public housing operating fund
DESCRIPTION
Public Housing Operating Fund. Julie Miles, Financial Analyst HUD—Kansas City, KS 913-551-5529. Agenda. Formula Unit Months Utilities Add-ons Formula Income PUM Change in Utility Allowances Stop-Loss. Formula. PEL X EUM +UEL X EUM + Add-ons - PowerPoint PPT PresentationTRANSCRIPT
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Public Housing Operating Fund
Julie Miles, Financial AnalystHUD—Kansas City, KS
913-551-5529
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Agenda
Formula
Unit Months
Utilities
Add-ons
Formula Income
PUM Change in Utility Allowances
Stop-Loss
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Formula
PEL X EUM
+ UEL X EUM
+ Add-ons
– Formula Income X EUM
= Operating Subsidy Eligibility
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Unit Months
Eligible Unit Months (EUM)
Occupied Units
Approved Vacancies
Limited Vacancies
ACC Units Ineligible for OpSub
Units Leased to Tenants Over-Income at Move-in
Units Offline for Non-Dwelling Use (ex. Storage, Office
Space, Rental to Businesses, etc.)
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Unit Months Reporting Period
Latest 12 months ended June 30 CY 09: 7/1/07 – 6/30/08
Reconciliation of ACC Units: Units as of 7/1 Plus Units Added Less Units Deleted Units as of 6/30
Monthly Status Based on Unit’s Status as of 1st or Last Day of Month Chosen by PHA
Future Expectation: Pre-populated from PIC HUD-50058 Reporting Unit Status Selection (ex. Vacant, Mod, Exception)
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EUM Occupied
Under ACC & Occupied by Public Housing Eligible Family Under Lease
Approved Vacancies Modernization Special Use: Resident Services, Resident Organizations,
Self-Sufficiency and Anti-Crime Initiatives Litigation Casualty Loss Settlement Delays Disasters Changing Market Conditions
Limited Vacancies More Than 100 Units = Up to 3% Total ACC Unit Months 100 Units or Less = Up to 60 Unit Months
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Project Expense Level (PEL)
PEL X EUM
+ UEL X EUM
+ Add-ons
– Formula Income X EUM
= Operating Subsidy Eligibility
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Project Expense Level (PEL) Estimated Cost for PH Projects Compared to Actual
Costs of Federal Housing Administration Projects 10 Characteristics Calculated CY07 Inflated Each Year by HUD-Determined Weighted
Average Percentage Increase In Local Government Wages and Salaries for the Area PHA Is Located and Non-Wage Expenses
2009 Advisory Committee Will Review Methodology to Evaluate PEL Based on Actual Cost Data
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Utilities Expense Level (UEL)
PEL X EUM
+ UEL X EUM
+ Add-ons
– Formula Income X EUM
= Operating Subsidy Eligibility
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Utilities Expense Level (UEL)
Payable Consumption
X Rate
- Excess Utilities
X Inflation or Deflation
= UEL
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UEL Payable Consumption
Current Consumption
+ 75% Decreased Consumption
- 75% Increased Consumption
= Payable Consumption
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UEL Payable Consumption
Current Consumption Latest 12 Months Ended June 30 CY 09: 7/1/07 – 6/30/08
Compare Current Consumption to Rolling Base Average Annual Consumption for 36 Month Period Ended
June 30--18 Months Prior to Applicable Funding Period CY 09 Year 1: 7/1/06 – 6/30/07 CY 09 Year 2: 7/1/05 – 6/30/06 CY 09 Year 3: 7/1/04 – 6/30/05
Consumption Incentive or Penalty PHA Retains 75% of Cost Savings Due to Decreased
Consumption PHA Absorbs 75% of Cost Increase Due to Increased
Consumption
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UEL
Actual Average Utility Rate Latest 12 Month Ended June 30 CY 09: 7/1/07 - 6/30/08 Actual Cost ÷ Actual Consumption = Actual Average Rate
Subtract Excess Utilities Consumption Surcharge Latest 12 Months Ended June 30 CY 09: 7/1/07 - 6/30/08
Inflation/Deflation Factor One Annual factor for All Utilities in Specific Geographic
Areas Fuels & Utilities Component of the US Dept of Labor BLS
CPI-U
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Add-Ons
PEL X EUM
+ UEL X EUM
+ Add-ons
– Formula Income X EUM
= Operating Subsidy Eligibility
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Add-Ons Self-sufficiency
