Notice: Public and Indian Housing: Public Housing Operating Fund Program Project Expense Levels Computation Correction

602 Federal Register / Vol. 71, No.
3 / Thursday, January 5, 2006 / Notices
(EPA), Nuclear Regulatory Commission Dated: December 22, 2005. 2005, notice in its entirety and includes
(NRC), and other governmental and non- William H. Gimson, appendices A, B, and C.
governmental organizations on HSE Chief Operating Officer, Centers for Disease Dated: December 29, 2005.
issues; (7) ensures updating and critical Control and Prevention (CDC).
Aaron Santa Anna,
review of the CDC/NIH Biosafety in [FR Doc. 06–58 Filed 1–4–06; 8:45 am]
Assistant General Counsel for Regulations.
Microbiological and Biomedical BILLING CODE 4160–18–M
Laboratories; and (8) serves as a World Department of Housing and Urban
Health Organization Collaborating Development
Center for Applied Biosafety Programs DEPARTMENT OF HOUSING AND [Docket No. FR–5016–N–01]
and Training. URBAN DEVELOPMENT
Public Housing Operating Fund;
Office of the Director (CAJP1). (1) [Docket No. FR–5016–N–02] Variable Coefficients for Public Housing
Serves as the principal advisor to the Operating Fund Project Expense Levels
Director, CDC, with responsibility for Public Housing Operating Fund
Variable Coefficients for Public Agency: Office of the Assistant
the CDC HSP; (2) plans, identifies, and Secretary for Public and Indian
Housing Operating Fund Project
requests required resources; directs, Housing, HUD.
Expense Levels; Correction
manages, and evaluates the operations Action: Notice.
and programs of OHS; (3) assures AGENCY: Office of the Assistant Summary: This notice provides
coordination and cooperation among Secretary for Public and Indian supplemental information to public
OHS staff; (4) provides advice and Housing, HUD. housing agencies (PHAs) and members
counsel to the CDC Director, the Chief ACTION: Notice; correction. of the public regarding HUD’s method of
Operating Officer, and other senior OD calculating public housing operating
SUMMARY: On December 28, 2005, HUD
and NC officials on workplace HSE subsidy in accordance with the Public
published a notice to provide Housing Operating Fund Program
matters; (5) assures compliance with
supplemental information to public regulation at 24 CFR part 990. Subpart
applicable federal, state, and local HSE housing agencies (PHAs) and members
laws, regulations, and policies; (6) C of the final rule describes how
of the public regarding HUD’s method of formula expenses will be calculated
develops and implements new HSE calculating public housing operating
injury/illness prevention programs under the new Operating Fund Formula.
subsidy in accordance with the Public This notice explains the computation of
indicated by surveys, incident Housing Operating Fund Program
investigations, reports of unsafe/ the project expense level (PEL), which
regulation at 24 CFR part 990. HUD is one factor in the formula expenses
unhealthful working conditions and inadvertently left out appendices A–C component of the Operating Fund
other means; (7) assures cross-cutting, from that publication. This notice Formula.
collaborative team functionality in republishes the December 28, 2005,
building and maintaining a successful Date: Effective Date: January 27, 2006.
notice in its entirety and includes the
safety program; (8) assures OHS appendices. For Further Information Contact: The
coordination with the Office of Security Office of Public and Indian Housing,
DATES: Effective Date: January 27, 2006. Real Estate Assessment Center (PIH–
and Emergency Preparedness, the FOR FURTHER INFORMATION CONTACT: The REAC), Attention: Wanda Funk,
Building and Facilities Office, and other Office of Public and Indian Housing, Department of Housing and Urban
staff and staff service offices on HSE Real Estate Assessment Center (PIH– Development, Real Estate Assessment
matters; (9) serves as Executive REAC), Attention: Wanda Funk, Center, 550 Twelfth Street, SW., Suite
Secretary for the CDC Health and Safety Department of Housing and Urban 100, Washington, DC 20410; telephone
Advisory Board; (10) serves as Executive Development, Real Estate Assessment the PIH–REAC Technical Assistance
Secretary for the CDC Health and Safety Center, 550 Twelfth Street, SW., Suite Center at (888) 245–4860 (this is a toll
Committee; (11) provides liaison with 100, Washington, DC 20410; telephone free number). Persons with hearing or
both CDC safety officers and staff, and the PIH–REAC Technical Assistance speech impairments may access this
other partners such as HHS, OSHA, Center at (888) 245–4860 (this is a toll number through TTY by calling the toll-
EPA, NRC, and other governmental and free number). Persons with hearing or free Federal Information Relay Service
non-governmental organizations on HSE speech impairments may access this at (800) 877–8339. Additional
issues; (12) when asked, consults with number through TTY by calling the toll- information is available from the PIH–
individuals and organizations nationally free Federal Information Relay Service REAC Web site at http://www.hud.gov/
and internationally on issues such as at (800) 877–8339. Additional reac/.
