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News Archives: Operating Fund

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In 1998, Congress directed HUD to determine how much it should cost to operate well-run public housing. The Harvard Cost Study (PDF), completed in 2003, attempted to answer this question. The study formed the basis for a series of negotiated rulemaking sessions carried out in 2004, in which representatives from all concerned parties agreed on an operating fund rule.

In April 2005, HUD proposed an operating fund rule that differed significantly from the negotiated rule. During the public comment period, PHADA and many others pointed out the unilateral changes (PDF) HUD had made to the rule. In September 2005, the Department issued the final rule. It generally reverted to the positions from the negotiated rule, with a few significant exceptions, expected to cost housing authorities between $100 and $200 million.

In January 2006, HUD began assembling a website on the issue, in an attempt to answer some of the many questions housing authorities have asked about how the rule is being implemented.

The links below cover the issue in descending chronological order.

JULY 27, 2016 ADVOCATE
Status of Legislation at Recess
Reminders for Making the Most of this Long Summer Break

JANUARY 8, 2015
New Submission Dates for the Public Housing Operating Fund Released

DECEMBER 19, 2014
Public Housing Operating Fund Submission Forms Experience Challenges

NOVEMBER 10, 2014
Public Housing Operating Fund Submission Schedule Released

OCTOBER 2, 2014
CY 2014 Final Operating Fund Obligations

MAY 17, 2013
FY 2014 Operating Funds Process and Schedule

MARCH 8, 2013
HUD Releases New Operating Fund Proration Information

FEBRUARY 27, 2013 ADVOCATE
Public Housing Operating Fund Formula Revisited
HUD Has Failed to Correct Serious Problems

FEBRUARY 27, 2013
HUD Sets March Operating Fund Proration Level at 81%

DECEMBER 26, 2012
HUD Announces Plans for January and February Operating Fund Distribution
Operating Fund Proration set at 92 percent

OCTOBER 17, 2012 ADVOCATE
HUD Summarizes Its Operating and Capital Fund Merger Listening Sessions
Almost All Sessions Support Full Fungibility, But Oppose Merger as a Funding Risk

JANUARY 24, 2012
HUD Issues Notice on Use of Operating Funds

OCTOBER 7, 2010
2010 Operating Subsidy Proration Now at 103 Percent

OCTOBER 4, 2010
2010 Operating Subsidy Proration at 100 Percent

APRIL 6, 2010
SAGIS Updates and New Operating Fund Data Submission Extension

MARCH 10, 2010 ADVOCATE
HUD Extends SAGIS 2010 Operating Fund Deadline to March 31, 2010
Also Extends FDS submission deadlines to 3/31/2010

DECEMBER 9, 2009
House and Senate Conferees Finalize 2010 THUD Appropriations

JANUARY 30, 2007
House Seeks $300 Million Increase in Operating Fund - Spending Bill Also Boosts HCV Funding

JANUARY 26, 2007
House to Consider 2007 Appropriations Next Week - PHADA Pushing for More Funding
Reminder: Bollinger Scholarship Applications Due Feb. 5

JANUARY 24, 2007 ADVOCATE
2007 Operating Fund Proration Set at 76 Percent

JANUARY 18, 2007
PHADA comments on Docket No. FR-5108-P-01

JANUARY 5, 2007
HUD Announces 2007 Operating Fund Proration
Set at Historically Low 76 Percent for First Quarter; Some HAs Plan “Day of Silence” Due to Budget Cuts

DECEMBER 27, 2006 ADVOCATE
President’s Forum: Stop-loss confusion illustrates HUD’s incapacity on asset management and need for more Congressional oversight

DECEMBER 27, 2006 ADVOCATE
Housing authorities need QHWRA’s capital fund flexibility
Congress and HUD should uphold QHWRA’s provisions authorizing use for administrative purposes

