e-CFR Navigation Aids Advanced Search — Boolean
Related Resources |
## Electronic Code of Federal Regulations
Title 24: Housing and Urban Development
## Appendix B to Part 1000—IHBG Block Grant Formula Mechanisms1. The first step in running the Indian Housing Block Grant (IHBG) formula is to determine the total amount available for allocation in the current Fiscal Year (FY). ALLOCAMT = APPROP + ADJ1 + ADJ2 + CARRYOVER. Where: ALLOCAMT = amount available for allocation under the formula. APPROP = current FY appropriation for the IHBG program less amounts in the Appropriations Act mandated for purposes other than the formula allocation. ADJ1= net amount, if any, made available as a result of corrections for over-or under allocations in prior FYs. ADJ2 = amount, if any, made available under §1000.536. CARRYOVER = amounts, if any, made available because tribes voluntarily returned, or did not accept, the amounts allocated to them in prior FYs. 2. If there is carryover as defined in §1000.329, the amount of carryover up to $3 million, is then held aside for allocation under the minimum total grant provisions of the formula (see Step 10), then: MGHOLD = amount set-aside for allocation under minimum total grant provision. If CARRYOVER = 0, MGHOLD = 0. If CARRYOVER > 0 and CARRYOVER < = $3 million, MGHOLD = CARRYOVER. If CARRYOVER > $3 million, MGHOLD = $3 million. 3. The FCAS component is calculated first. FCAS consists of two parts, Operating Subsidy (OPSUB) and Modernization (MOD), such that: FCAS = OPSUB + MOD. a. OPSUB is calculated in two steps, as follows: (i) First, the number of Low-Rent, Section 8 and homeownership units are multiplied by the applicable national per unit subsidy (§1000.302 National Per Unit Subsidy). The amounts are summed to create an initial calculation of the Operating Subsidy component. OPSUB1 = [LR * LRSUB] + [(MH + TK) * HOSUB] + [S8 * S8SUB]. Where: OPSUB1 = initial calculation of Operating Subsidy component. LR = number of Low-Rent units. LRSUB = national per unit subsidy for Low-Rent units ($2,440 * INF). INF = adjustment for inflation since 1995, as determined by the Consumer Price Index for housing. MH + TK = number of Mutual Help and Turnkey III units. HOSUB = national per unit subsidy for Homeownership units ($528 * INF). S8 = number of Section 8 units. S8SUB = national per unit subsidy for Section 8 units = ($3,625 * INF). (ii) The initial Operating Subsidy component amount is then adjusted for local area costs, using an adjustment factor called the AELFMR. The AELFMR factor is calculated for each tribe in three steps. First, an AEL factor is calculated by dividing the tribe's Allowable Expense Level (AEL), a historic per-unit measure of operating cost, by the national weighted average AEL (see §1000.302 defining Allowable Expense Level) AEL FACTOR = AEL/NAEL. Where: AEL = local Allowable Expense Level. NAEL = national weighted average for AEL, where the weight is a tribe's initial calculation of operating subsidy. Second, an FMR factor is calculated by dividing the tribe's Fair Market Rent amount (FMR), an area-specific index published annually by HUD (see §1000.302 Fair Market Rent factor), by the national weighted average FMR. FMR FACTOR = FMR/NFMR. Where: FMR= local Fair Market Rent. NFMR = national weighted average for FMR, where the weight is a tribe's initial calculation of operating subsidy. Third, an AELFMR factor is created by assigning each tribe the greater of its AEL or FMR factor, and dividing that figure by the national weighted average AELFMR. In all cases, when the national average figure is calculated, tribes are weighted by the amount of their initial operating subsidy as calculated in 3(a)(i) above. (See §1000.320). AELFMRFACTOR = final local area cost adjustment factor (AELFACTOR or FMRFACTOR)/NAELFMR. Where: NAELFMR = national weighted average for greater of AEL Factor or FMR factor, where weight is a tribe's initial calculation of operating subsidy Finally, the AELFMR factor is used to adjust the initial operating subsidy calculation for differences in local area