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Important Update on Operating Fund Distributions Under the CR

In a document dated January 12, 2024, HUD has provided its Explanation of Calendar Year (CY) 2024 Public Housing Operating Subsidy Obligations for February, March, and Three Weeks of April. In a recent call with HUD, officials highlighted the following things to keep in mind regarding HUD’s calculation and obligation of 2024 Public Housing Operating Funds under the continuing resolution (CR).

  • HUD is calculating amounts conservatively until a full budget is passed. 
  • Under the CR, HUD can only obligate on a monthly basis.
  • The current CR allows HUD to obligate funds covering February, March, and about three weeks of April. 
  • HUD will distribute the amount calculated to cover February, March, and most of April by splitting the entire amount evenly between the February and March obligations. This will allow earlier access to the funds for HAs, but will result in a lower amount in the April obligation, as most of the funding for April was obligated as part of the February and March obligations. Agencies are reminded to plan ahead for that anomaly in Operating Fund obligations in eLOCCS. 
  • The current Operating Fund Proration of 87.44% is based on an estimate using the lower House-approved budget proposal. If the final 2024 federal budget includes an amount higher than the House proposal, subsequent obligations will be adjusted to ensure each agency receives the proper amount for the full year.
  • This is the lowest proration in several years and is compounded by the fact that many HAs are having problems collecting rent while insurance and other costs spiral. Thus, PHADA encourages agencies to continue advocacy efforts with legislators to approve a full-year budget with no less than the higher Senate appropriations amounts for the Public Housing Operating Fund. 

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