laboratory safety, biosafety, information is available from the PIH– Supplementary Information:
occupational health issues in the REAC Web site at http://www.hud.gov/
reac/. Purpose of the Notice
biomedical laboratory and animal care
setting, and deployment health and SUPPLEMENTARY INFORMATION: On The purpose of this notice is to
safety; (13) maintains oversight and December 28, 2005, HUD published (70 provide additional information about
support for the CDC safety committees FR 76964) a notice to provide the computation of the operating
in operational components with supplemental information to public subsidy under the revised Operating
representation, attendance, interaction housing agencies (PHAs) and members Fund Program rule. HUD published a
and collaboration, and collaboration of the public regarding HUD’s method of final rule, Revisions to the Public
with non-Atlanta health and safety calculating public housing operating Housing Operating Fund Program (79
subsidy in accordance with the Public FR 54983), in the Federal Register on
cchase on PROD1PC60 with NOTICES
officers and staff; and (14) provides an

Housing Operating Fund Program September 19, 2005, revising the
annual report on the CDC HSE and other
regulation at 24 CFR part 990. HUD Department’s Public Housing Operating
reports required or requested by CDC inadvertently left out appendices A–C Fund Program regulation at 24 CFR part
management officials, HHS, and from that publication. This correction 990 and adopting a final Operating
regulatory agencies. notice republishes the December 28, Fund Formula for determining the
VerDate Aug<31>2005 17:06 Jan 04, 2006 Jkt 208001 PO 00000 Frm 00023 Fmt 4703 Sfmt 4703 E:\FR\FM\05JAN1.SGM 05JAN1
Federal Register / Vol. 71, No. 3 / Thursday, January 5, 2006 / Notices 603
payment of operating subsidies to PHAs. called ‘‘cost adjustments.’’ There are • Occupancy Type. The occupancy
The final rule, developed through four cost adjustments and they are: type is determined by the percentage of
negotiated rulemaking conducted in (1) A national floor of $200 PUM for efficiency and one bedroom units in the
2004, became effective November 18, elderly projects and of $215 PUM for project. If there are more than 50
2005. family projects. percent efficiencies and one bedroom
The new Operating Fund Formula for (2) A national ceiling of $420 PUM for units, the project is considered senior.
calculating operating subsidy is all projects, except for projects owned All other properties are considered
comprised of three major components. by the New York City Housing family properties. When different
These three components are: eligible Authority (NYCHA), which have a projects are combined, or buildings from
unit months, formula expenses, and ceiling of $480 PUM. different projects are combined to form
formula income. The formula expense (3) When the calculated PEL is over a ‘‘new project,’’ the occupancy type
component, as described in subpart C of $325 PUM, the result is reduced by 4 will be the weighted average occupancy
the final rule, consists of the project percent, but it will not be reduced to type of the different buildings in the
expense level (PEL), the utility expense less than $325 PUM. Note: This step new project based on their number of
level, and other formula expenses (add- does not apply to NYCHA properties. units (unit weighted average).
ons). This notice provides a step-by-step (4) The reduction in the amount of • Location. The location variable is
description of the computation of the audit costs as a PUM reported for FY based on the property census tract. The
PEL. In the event that insufficient funds 2003. property is classified as within the
are available, as noted in the final rule All of the variables and the cost central city of a Metropolitan Statistical
at 24 CFR 990.210(c), HUD shall have adjustments will yield a PEL for a Area (MSA), a non-central city area of
discretion to revise, on a pro rata basis, project in year 2000 dollars. After the an MSA, or a rural area.
the amounts of operating subsidy to be PEL in year 2000 dollars is created, it • Neighborhood Poverty Rate. The
paid to PHAs. will be inflated using the HUD- neighborhood poverty rate for each
determined annual inflation factor on project is taken from the 1990 Census,
Variables and Coefficient Values
Line A7 of the form HUD–52723, using the project address to determine
In accordance with 24 CFR 990.165 of Operating Fund Calculation of the census tract. If buildings in a project
the final rule, HUD will calculate the Operating Subsidy, OMB Approval are in different census tracts, the tract
PEL for each public housing project Number 2577–0029, expires June 30, with the highest number of units
using the ten variables and associated 2006, from 2001, 2002, 2003, and 2004, determines the neighborhood poverty
coefficients from the Harvard University to arrive at the initial PEL in year 2004 rate.
