HUD-52723 Operating Fund Calculation of Operating Subsidy

U.S. Department of Housing and
Urban Development
Office of Public and Indian Housing

Operating Fund
Calculation of Operating Subsidy
PHA-Owned Rental Housing

OMB Approval No. 2577-0029 (exp.10/31/2008)
Public Reporting Burden for this collection of information is estimated to average .75 hours per response, including the time for reviewing instructions, searching existing data
sources, gathering and maintaining the data needed, and completing and reviewing the collection of information. This agency may not collect this information, and you are not
required to complete this form, unless it displays a currently valid OMB control number. This information is required by Section 9(a) of the U.S. Housing Act of 1937, as amended,
and by 24 CFR Part 990 HUD regulations. HUD makes payments for the operation and maintenance of low-income housing projects to PHAs. The Operating Fund determines the
amount of operating subsidy to be paid to PHAs. PHAs provide information on the Project Expense Level (PEL), Utilities Expense Level (UEL), Other Formula Expenses (Add-ons)
and Formula Income – the major Operating Fund components. HUD reviews the information to determine each PHA’s Formula Amount and the funds to be obligated for the Funding
Period to each PHA based on the appropriation by Congress. HUD also uses the information as the basis for requesting annual appropriations from Congress. Responses to the
collection of information are required to obtain a benefit. The information requested does not lend itself to confidentiality.

Section 1
1. Name and Address of Public Housing Agency:

2. Funding Period: 1/1/___ to 12/31/___
3. Type of Submission:
Original
Revision No. _____

4. ACC Number:

5. Fiscal Year End:
12/31

3/31

6. Operating Fund Project Number:
6/30

7. DUNS Number:

9/30

HUD Use Only
9. Financial Analyst:

8. ROFO Code:

Section 2
Calculation of ACC Units for the 12-month period from July 1 to June 30 that is prior to the first day of the Funding Period:
ACC Units on 7/1/__

Line
No.

+

Units Added to ACC

Category

-

Units Deleted from ACC

Column A
Unit Months

=

Column B
Eligible Unit Months (EUMs)

ACC Units on 6/30/__
Column C
Resident Participation Unit
Months

Categorization of Unit Months:
Occupied Unit Months
01
Occupied dwelling units – by public
housing eligible family under lease
02
Occupied dwelling units – by PHA
employee, police officer, or other security
personnel who is not otherwise eligible for
public housing
03
New units – eligible to receive subsidy
during the funding period but not included
on Lines 01, 02, or 05-13 of this section
04
New units – eligible to receive subsidy
from 10/1 to 12/31 of previous funding
period but not included on previous
Calculation of Operating Subsidy
Vacant Unit Months
05
Units undergoing modernization
06
Special use units
06a Units on Line 02 that are occupied by
police officers and that also qualify as
special use units
07
Units vacant due to litigation
08
Units vacant due to disasters
09
Units vacant due to casualty losses
Units vacant due to changing market
10
conditions
11
Units vacant and not categorized above
12
13

Units eligible for asset repositioning fee
and still on ACC (occupied or vacant)
All other ACC units not categorized above

Previous edition is obsolete

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form HUD-52723 (08/2005)

Operating Fund Project Number:
Calculations Based on Unit Months:
14
Limited vacancies
Total Unit Months
15
16
Units eligible for funding for resident
participation activities (Line 15C divided
by 12)
Special Provision for Calculation of Utilities Expense Level:
17
Unit months for which actual consumption
is included on Line 01 of form HUD52722 and that were removed from Lines
01 through 11, above, because of
removal from inventory, including
eligibility for the asset repositioning fee

