On August 18, HUD published Notice PIH 2026-21: Public Housing Operating Subsidy Grant Eligibility Calculations and Processing for Calendar Year 2027. The notice includes links to resource pages and deadlines and includes detailed explanations of the steps HUD and HAs must take to process and receive FY 27 Operating Subsidy Funds. The primary forms are the HUD-52722 for calculating the Utilities Expense Level (UEL) and HUD-52723 for calculating the total Program Expense Level (PEL). For FY 2027 funding, the updated forms must be submitted in the Public Housing Portal by June 30, 2027. Revision requests on previously submitted forms, or to revise pre-populated data must be submitted in the Public Housing Portal, are due by May 7, 2027. Rate Reduction Incentive requests must be submitted by September 30, 2026.
The notice includes instructions relating to add-ons, other incentives, properties undergoing conversions via RAD, processes for appealing HUD’s funding determinations, and additional information. The technical details of the calculations and process appear unchanged from the 2025 Operating Fund Notice.
Like prior year notices, the responsibility of HAs to provide accurate data is emphasized, and like 2024 the notice states that the submission of the Form 424 Request for Financial Assistance constitutes certification of compliance with various Executive Orders listed in the notice. For the first time, the notice references “applicants” and an “application”, continuing HUD’s efforts to treat public housing operating subsidy under the Annual Contributions Contract as a competitive grant program
The notice also has a new section titled “Post-Award Requirements and Administration,” and references compliance with “new grants management and reporting tools for all records pertinent to the Federal award. The recipient agrees to report on grant performance and financial activities (including vendor and cash disbursement supporting details for the recipient and its subrecipients) using these new tools when they are released.”
PHADA is preparing public comments on a proposed information collection relating to one of these new reporting tools and will provide further updates on that information collection and the Operating Fund processing notice in an upcoming issue of the Advocate.