DECEMBER 27, 2006
PHADA comments on Docket No. FR-5105-P-01

DECEMBER 13, 2006 ADVOCATE
HUD proposes two new rules on transition funding for asset management
Department provides conflicting information on stop-loss demonstration date

DECEMBER 7, 2006
HUD changes stop-loss demonstration date in proposed rule on transition funding
Announcement on website states date is still April 15, 2007

NOVEMBER 29, 2006 ADVOCATE
Housing authorities submit comments on asset management
Commenters voice strong concerns about HUD’s guidance

NOVEMBER 29, 2006 ADVOCATE
President’s Forum: Other groups and HAs submit solid asset management comments
Happy holidays to all

NOVEMBER 15, 2006 ADVOCATE
PHADA comments on asset management guidance

NOVEMBER 8, 2006
PHADA submits detailed comments on HUD’s asset management guidance
Fifty-eight pages of comments propose changes in 30 different areas

NOVEMBER 1, 2006
Deadline for asset management comments fast approaching
Make sure to submit your comments before November 6

NOVEMBER 1, 2006
More than 100 Representatives urge House appropriators to support fair asset management guidance

NOVEMBER 1, 2006 ADVOCATE
PHADA supports Senate language on asset management implementation dates
Also strongly in favor of Senate’s confirmation of capital fund flexibility

NOVEMBER 1, 2006 ADVOCATE
HUD must develop a “reasonable” property management fee
PHADA has proposed several alternatives

OCTOBER 6, 2006
PHADA urges comments on asset management guidelines
HAs must submit their input by November 6 deadline

OCTOBER 4, 2006
Congressman circulating letter in support of Senate bill
PHADA members: Please call your representatives and ask them to sign on

SEPTEMBER 20, 2006 ADVOCATE
HUD data proves its bookkeeping fee proposal is inadequate
Input missing for thousands of FHA properties in HUD benchmark

SEPTEMBER 13, 2006
HUD moves stop-loss application date to April 2007
Agencies given six additional months to complete submission kit

SEPTEMBER 6, 2006
Answers from HUD to frequently asked questions on stop-loss

SEPTEMBER 1, 2006
HUD announces ineffective plan to implement 5 percent stop-loss solution

AUGUST 15, 2006
PHADA asks HUD general counsel to review asset management guidance

AUGUST 2, 2006 ADVOCATE
HUD issues stop-loss submission kit
Case study evaluation highlights concerns with Notice 2006-14

AUGUST 1, 2006
PHADA and CLPHA urge housing authorities to publicize the local effects of the operating fund shortfall

JUNE 29, 2006
HUD announces 85.5 percent proration for 2006
PHADA warned last summer about devastating consequences of HUD’s funding method

JUNE 14, 2006
PHADA writes Senator Bond to correct HUD errors
HUD response to Bond’s May 1 letter is inaccurate, incomplete and misleading

JUNE 13, 2006
HUD publishes an asset management guidebook

JUNE 12, 2006
House Appropriations Committee rejects PHADA’s operating fund rule fix

JUNE 7, 2006 ADVOCATE
PHADA requests backup data on property management fees for the fourth time
Documentation needed to evaluate whether HUD fees are “reasonable”

MAY 24, 2006 ADVOCATE
Industry groups submit stop-loss guidance proposal to HUD
Specific changes would make Notice 2006-14 workable, achievable and meaningful

MAY 2, 2006
Senators Bond and Murray challenge HUD restrictions on Capital Fund
Lawmakers assert Notice 2006-14 “improperly limits rights given to PHAs by QHWRA”

APRIL 26, 2006 ADVOCATE
HUD needs to reconsider asset management fee amount
$10 PUM in Notice 2006-14 is not adequate to meet HUD’s own standards

APRIL 26, 2006 ADVOCATE
President’s Forum
What does “asset management” mean for the future of resident services and community centers?