Section 3
Line
Description
No.
Part A. Formula Expenses
Project Expense Level (PEL)
01
PUM project expense level (PEL)
02
Inflation factor
03
PUM inflated PEL (Part A, Line 01 times Line 02)
04
PEL (Part A, Line 03 times Section 2, Line 15, Column B)
Utilities Expense Level (UEL)
05
PUM utilities expense level (UEL) (from Line 26 of form HUD-52722)
06
UEL (Part A, Line 05 times Section 2, Line 15, Column B)
Add-Ons
07
Self-sufficiency
08
Energy loan amortization
09
Payment in lieu of taxes (PILOT)
10
Cost of independent audit
11
Funding for resident participation activities
12
Asset management fee
13
Information technology fee
14
Asset repositioning fee
15
Costs attributable to changes in federal law, regulation, or economy
Total Add-Ons (Sum of Part A, Lines 07 through 15)
16
Total Formula Expenses (Part A, Line 04 plus Line 06 plus Line 16)
17
Part B. Formula Income
01
PUM formula income
02
PUM change in utility allowances
03
PUM adjusted formula income (Sum of Part B, Lines 01 and 02)
Total Formula Income (Part B, Line 03 times Section 2, Line 15, Column B)
04
Part C. Other Formula Provisions
01
Moving-to-Work (MTW)
02
Transition funding
03
Other
Total Other Formula Provisions (Sum of Part C, Lines 01 through 03)
04
Part D. Calculation of Formula Amount
01
Formula calculation (Part A, Line 17 minus Part B, Line 04 plus Part C, Line 04)
02
Cost of independent audit (same as Part A, Line 10)
03
Formula amount (greater of Part D, Lines 01 or 02)
Part E. Calculation of Operating Subsidy (HUD Use Only)
01
Formula amount (same as Part D, Line 03)
02
Adjustment due to availability of funds
03
HUD discretionary adjustments
Funds Obligated for Period (Part E, Line 01 minus Line 02 minus Line 03)
04
Appropriation symbol(s):

Previous edition is obsolete

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Requested by PHA

HUD Modifications

form HUD-52723 (08/2005)

Operating Fund Project Number:

Section 4
Remarks (provide section, part and line numbers):

Section 5
Certifications:
In accordance with 24 CFR 990.215, I hereby certify that _______________________ Housing Agency is in compliance with the annual
income reexamination requirements and that rents and utility allowance calculations have been or will be adjusted in accordance with current
HUD requirements and regulations.
In accordance with 24 CFR 990.190(f), I hereby certify that _______________________ Housing Agency has fewer than 250 units and
has elected to transition to asset management and therefore is eligible to receive an asset management fee.
I hereby certify that all the information stated herein, as well as any information provided in the accompaniment herewith, is true and
accurate. Warning: HUD will prosecute false claims and statements. Conviction may result in criminal and/or civil penalties. (18 U.S.C.
1001, 1010, 1012; 31 U.S.C. 3729, 3802)
Signature of Authorized PHA Representative & Date:

Signature of Authorized HUD Representative & Date:

X

X

Previous edition is obsolete

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form HUD-52723 (08/2005)

Instructions

Units Deleted from ACC. Enter units that were removed from ACC
between July 1 and June 30 prior to the first day of the funding period.

This form is used by Public Housing Agencies (PHAs) to calculate eligibility
for operating subsidy from the Operating Fund, in accordance with
regulations at 24 CFR Part 990.

ACC Units on 6/30/__. Enter the total ACC units as of June 30 of the 12month period from July 1 to June 30 prior to the first day of the funding
period. (Note: ACC Units on 6/30/__ should equal ACC units on 7/1/__
plus units added to ACC minus units deleted from ACC. Also, ACC units
on 6/30/__ should equal Line 15 of Column A, divided by 12 months,
unless units have been added to or deleted from ACC.)

It is used for PHA-owned rental public housing developments and PHA
units in mixed housing developments when operating subsidy is requested
for such developments under the Operating Fund Program.
It is not used for Turnkey III and Mutual Help Homeownership Opportunity
Programs, Sections 23 and 10(c) Leased Housing Programs, or the
Housing Choice Vouchers (Section 8) Program.

Column A, Unit Months: This column is used to determine the asset
management fee in Section 3, Part A, Line 12 and the information
technology fee in Section 3, Part A, Line 13.

Unless directed otherwise, a PHA that is eligible to receive operating
subsidy will send this form to its local field office. This form must be
submitted for each period in which operating subsidy is requested pursuant
to 24 CFR 990.200. A separate form must be prepared for each project or
group of projects under a separate Annual Contributions Contract (ACC).

Notes:
•
Unit months are the number of months within a period that a unit met
the criteria for one of the categories below.
•
Once a unit becomes eligible to receive an asset repositioning fee, it
should not be included in the unit months on Lines 01 through 11 of
this section pursuant to 24 CFR 990.130(b) and .190(h).

When a PHA requests operating subsidy solely to cover the cost of an
independent audit, only Section 1 and Section 3, Part D, Lines 02 and 03
need be completed.