Graduate School of Design Cost Model dollars. The initial PEL in 2004 dollars • Percent of Households Assisted.
(cost model). The PEL will be expressed then will be adjusted annually Although there are five categories
as a per unit per month (PUM) amount. beginning in 2005 by the HUD- within the cost model for the percentage
The coefficient for each of the ten of units within a project that are
determined local inflation factor (see 24
formula variables that determine a PEL assisted, for purposes of the PEL
CFR 990.165).
is expressed in percentage terms. The calculations for public housing, all PHA
proper coefficients applied to a Determination of Coefficients projects will be considered to be 100
particular variable for a project depend For each PEL calculation, the proper percent assisted.
on the physical, demographic, or coefficient for each variable will be • Ownership Type. The ownership
geographic characteristics of the project. determined as follows: type for all public housing projects is
Therefore, the coefficient that will be non-profit.
• Size of Project. The size of project
applied for each of the variables
is the total number of ACC units in the • Geographic. The geographic
depends upon the characteristics of the coefficient is taken from the table in
project.
project. The ten variables are listed in Appendix A that provides a coefficient
• Age of Property. The age of the
Table 1: for each area listed.
project is determined by the difference
between the Date of Full Availability The PEL Calculation Process
TABLE 1.—OPERATING SUBSIDY (DOFA) and December 31, 2000. When
VARIABLES HUD will calculate the PEL for each
different projects are combined or
project using the following steps in the
buildings from different projects are
No. Variables order presented.
combined to form a ‘‘new project,’’ the Step 1: For a given project, the proper
1 .......... Size of Project. age of the property will be the weighted coefficient for each of the ten variables
2 .......... Age of Property. average age of the different buildings in from which the cost model is
3 .......... Unit Size (Bedroom Mix). the new project based on their number constructed is determined using
4 .......... Building Type. of units (unit weighted average). Appendices A and B. The proper
5 .......... Occupancy Type. • Unit Size (Bedroom Mix). The unit coefficient to be applied for each
6 .......... Location. size of a project is determined by the
7 .......... Neighborhood Poverty Rate. variable depends on the physical,
8 .......... Percent of Households Assisted.
percentage of two, three, and four or demographic, or geographic
9 .......... Ownership Type. more bedroom units in that project. characteristics of the project.
10 ........ Geographic. • Building Type. The building type is Step 2: Sum the coefficient values
determined by the type of structure(s) identified in step 1 for the following
The coefficient values for variables that comprise the project. For example, eight variables:
one through nine are set forth in a single family home is a detached/ • Size of Project
Appendix A. The value for the tenth semi-detached building type. When • Age of Property
coefficient, Geographic, is set forth in there are different building types in one • Building Type
Appendix B. project (e.g., detached and row/ • Occupancy Type
In addition to the ten variables townhouses), the building type is • Location
described above, the PEL calculation determined by the majority of the units • Neighborhood Poverty Rate
includes the application of what are in that project. • Percent of Households Assisted
604 Federal Register / Vol. 71, No. 3 / Thursday, January 5, 2006 / Notices
• Geographic • If the result of step 7 is greater than determine the transition funding for
Step 3: Determine the coefficient $480 and the project is either owned by each PHA.
value of the Unit Size (Bedroom Mix) the NYCHA, or is NYCHA mixed Step 13: The PHA PEL for 2006 will
variable by calculating the percentage of finance rental housing, the result is be calculated by multiplying the 2004
two, three, and four or more bedroom decreased to $480. PHA PEL by the HUD inflation factors
units in the property. The percentage of Step 9: Subtract the PUM cost of the for 2005, 2006, and 2007.
