FY 97

that exceeds 7,200 unit months by the

monthly per unit fee amount in column

B). The monthly per unit fee in column

B will be multiplied by the number of

unit months that rental voucher, rental

certificate and moderate rehabilitation

units under housing assistance

payments contracts during Federal FY

97 exceeds unit months for which a fee

is calculated from column A.

(3) Column C

The amount in this column is the

monthly per unit fee amount for HA

owned units for Federal FY 97 under

the rental voucher, rental certificate, or

moderate rehabilitation programs. This

amount was developed by multiplying a

HUD established fee base by 3 percent.

The monthly per unit fee amount in

column C will be multiplied by the

number of unit months that rental

voucher, rental certificate, or moderate

rehabilitation units owned by the HA

are under housing assistance payments

contracts during Federal FY 97.

(c) Future Year Publication Date

For subsequent fiscal years, HUD will

publish an annual Notice in the Federal

Register establishing the monthly per

unit fee amounts for use in determining

the on-going administrative fees for HAs

operating the rental voucher, rental

certificate and moderate rehabilitation

programs in each metropolitan and each

non-metropolitan fair market rent area

for that Federal fiscal year. The annual

change in the per-unit-month fee

amounts will be based on changes in

wage data or other objectively

measurable data, as determined by

HUD, that reflect the costs of

administering the program.

The amounts shown on the attached

schedule do not reflect the authority

given to HUD to increase the fee if

necessary to reflect extraordinary

expenses such as the higher costs of

administering small programs and

programs operating over large

geographic areas or expenses incurred

because of difficulties some categories

of families are having in finding

appropriate housing. HUD will consider

HA requests for such increased

administrative fees. Furthermore, the

amounts shown do not include

preliminary fees.

IV. Other Matters

Environmental Finding

This notice is categorically excluded

from the requirements of 24 CFR part

50, the HUD regulations which

implement section 102(2)(C) of the

National Environmental Policy Act of

1969 (NEPA). [See 24 CFR § 50.19(b)(3).]

This notice does not require

environmental review because it does

not alter physical conditions in a

manner or to an extent that would

require review under NEPA or the other

laws and authorities cited at § 50.4.

Federalism Impact

The General Counsel, as the

Designated Official under section 6(a) of

Executive Order 12612, Federalism, has

determined that the policies contained

in this notice will not have substantial

direct effects on States or their political

subdivisions, or the relationship

between the federal government and the

States, or on the distribution of power

and responsibilities among the various

levels of government. As a result, the

notice is not subject to review under the

Order. This notice pertains to the

determination of administrative fees for

HAs administering the rental voucher,

rental certificate and moderate

rehabilitation programs during Federal

Fiscal Year 1997, and does not

substantially alter the established roles

of the Department, the States, and local

governments.

Impact on the Family

The General Counsel, as the

Designated Official under Executive

Order 12606, The Family, has

determined that this notice does not

have potential for significant impact on

family formation, maintenance, and

general well-being within the meaning

of the Executive Order and, thus, is not

subject to review under the Order. This

notice pertains to the determination of

administrative fees for HAs

administering the rental voucher, rental

certificate and moderate rehabilitation

programs during Federal Fiscal Year

1997, and does not substantially alter

the requirements of eligibility for the

programs involved.

Accordingly, the Department

publishes the monthly per unit fee

amounts to be used for determining HA

administrative fees under the rental

voucher, rental certificate and moderate

rehabilitation programs as set forth on

the schedule appended to this notice.

Dated: February 21, 1997.

Kevin Emanuel Marchman,

Acting Assistant Secretary for Public and

Indian Housing.

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[FR Doc. 97–5014 Filed 2–28–97; 8:45 am]

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