Occupied Unit Months:

_______________________________________________
SECTION 1

Line 01: Occupied dwelling units – by public housing eligible family
under lease. Enter the number of unit months the PHA had units occupied
by public housing-eligible families under a lease pursuant to 24 CFR
990.140.

1. Name and Address of Public Housing Agency. Enter the name and
address of the PHA.

Line 02: Occupied dwelling units – by PHA employee, police officer,
or other security personnel who is not otherwise eligible for public
housing. Enter the number of unit months the PHA had units occupied by
PHA employees, police officers and other security personnel who are not
otherwise eligible for public housing and therefore are not included on Line
01 of this section pursuant to 24 CFR 990.190(e).

2. Funding Period 1/1/__ to 12/31/__. All PHAs will be funded from the
Operating Fund Program for the same period, regardless of PHA fiscal
year. In both blanks, enter the calendar year for which this form is
submitted. All references throughout this form to funding period pertain to
this period.
3. Type of Submission. If this is the first submission to HUD for this
funding period, enter an “X” in the Original box. For all subsequent
submissions to HUD for this funding period, enter an “X” in the Revision
box and enter the revision number.

Line 03: New units – eligible to receive subsidy during the funding
period but not included on Lines 01, 02 or 05-13 of this section. Enter
the number of unit months for which new units are eligible to receive
operating subsidy during the funding period pursuant to 24 CFR
990.155(a)(1) and (b)(1) and are not included on Lines 01, 02 or 05-13 of
this section.

4. ACC Number. Enter the number of the Annual Contributions Contract
(ACC) covering the projects for which this form is being submitted.

Line 04: New units – eligible to receive subsidy from 10/1 to 12/31 of
previous funding period but not included on previous Calculation of
Operating Subsidy. Enter the number of unit months for which new units
were eligible to receive operating subsidy from 10/1 to 12/31 of the
previous funding period pursuant to 24 CFR 990.155(a)(1) and (b)(1) but
were not included on the previous Calculation of Operating Subsidy, form
HUD-52723.

5. Fiscal Year End. Enter an “X” in the box that corresponds to the
ending date of the PHA’s fiscal year.
6. Operating Fund Project Number. Enter the Operating Fund Project
Number for which this form is being submitted.
7. DUNS Number. Enter the PHA’s Dunn & Bradstreet Universal
Numbering System identification number.

Vacant Unit Months:

8. ROFO Code. Enter the region and field office code for the field office
that has jurisdiction over the PHA (HUD Use Only).

Line 05: Units undergoing modernization. Enter the number of unit
months the PHA had HUD-approved vacant units undergoing
modernization pursuant to 24 CFR 990.145(a)(1).

9. Financial Analyst. Enter the name of the Financial Analyst at the field
office who reviewed this submission (HUD Use Only).

Line 06: Special use units. Enter the number of unit months the PHA
had HUD-approved vacant units used for resident services, resident
organization offices, and related activities such as self-sufficiency and anticrime initiatives pursuant to 24 CFR 990.145(a)(2).

SECTION 2
Notes:
•
Unit and unit month information should be only for public housing
units under an ACC.
•
All unit and unit month information will be for the 12-month period
from July 1 to June 30 prior to the first day of the funding period,
pursuant to 24 CFR 990.135(a). (Exceptions are made for new units,
entered on Lines 03 and 04, and for units eligible for an asset
repositioning fee).

Line 07: Units vacant due to litigation. Enter the number of unit months
the PHA had HUD-approved vacant units due to litigation pursuant to 24
CFR 990.145(b)(1).
Line 08: Units vacant due to disasters. Enter the number of unit
months the PHA had HUD-approved vacant units due to disasters pursuant
to 24 CFR 990.145(b)(2).
Line 09: Units vacant due to casualty losses. Enter the number of unit
months the PHA had HUD-approved vacant units due to casualty losses
pursuant to 24 CFR 990.145(b)(3).

Calculation of ACC Units for the 12-month period from July 1 to June
30 that is prior to the first day of the funding period.
ACC Units on 7/1/__. Enter the total ACC units as of July 1 of the 12month period from July 1 to June 30 prior to the first day of the funding
period.

Line 10: Units vacant due to changing market conditions. Enter the
number of unit months the PHA had vacant units due to changing market
conditions for which the PHA appealed to receive operating subsidy and
received HUD approval pursuant to 24 CFR 990.145(c) and .245(d).

Units Added to ACC. Enter units that were added to ACC between July 1
and June 30 prior to the first day of the funding period.