two, three, and four or more bedrooms audit expenses for FY 2003 from the PHA PEL Calculation FFY 2008 and
units in the property is then multiplied result of step 8. To determine the initial After
by the applicable coefficient. PEL, the PUM audit expenses are taken
• The percentage of 2 bedroom units from Line A12 of the PHA’s 2003 form Beginning in FY 2008 and every fiscal
is multiplied by 17.61 percent, the HUD–52723, Operating Fund year thereafter, HUD will calculate a
coefficient for 2 bedroom units. Calculation of Operating Subsidy, OMB PEL for each project and fund PHA
• The percentage of 3 bedroom units Approval Number 2577–0029, expires operating subsidy on a project-by-
is multiplied by 37.65 percent, the June 30, 2006. project basis. Accordingly, beginning in
coefficient for 3 bedroom units. Step 10: Inflate the initial PEL from FY 2008, the result in step 10 will be the
• The percentage of 4 or more year 2000 dollars to 2004 dollars by PEL for each project.
bedroom units is multiplied by 48.73 multiplying the result of step 9 by the PELs for ‘‘New’’ Asset Management
percent, the coefficient for 4 bedroom local annual inflation factors for the four Projects
units. intervening years (2001, 2002, 2003 and
For purposes of asset management, in
The resulting values for each bedroom 2004) and round the result to the nearest
accordance with subpart H of 24 CFR
size are then summed. penny from the third decimal place with
part 990 of the final rule, PHAs may
Step 4: Add the totals of steps 2 and a half a penny or more rounded up (e.g.,
either combine existing developments,
3 to 520.18 percent, the formula all values between $206.005 and
divide existing developments, or
constant. $206.014, inclusive, would be rounded
combine some or all of the buildings
Step 5: Compute the exponent of the to $206.01, and all values between
from more than one existing
result of step 4. In Microsoft (MS) Excel, $206.015 and $206.024, inclusive,
development to create a new project.
the formula for determining the would be rounded to $206.02). The local
After these changes are made, HUD will
exponent is: EXP (sum of coefficients). annual inflation factors are found on
calculate a PEL for the new project and,
For example, if the result in step four is Line 7 of the HUD–52723, Operating
when applicable, for any existing
575.6 percent, in MS Excel the exponent Fund Calculation of Operating Subsidy,
developments based on the remaining
is determined by EXP (575.6 percent). OMB Approval Number 2577–0029,
buildings.
For this example, the exponent would expires June 30, 2006, forms for those
A. For each new project, the Age of
be 316.08 and it would be expressed as years. For example: assume the 2000
Property variable will be a unit
a dollar amount. PEL is $397.85 and the 2001 inflation
weighted average age of the buildings
Step 6: Multiply the result from step factor is 1.019, the 2002 inflation factor
from the different developments. To
5 by the product of one plus the is 1.023, the 2003 inflation factor is
determine the unit weighted average age
coefficient value of the Ownership Type 1.015, and the 2004 inflation factor is
of the buildings, HUD will:
variable. Because the ownership type of 1.031. (1) Calculate the age of each building
public housing is non-profit, the (1) Multiply: 1.019 times 1.023 times in days from DOFA until December 31,
product of one plus the coefficient value 1.015 times 1.031. This equals 1.090874. 2000, using a 360-day year where each
of the Ownership Type variable (i.e., (2) Multiply: $398.77 times 1.090874. month has 30 days.
non-profit adjustment) is 110 percent, or This equals 435.0078. (2) Calculate the unit days for each
1.10. This result is also expressed as a (3) Round the result to the nearest building by multiplying the number of
dollar amount. penny. This equals $435.01, which is units in each building by the age in days
Step 7: When the result of step 6 is the initial PEL in 2004 dollars. for that building.
greater than $325, the result is reduced The initial PEL in year 2004 dollars (3) Total the unit days for all
by 4 percent, but it will not be reduced then will be adjusted annually by the buildings.
to less than $325. Note: This step does HUD-determined local inflation factor (4) Divide the total unit days by the
not apply to NYCHA properties. The beginning in FY 2005. total number of units in all of the
dollar amount that results from step 7 buildings in the new project. Divide the
PHA PEL Calculation FFY 2007
represents the PEL before the floor and result by 360 and round to the nearest
ceiling cost adjustments and before the In FFY 2007, HUD will fund operating whole number.
application of the inflation factor. subsidy at the PHA level by calculating HUD will use the result as the
Step 8: Apply the following floor and a PHA’s PEL using a weighted average applicable age coefficient for that
ceiling cost adjustments, as necessary: of the PELs for each project in the PHA project in accordance with the steps
• If the result of step 7 is less than based on the number of units. described, above, and shown in
$200 and the project Occupancy Type is Accordingly, in FFY 2007, the three Appendix C. Further guidance on
identified as senior, the result is raised following steps will be added to the ten grouping projects for purpose of asset
to $200. steps described above in order to arrive management will be provided through a
• If the result of step 7 is less than at the PHA weighted average PEL. PIH notice.