APRIL 12, 2006 ADVOCATE
Notice gives details on HUD’s stop-loss guidance
HUD fails to provide a “reasonable” standard for property management fees

APRIL 12, 2006 ADVOCATE
President’s Forum: HAs cannot count on a promise of deregulation
HUD must either provide deregulation now or make its asset management guidance more flexible

MARCH 29, 2006 ADVOCATE
President’s Forum: What’s needed for successful implementation of the operating fund rule
PHADA trying to ensure that all housing authorities are treated fairly

MARCH 23, 2006
HUD issues stop-loss guidance
Notice 2006-14 outlines requirements to convert successfully to asset management by October 1, 2006

MARCH 20, 2006
HUD publishes complete list of gainers and losers under new operating fund formula

MARCH 16, 2006
PHADA issues new publication on HUD's flawed asset management guidance
Working to ensure rules are fair to all housing authorities

MARCH 15, 2006 ADVOCATE
PHADA, CLPHA hold Capitol Hill briefing on operating fund rule
Message to Congress: Asset management—yes; micromanagement—no!

MARCH 15, 2006
HUD schedules a webcast on asset management property groupings (AMP numbering)

MARCH 9, 2006
PHADA writes HUD to express serious concerns about operating fund

MARCH 7, 2006
PHADA, CLPHA hold Capitol Hill briefing on operating fund rule
Message to Congress: Asset management—yes; micromanagement—no!

MARCH 2, 2006
Senator Bond criticizes HUD’s budget
Says department’s asset management guidance “micromanages” HAs

MARCH 1, 2006 ADVOCATE
President’s Forum: The FY 2007 budget
HUD’s blueprint for creating bankrupt “asset managers”

MARCH 1, 2006 ADVOCATE
HUD holds two-day meetings on property management fees
PHADA suggests additional options for HUD to consider

FEBRUARY 15, 2006 ADVOCATE
HUD proposes applying property management fee concept to Section 8 and Capital Fund
Separating central from front-line costs would greatly reduce HA flexibility

JANUARY 18, 2006
New web page on operating fund available from HUD
Site offers forms, subsidy calculator, Q&A

JANUARY 5, 2006
HUD corrects the PEL calculation notice

DECEMBER 29, 2005
HUD publishes new operating fund formula PEL calculation
New notice describes PEL calculation process, but omits formula coefficients

DECEMBER 28, 2005 ADVOCATE
HUD convenes discussions on stop-loss guidance
Questions arise on requirements to be met by October 1, 2006

NOVEMBER 30, 2005 ADVOCATE
Serious concerns emerge about HUD changes in op fund final rule calculation of formula income
Industry groups tell HUD Secretary changes to negotiated rule may cost HAs between $100 and $200 million

NOVEMBER 30, 2005 ADVOCATE
Joint industry letter to Secretary Jackson on formula income calculation

NOVEMBER 16, 2005 ADVOCATE
President’s Forum: HUD should affirm that HAs have “maximum flexibility” in asset management practices
PHADA trying to avoid a “square peg–round hole” scenario

NOVEMBER 16, 2005 ADVOCATE
HUD considers guidance on property groupings
PHADA sends HUD its interpretation of “reasonable” groupings

NOVEMBER 16, 2005
Notice PIH 2005-35: How to apply for 2006 operating subsidy

NOVEMBER 15, 2005
Notice PIH 2005-34: Initial guidance on implementation of the operating fund rule

NOVEMBER 2, 2005 ADVOCATE
HUD notice delays operating fund formula until 2007
Gives agencies losing funding additional year to stop losses

NOVEMBER 2, 2005 ADVOCATE
President’s Forum
HUD delays parts of the new operating fund rule; a look at some of the reasons

OCTOBER 20, 2005
HUD will soon publish operating fund rule changes

OCTOBER 19, 2005 ADVOCATE
HUD faces issues in implementing operating fund rule
Meeting timetables will be a major challenge

OCTOBER 13, 2005
HUD to delay new operating funding formula until 2007

OCTOBER 5, 2005 ADVOCATE
HUD issues final operating fund rule
New rule generally reverts to negotiated rule’s positions, except for inflation factor