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form HUD-52723 (08/2005)

Line 11: Units vacant and not categorized above. Enter the number of
unit months the PHA had vacant units not otherwise eligible for subsidy
(and therefore were not included on Lines 05 through 10 of this section)
pursuant to 24 CFR 990.130(a).
Other ACC Unit Months:
Line 12: Units eligible for asset repositioning fee and still on ACC
(occupied or vacant). Enter the number of unit months the PHA had units
still under ACC that were eligible to receive an asset repositioning fee (and
therefore were not included on Lines 01 through 11 of this section)
pursuant to 24 CFR 990.130(b) and .190(h).
Line 13: All other ACC units not categorized above. Enter the number
of unit months the PHA had units under ACC that were not included on
Lines 01 through 12 of this section (e.g., units were occupied by over
income families; units were used as temporary office space; units
previously received an asset repositioning fee and although the fee
expired, the units are still under ACC since the demolition or disposition
has not been completed).

Line 16: Units eligible for funding for resident participation activities.
Divide the total on Line 15 by 12 months and round to the nearest whole
number to determine the number of units eligible for the funding for
resident participation activities add-on.
___________________________________________________________

SECTION 3
Part A. Formula Expenses
Note. Part A, Lines 01, 03, and 05 must be per unit per month (PUM)
amounts, rounded to the nearest two (2) decimal places. Line 02 will be
provided by HUD. Lines 04 and 06 through 17 must be in whole dollars.
Project Expense Level (PEL):
Line 01: PUM PEL. Enter the Project Expense Level (PEL) provided by
HUD as calculated pursuant to 24 CFR 990.165.
Line 02: Inflation factor. Enter the applicable inflation factor provided by
HUD as determined pursuant to 24 CFR 990.165(d).

Calculations Based on Unit Months:

Line 03: PUM inflated PEL. Multiply Line 01 by Line 02 and enter the
result.

Line 15: Total Unit Months. Enter the sum of Lines 01 through 13 of
Column A.

Line 04: PEL. Multiply Line 03 by the amount in Section 2, Line 15,
Column B.

Column B, Eligible Unit Months (EUMs): This column is used to
determine the PEL on Part A, Line 04; the UEL on Part A, Line 06; and the
Total Formula Income on Part B, Line 04 of Section 3.

Utilities Expense Level (UEL):

Line 01 and Lines 03 through 10 (excluding 06a). Enter the same
amount as on the corresponding lines in Column A.
Line 06a: Units on Line 02 that are occupied by police officers and
that also qualify as special use units. Enter the number of unit months
that the PHA had units that met the following two conditions:
•
The units were occupied by police officers not otherwise eligible for
public housing and therefore were included in unit months on Line 02
of Column A; and
•
The units were HUD-approved as special use units.
Calculations Based on Unit Months:
Line 14: Limited vacancies. Pursuant to 24 CFR 990.150, PHAs with
over 100 units should enter the lesser of:
•
3 percent of Line 15 of Column A; or
•
Line 11 of Column A.
•
PHAs with 100 or fewer units should enter the lesser of:
•
60 unit months; or
•
Line 11 of Column A.
Line 15: Total Unit Months. Enter the sum of Line 01, Lines 03 through
10 (including 6a), and Line 14 of Column B.
Special Provision for Calculation of Utilities Expense Level:
Line 17: Unit months for which actual consumption is included on
Line 01 of form HUD-52722 and that were removed from Lines 01
through 11 because of removal from inventory, including eligibility for
the asset repositioning fee. Enter the number of unit months for which
actual consumption is included on Line 01 of form HUD-52722 and that
were removed from unit months on Lines 01 through 11 because of
eligibility for the asset repositioning fee. For more information, see
instructions to the form HUD-52722.

