PIH issues revised notice on 2014 op sub eligibility calculations

On June 25, 2013 HUD’s Office of Public and Indian Housing (PIH) issued Notice PIH 2013-16 to provide instructions for the calculation of 2014 operating subsidy eligibility. A revised version of the notice was posted yesterday. The new notice, Notice PIH 2014-07, retains the original 2013 issuance date. It contains revisions in three program areas.

Timely obligation of operating funds: The notice reminds PHAs that operating subsidy must be obligated no later than the end of the applicable calendar year (CY). An obligation is defined as a binding agreement that will require an outlay or expenditure of funds immediately or in the future. If a PHA has not disbursed all CY 2014 operating subsidy by December 31, 2014, it should maintain sufficient documentation to demonstrate that any remaining balance is obligated.

EPA pilot program: HUD is seeking PHAs to participate in a pilot program utilizing the Environmental Protection Agency’s (EPA) ENERGY STAR Portfolio Manager system. The system is designed to assist PHAs in managing their utility consumption. HUD is exploring ways to import data directly from the EPA system to pre-populate 52722 tools.

HUD plans to introduce Portfolio Manager for voluntary PHA use in CY 2015. Contact information is provided for interested PHAs.

Flat rent: The following paragraph is Part 12 of the revised notice.

The 2014 HUD appropriations act requires that each public housing agency establish a flat rent for each unit that shall not be lower than 80% of the applicable FMR established under 8(c) of the U.S. Housing Act of 1937. PHAs are required to establish said flat rents by June 1, 2014. The 2014 appropriations act also requires HUD to take flat rents into account in determining CY 2014 funding allocations. HUD will do this by modifying PHA operating subsidy eligibility to account for flat rent. HUD will be publishing a notice shortly to provide guidance on the implementation of these flat rent provisions.

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