$215 and the project Occupancy Type is Step 11: Multiply each project PEL by B. For each new project, the
identified as family, the result is raised the number of ACC units in that Occupancy Type variable will be a unit
to $215. property. weighted average occupancy type of the
• If the result of step 7 is greater than Step 12: Sum the amounts calculated different buildings in the project. HUD
$420 and the project is not owned by in step 11 and divide that number by will:
the NYCHA, nor is the project NYCHA the total number of units in the PHA. (1) Compute the proportion of units
mixed finance rental housing, the result The result is the weighted average 2004 that are in senior buildings by dividing
is decreased to $420. PHA PEL that HUD will use to the number of units in the senior
buildings by the total number of units executed prior to November 18, 2005, information in the Public and Indian
in the new project; the effective date of the rule. Housing Information Center (PIC)
(2) Multiply the result by the senior database. The date upon which HUD
Mixed Finance Developments
property coefficient, i.e., –5.83; and will extract the data from PIC for each
For mixed finance developments that year’s subsidy calculation will be
(3) Round the result to the nearest
have either closed prior to November provided in an annual PIH notice.
hundredth.
18, 2005, or for which the PHA has filed
HUD will use the result as the documents in accordance with 24 CFR Environmental Impact
occupancy type coefficient for the new 941.606 (as amended prior to such date),
project in accordance with the steps This notice provides operating
the operating subsidy will be funded instructions and procedures in
described, above, and shown in based on the higher of the new PEL or
Appendix C. connection with activities under 24 CFR
the former allowable expense level part 990 of the final rule, which has
Moving-to-Work PHAs under the regulation that was in effect previously been subject to a required
prior to November 18, 2005. environmental review. Accordingly,
For the PHAs that are participating in
the Moving-to-Work (MTW) Example under 24 CFR § 50.19(c)(4), this notice
Demonstration authorized under section is categorically excluded from
A step-by-step example of a project
204 of the Omnibus Consolidated environmental review under the
PEL calculation and a PHA PEL
Rescissions and Appropriations Act of calculation is set forth in Appendix C. National Environmental Policy Act of
1996, PELs will be determined in 1969 (42 U.S.C. 4321).
accordance with the steps set forth Data Used for Calculations Dated: December 9, 2005.
above. However, pursuant to 24 CFR The project characteristics that HUD Orlando J. Cabrera,
990.165(f), these PHAs may receive will use to calculate the PELs for all Assistant Secretary for Public and Indian
operating subsidy as provided in PHA properties in year 2000 dollars will Housing.
Attachment A of their MTW Agreements be based on the Development field BILLING CODE 4210–33–P
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[FR Doc. 06–59 Filed 1–4–06; 8:45 am] H. Chafee Blackstone River Valley Central Falls, RI 02863 for the following
BILLING CODE 4210–33–C National Heritage Corridor Commission reasons:
will be held on Thursday, February 23, 1. Approval of Minutes
2006. 2. Chairman’s Report
The Commission was established 3. Executive Director’s Report
DEPARTMENT OF THE INTERIOR pursuant to Public Law 99–647. The 4. Financial Budget
purpose of the Commission is to assist 5. Public Input
Office of the Secretary federal, state and local authorities in the It is anticipated that about twenty-five
Blackstone River Valley National development and implementation of an people will be able to attend the session
integrated resource management plan in addition to the Commission
Heritage Corridor Commission: Notice

of Meeting for those lands and waters within the members.
Corridor. Interested persons may make oral or
Notice is hereby given in accordance The meeting will convene on written presentations to the Commission
with Section 552b of Title 5, United February 23, 2006 at 7 p.m. at Central or file written statements. Such requests
States Code, that a meeting of the John Falls Town Hall, 580 Broad Street, should be made prior to the meeting to:
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Notice: Public and Indian Housing: Public Housing Operating Fund Program Project Expense Levels Computation Correction

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602 Federal Register / Vol. 71, No.

3 / Thursday, January 5, 2006 / Notices

officers and staff; and (14) provides an

Heritage Corridor Commission: Notice

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