Line 05: PUM UEL. Enter the amount from Line 26 of form HUD-52722,
Calculation of Utilities Expense Level.
Line 06: UEL. Multiply Line 05 by the amount in Section 2, Line 15,
Column B.
Add-Ons:
Line 07: Self-sufficiency. Enter the reasonable cost of self-sufficiency
program coordinator(s) and associated costs pursuant to 24 CFR
990.190(a).
Line 08: Energy loan amortization. Enter the amount of principal and
interest payments for energy conservation measures pursuant to 24 CFR
990.190(b).
Line 09: Payment in lieu of taxes (PILOT). Enter the amount paid for
PILOT pursuant to 24 CFR 990.190(c).
Line 10: Cost of independent audits. Enter the most recent actual audit
costs of the Operating Fund Program pursuant to 24 CFR 990.190(d).
Line 11: Funding for resident participation activities. Multiply $25
times the amount in Section 2, Line 16, Column C, and enter the result
pursuant to 24 CFR 990.190(e).
Line 12: Asset management fee. Pursuant to 24 CFR 990.190(f), enter
the following:
•
If the PHA has at least 250 units, multiply $4 times the amount in
Section 2, Line 15, Column A.
•
If the PHA has fewer than 250 units and has elected to transition to
asset management, multiply $2 times the amount in Section 2, Line
15, Column A.
Line 13: Information technology fee. Multiply $2 times the amount in
Section 2, Line 15, Column A, pursuant to 24 CFR 990.190(g).

Column C, Resident Participation Unit Months: This column is used to
determine the funding for resident participation activities in Part A, Line 11
of Section 3.

Line 14: Asset repositioning fee. Enter the amount of the asset
repositioning fee for eligible units calculated pursuant to 24 CFR
990.190(h).

Lines 01 through 04. Enter the same amount as on the corresponding
lines in Column A.

Line 15: Costs attributable to changes in federal Law, regulation, or
economy. Leave blank unless specific instructions are provided by HUD
pursuant to 24 CFR 990.190(i).

Calculations Based on Unit Months:
Line 16: Total Add-Ons. Enter the sum of Lines 07 through 15.
Line 15: Total Unit Months. Enter the sum of Lines 01 through 04 of
Column C.

Previous edition is obsolete

Line 17: Total Formula Expenses. Enter the sum of Line 04 plus 06 plus
16.

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form HUD-52723 (08/2005)

Part B. Formula Income
Note. Part B, Lines 01 through 03 must be per unit per month (PUM)
amounts, rounded to the nearest two (2) decimal places. Line 04 must be
in whole dollars.
Line 01: PUM formula income. Enter the 2004 formula income PUM
provided by HUD as calculated pursuant to 24 CFR 990.195.
Line 02: PUM change in utility allowances. If the PHA has tenant-paid
utilities, enter the increase or decrease in utility allowances pursuant to 24
CFR 990.170(e). A decrease must be reflected as a positive number. An
increase must be reflected as a negative number and entered in brackets.
Line 03: PUM adjusted formula income. Enter the sum of Line 01 plus
02.
Line 04: Total Formula Income. Multiply Line 03 by the amount in
Section 2, Line 15, Column B.
Part C. Other Formula Provisions
Note. All of Part C must be in whole dollars.
Line 01: Moving-to-Work (MTW). If the PHA has an MTW agreement, it
may enter an amount on this line if the amount would not be accurately
classified on any other lines of this form in accordance with its MTW
agreement and applicable HUD notices and guidance.
Line 02: Transition funding. Enter the transition funding amount
provided by HUD as calculated pursuant to 24 CFR 990.230 and .235.
Line 03: Other. Leave blank unless specific instructions are provided by
HUD.
Line 04: Total Other Formula Provisions. Enter the sum of Lines 01
through 03.
Part D. Calculation of Formula Amount
Note. All of Part D must be in whole dollars.
Line 01: Formula calculation. Enter the total of Part A, Line 17 minus
Part B, Line 04 plus Part C, Line 04.
Line 02: Cost of independent audit. Enter the same amount as
previously entered on Part A, Line 10. If the PHA is requesting operating
subsidy solely to cover the cost of an independent audit, see the
instructions for Part A, Line 10.
Line 03: Formula amount. Enter the greater of Lines 01 or 02.
Part E. Calculation of Operating Subsidy (HUD Use Only)
Line 01: Formula amount. HUD will enter the amount from Part D, Line
03.
Line 02: Adjustment due to availability of funds. If necessary, HUD
will enter an adjustment to the formula amount on Line 01 based on the
annual appropriation for the Operating Fund Program.
Line 03: HUD discretionary adjustments. If necessary, HUD will enter
discretionary adjustments that will be effective during the funding period.
Line 04: Funds Obligated for Period. HUD will enter the result of Line
01 minus 02 minus 03. HUD will also enter the appropriation symbol from
which this subsidy will be paid. If this amount is being paid from more than
one appropriation, HUD will enter the dollar amount paid from each
appropriation.

Previous edition is obsolete

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form HUD-52723 (08/2005)