PIH Notice 2012-27: HUD Publishes Notice on Operating Reserve Offset Hardship Adjustments

 

Summary:  On June 8, HUD issued PIH 2012-27 announcing the availability of set-aside funds for PHAs that experienced a financial hardship to the public housing operating subsidy allocation adjustment.  The FY 2012 Consolidated Appropriations Act allowed the HUD Secretary to set aside up to $20 million from the Operating Fund appropriation “to provide assistance to any [PHA] who encounters hardship as a direct result of an excess reserve offset.”  In order to qualify for these funds, a PHA must have had their CY 2012 subsidy reduced as a result of the offset and HUD must determine that the PHA’s operating reserves are less than the minimum level of operating reserves, defined as the equivalent of six months’ worth of operating expenses for agencies with fewer than 250 public housing units or four months’ worth of expenses for PHAs with 250 or more units.  

 

HUD will email all agencies with FASS-approved financial statements to notify them of their eligibility to receive set-aside funding.  In addition, a tool with calculations for all PHAs will be posted online at http://portal.hud.gov/hudportal/HUD?src=/program_offices/public_indian_housing/programs/ph/am/of/opfnd2012/allocationadjustment.   Eligible PHAs must then send an email indicating that the PHA received an allocation adjustment and is experiencing financial hardship directly related to adjustment and provide a narrative description of that financial hardship to 2012setaside@hud.gov, with a copy to their local Field Office Director, by June 29.  The description should provide sufficient detail to establish that a hardship exists and that the hardship is directly related to the allocation adjustment that the PHA received.  Agencies that have been designated as troubled must follow additional procedures, as outlined in the notice. HUD will notify each applicant of their eligibility and award amount by July 13. 

 

Date of Publication:  June 8, 2012

 

View the notice here as well as three related attachments:  Attachment A, Attachment B1, and Attachment B2

 

NAHRO's article on the notice is available at: HUD Publishes Notice on Operating Reserve Offset Hardship Adjustments