SEPTEMBER 22, 2005
HUD issues final operating fund rule

SEPTEMBER 16, 2005
HUD prepares to issue final operating fund rule
Final rule reverses all but two changes made in proposed rule

AUGUST 23, 2005
HUD notice describes temporary public housing operating fund system for 2006
PIH Notice 2005-31 explains transition to calendar year funding

AUGUST 19, 2005
PHADA collaborates in a joint operating fund implementation letter

JULY 6, 2005 ADVOCATE
House Appropriations Committee sets HUD funding for 2006
Committee also calls for implementation of negotiated operating fund rule

JULY 6, 2005 ADVOCATE
President’s Forum
The latest on the operating fund rule; PHAs, Congress take action to reinstate original agreement

JUNE 22, 2005
Forty-two Representatives call for HUD to issue negotiated rule
Bipartisan group includes Republican chair of housing subcommittee

JUNE 20, 2005
More information on House HUD Appropriations Subcommittee's 2006 bill

JUNE 17, 2005
PHADA submits comments opposing HUD's proposed operating fund rule

JUNE 15, 2005
House Appropriations Subcommittee marks up 2006 HUD funding bill
Bill increases public housing funding, includes language on negotiated rulemaking

JUNE 13, 2005
June 13 is the last day to send in operating fund comments
PHADA urges members to contact Congress: Goal is to get HUD to withdraw rule

JUNE 8, 2005
How to comment on regulations on the web
So many comments, so little room

JUNE 7, 2005
Entire NY Congressional delegation urges HUD to implement negotiated operating fund rule
Bipartisan group criticizes department for reneging on original agreement

JUNE 3, 2005
REMINDER: PHADA members urged to comment on operating fund rule
All HAs lose under HUD's gutted version

MAY 18, 2005
Members urged to comment on operating fund rule
Comments due by June 13

MAY 10, 2005
New York Mayor Bloomberg opposes HUD's operating fund rule

MAY 11, 2005 ADVOCATE
HUD's estimate of subsidies under the negotiated rule and HUD's proposed rule

APRIL 13, 2005 ADVOCATE
Negotiated Rulemaking Operating Fund Summary with HUD changes (PDF)
(Updated version of summary chart originally published in the July 14, 2004 Advocate)

APRIL 13, 2005 ADVOCATE
President's Forum: Much to PHADA’s dismay, new operating fund rule strays from neg-reg agreement

APRIL 13, 2005 ADVOCATE
HUD sends Congress operating fund rule with unilateral changes

APRIL 13, 2005 ADVOCATE
PHADA's estimates of how this rule will affect funding (PDF)

JUNE 17, 2004
Operating Fund Negotiated Rulemaking Committee reaches final agreement

MAY 14, 2004
Additional progress made at Negotiated Rulemaking session in Atlanta

APRIL 16, 2004
Many significant issues resolved during 2nd 'Neg-Reg' session

APRIL 13, 2004
'Neg-Reg' committee holds opening sessions

MARCH 10, 2004
Department publishes final "Neg Reg" list and meeting dates

FEBRUARY 26, 2004
House Committee criticizes HUD Voucher Proposal; PHADA files comments on Harvard Cost Study Negotiated Rulemaking panel; Alphonso Jackson to address Senate Committee today

DECEMBER 17, 2003 ADVOCATE
PHADA submits comments on the Harvard Cost Study

NOVEMBER 19, 2003 ADVOCATE
HUD seeks comments on Harvard Cost Study; Request welcomed but does not take place of neg-reg

SEPTEMBER 16, 2003
Taking Stock of Public Housing (PDF)
(Report presented to PHADA by the Harvard Cost Study research team)

OCTOBER 29, 2003
HUD establishes Cost Study website

JULY 25, 2002
PHADA and other industry groups to hold briefing on Harvard Cost Study

Older operating fund news items from the PHADA archive:

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