Only Elderly/Disabled Service Coordinator Renewals Energy Loan Amortization PILOT
Greater of Most Recent FDS or Cooperation Agreement Audit
Most Recent FDS Cost is “Proxy” for Next Audit No Adjustment of Proxy to Actual cost
Resident Participation: $25 Occupied Unit Asset Management (Only if COCC & Multiple
AMPs) Information Technology Fee: $2 PUM under ACC Asset Repositioning (Demo/Dispo)
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Formula Income
PEL X EUM
+ UEL X EUM
+ Add-ons
– Formula Income X EUM
= Operating Subsidy Eligibility
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Formula Income
Tenant Rent / Unit Months Leased
Frozen at 2004 Level for CY07- CY09 OpSub
2004 FDS
FYEs 3/31/04, 6/30/04, 9/30/04, or 12/31/04
Adjusted Annually by PUM Change in Utility
Allowances (UA)
Appeal for Adjustment of Baseline Income If Severe
Local Economic Hardship
2009 Reevaluate Frozen Concept
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PUM Change in UA
Required for PHAs with Any Tenant Paid Utilities, Regardless of Whether Utility Allowance Schedule Changed
Prorate UA if Rent Prorated for Mid-Month Move-in or Move-out
Exclude Off-line Units (ex. Tenants Over-Income at Move-in, Special Use, Storage, Office)
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PUM Change in UA
FYE 2004
Utility Allowances Given ÷ Unit Months
Leased = PUM UA
Reporting Period CY09 7/1/07-6/30/08
Utility Allowances Given ÷ Unit Months
Leased = PUM UA
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Transition Calculation: Gainers
2-Year Phase-In
Gain Included in OpSub Calculation
50% Gain Subtracted in 1st Year (CY 07)
No Gain Subtracted in 2nd Year (CY 08)
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Transition Calculation: Decliners
5-Year Phase-In Reduction Included in OpSub Calculation
Year 1 CY 07 5% Limit = 95% Add-on Year 2 CY 08 24% Limit = 76% Add-on Year 3 CY 09 43% Limit = 57% Add-on Year 4 CY 10 62% Limit = 38% Add-on Year 5 CY 11 81% Limit = 19% Add-on
Cost-Benefit of Stop-Loss
Successfully Apply by: 10/15/07 = Loss Frozen @ 5% CY07+ 4/15/08 = Loss Frozen @ 24% CY08+ 10/15/08 = Loss Frozen @ 43% CY 09+ 10/15/09 = Loss Frozen @ 62% CY 10+ 10/15/10 = Loss Frozen @ 81% CY 11+
Alternate Asset Management for PHAs with Less Than 250 Units
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Stop-Loss
Traditional Asset Management
PHAs with 250+ Units
COCC & Multiple AMPs
Alternate Asset Management
PHAs with Less Than 250 Units
Limit Administrative Costs (Excluding Audit)
Project Performance
Risk Management
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Alternate AM
Admin Calculation Administrative Salaries + Administrative Benefits + Outside Management Fees + Administrative Operating Expenses Divide by Occupied & Approved Vacant Unit
Months
Admin Limits Schedule of Management Fees, Table 2, 80th
Percentile Administrative Costs http://www.hud.gov/offices/pih/programs/ph/am/
accounting.cfm
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Alternate AM
Review Project Performance & Address Areas of Non-Performance REAC Physical Inspection score at least 70 Crime & Drug Problems Not Exceeding 120% of
Surrounding Community At least 95% Occupied Tenant Accounts Receivable 7% or Less of
Monthly Rent Unit Turnaround & Work Orders scores better
than “D” Utility Consumption Not Exceeding 120% of
Agency Average
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Alternate AM
Risk Management Not Troubled for PASS, FASS, MASS or
Capital Fund No Outstanding FHEO Compliance Findings or
Voluntary Compliance Agreement Not Implemented
No Current Energy Audit No Outstanding IG Audit Findings Greater
Than 6 Months Old Without Progress Compliance with ACOP & Other Related
Occupancy Directives
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Alternate AM
Risk Management (continued) Satisfactory Progress under RHIIPS/RIM
Corrective Action Plan 95% or Higher HUD-50058 Reporting Meeting CFP Obligation & Expenditure
Deadlines No other Major Compliance Deficiencies
HUD May Consider PHA Progress in Addressing Compliance Issues and Other Extenuating Circumstances
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Guidance
PIH Notice 2008-33 CY09 OpSub http://www.hud.gov/offices/adm/ hudclips/notices/pih/files/08-33PIHN.doc
PIH Notice 2008-31 Stop Loss Year 3 http://www.hud.gov/offices/adm/ hudclips/notices/pih/files/08-31PIHN.doc