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Wednesday, January 26, 2011

Public Housing: Fact Sheet on the Operating Fund Formula

Maggie McCarty
Specialist in Housing Policy

The local public housing authorities (PHAs) that administer the federal public housing program began receiving their annual federal operating subsidies under a new formula in January 2007. As a result of this formula change, some PHAs were eligible for an increase in their eligibility for funding and others were eligible for a decrease. Both the increases and the decreases were phased in (over two and five years, respectively) and PHAs that faced declines were eligible to limit their losses by adopting management reforms—which were also a part of the new operating fund requirements—earlier than required.

Since the formula is only used to determine eligibility for funding, the amount that a PHA qualifies for under the formula (whether it is an increase or a decrease) will be reduced if Congress appropriates less money than is necessary to fund all agencies at 100% of their eligibility, which it has done in the past.

Date of Report: January 7, 2011
Number of Pages: 10
Order Number: RS22557
Price: $29.95

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