The Department of Housing and Urban Development's mission is to increase homeownership, support community development and increase access to affordable housing free from discrimination. HUD fulfills this mission through high ethical standards, management and accountability, and by forming partnerships with community organizations.
In fiscal year 2003, the Department made available approximately $3.60 billion in operating subsidies for approximately 1,204,000 public housing units. No development was funded under this program; such development of new or replacement units that did occur was primarily financed with funds from the modernization accounts (14.852 and 14.859) or HOPE VI (14.866).
Uses and Use Restrictions
Operating subsidy funds are provided to PHAs to achieve and maintain adequate operating and maintenance service and reserve funds.
Funds are made to PHAs based on the extent to which their projected total allowable expenses (as determined by formula) exceed their projected income (also as determined by formula) from rents and other sources.
Public Housing Agencies established in accordance with State law are eligible.
The proposed program must be approved by the local governing body.
Pursuant to the Native American Housing Assistance and Self Determination Act of 1996, Indian Housing Authorities (IHAs) are no longer eligible for funding under the U.S.
Housing Act (of 1937) or the Indian Housing Act.
Lower income families which include citizens or eligible immigrants. The term "Families" includes but is not limited to: (1) a family with or without children; (2) an elderly family (head, spouse, or sole member 62 years or older), (3) near elderly family (head, spouse, or sole member 50 years old but less than 62 years old); (4) a disabled family; (5) a displaced family; (6) the remaining member of a tenant family; or (7) a single person who is neither elderly, near-elderly, displaced, or a person with disabilities.
The applicant must support the application/proposal by furnishing data that the program is consistent with the Public Housing Agency (PHA) Plan (Quality Housing and Work Responsibility Act of 1998). The PHA Plan is designed for both long-term and short-term strategies for addressing the housing needs of the community. The proposed program should demonstrate that it is responsive to the PHA Plan by identifying conditions of the housing stock in the community and the housing assistance needs of lower-income families (including the elderly, persons with disabilities, large families and those displaced or who will be displaced) residing in or expected to reside in the community.
Aplication and Award Process
Execution of Cooperative Agreement between local government and local PHA.
Sites are subject to review by the chief executive officer of the unit of local government in accordance with Section 213 of the Housing and Community Development Act of 1974.
An environmental assessment pursuant to NEPA is required for this program.
This program is eligible for coverage under E.O.
12372, "Intergovernmental Review of Federal Programs." An applicant should consult the office or official designated as the single point of contact in his or her State for more information on the process the State requires to be followed in applying for assistance, if the State has selected the program for review.
Projects approved after September 30, 1986, are covered under OMB Circular No.
A-102, except those provisions of the circular which OMB has granted waivers.
PHAs may submit a full proposal (HUD-52483-A) which includes, but is not limited to a project description, development method, offer of sale of real property, site information and financial feasibility pursuant to 24 CFR Part 941 and Handbook 7417.l REV-l and, if applicable, additional statutory or policy requirements governing the funds provided for the particular fiscal year. This program is excluded from coverage under OMB Circular No. A-110.
Usually the HUD Field Office Manager makes final decision to approve individual applications.
PHA Applications may be submitted at any time; PHA applications must be amended or resubmitted to meet current year funding notice requirements when issued.
Housing Act of 1937, as amended.
Range of Approval/Disapproval Time
Approximately 60 days from the deadline for applications for processing applications/proposals.
Formula and Matching Requirements
Funds are provided to PHAs to cover the capital cost of a project. Additional operating subsidies are available to maintain adequate operating and maintenance services and reserve funds. There are no matching requirements; however an indirect local contribution results from the difference between full local property taxes and payments in lieu of taxes (PILOT) made by local PHAs. This program has maintenance of effort (MOE) requirements, (see funding agency for further details).
Length and Time Phasing of Assistance
Contributions made annually for up to 30 years for development and 20 years for modernization program reservations approved through September 30, 1986 for projects with permanent financing. Annual appropriations of capital funds for development and modernization started October 1, 1986. Projects funded with capital funds after October 1, 1986 will have contract terms of 40 years.
Post Assistance Requirements
Annual Operating Budget; periodic occupancy and financial reports.
Periodic fiscal, management, maintenance and energy audits.
Those necessary to indicate compliance with Annual Contributions Contract.
FY 07 $3,864,000,000; FY 08 est $4,200,000,000; and FY 09 est $4,300,000,000.
Range and Average of Financial Assistance
Regulations, Guidelines, and Literature
24 CFR 990, 24 CFR 941, Handbook 7417.1 (Rev.-1) (Public Housing-Development Handbook), Handbook 7465.1 Rev-2. (Public Housing Occupancy: Admission).
Regional or Local Office
HUD Field Office listed in the Catalog Address Appendix IV that has jurisdiction over the area in which the dwellings are to be located.
Assistant Secretary for Public and Indian Housing, Department of Housing and Urban Development, Washington, DC 20410. Telephone: (202) 708-0950. Use the same number for FTS.
Criteria for Selecting Proposals