costs. OPSUB = OPSUB1 * AELFMRFACTOR. Where: OPSUB = Operating Subsidy component after adjustment for local cost differences. b. The modernization component, MOD, is calculated by two different methods, depending on whether the tribe had an Indian housing authority (IHA) that owned or operated more than 250 public housing units on October 1, 1997. (i) MOD1 is calculated for all tribes and considers the number of Low-Rent, and Mutual Help and Turnkey III FCAS units. Each of these is adjusted by the national per-unit modernization subsidy MOD1 = [LR + MH + TK] * MODPU. Where: LR = number of Low-Rent units. MH = number of Mutual Help units. TK = number of Turnkey III units. MODPU = national per-unit amount for modernization in 1996 adjusted for inflation ($1,974 * INF). INF = adjustment for inflation since 1995, as determined by the Consumer Price Index for housing. (ii) MODAVG is calculated only for tribes that had an IHA that owned or operated fewer than 250 public housing units on October 1, 1997, as the annual average amount they received for FYs 1992 through 1997 under the assistance program authorized by section 14 of the 1937 Act (not including emergency assistance). If this alternative calculation is greater than the amount calculated in (i), it is used to calculate the tribe's modernization component. MODAVG = Average (FY 1992 to FY 1997) amount received by Section 14 of the 1937 Act. If MODAVG > MOD1, MOD1 = MODAVG. c. The modernization calculation is adjusted for local area costs: MOD = MOD1 * (TDC/NTDC). Where: TDC = Local Total Development Costs defined in §1000.302. NTDC = weighted national average for TDC, where the weight is the initial calculation of modernization amount of tribe with CAS. 4. Now that calculation for FCAS is complete, the amount allocated using the need component of the formula can be determined: NEEDALLOCAMT = ALLOCAMT − MGHOLD − NATCAS. Where: NEEDALLOCAMT = amount allocated using the need component of the formula. ALLOCAMT = amount available for allocation under the formula. MGHOLD = amount held for allocation under minimum total grant provision. NATCAS = national summation of FCAS allocation for all tribes. 5. The first step in calculating needs is identifying weighted needs variables and adjusting for local area cost differences. a. The basic needs calculation uses seven weighted criteria based on population and housing data in a tribe's Formula Area or share of Formula Area if Formula Areas overlap (see §1000.302 Formula Area and §1000.326) to allocate the funds available for the needs component. The person count variable is adjusted for statistically significant undercounts for reservations, trust lands and remote Alaska and for changes in population since the latest Decennial Census. PERADJ = PER * UCFACTOR * POPCHGFACTOR. Where: PER = American Indian and Alaskan Native (AIAN) persons as reported in the most recent Decennial Census. UCFACTOR= 1+ the percentage undercount identified by the Census by type of land (in 2010 1.0488 for reservation and trust lands only and assumed also to apply to remote Alaska). POPCHGFACTOR = the ratio of the most recent AIAN Census population estimate for county to the AIAN count for county from the Decennial Census. The Population Cap provision in §1000.302 Formula Area (5) is then applied. Needs data are capped if AIAN population counts exceed twice tribal enrollment unless a tribe can demonstrate that it serves more than twice as many non-tribal members as tribal members, in which case the cap is adjusted upward. POPCAPTEST=1 if PERADJ > TEmultiplier * TE If POPCAPTEST=1, (tribes subject to Population Cap) then: PER = TEmultiplier * TE POPCAPADJF = PER/PERADJ For tribes NOT subject to Population Cap, PER = PERADJ and POPCAPADJF = 1. Where: POPCAPTEST = an indicator showing whether a tribe's needs data must be adjusted downward because its Formula Area population is disproportionally large relative to tribe's enrollment, TEmultiplier = 2, or a larger factor if justified by tribe on annual basis. TE = Tribal enrollment. POPCAPADJF = factor used to adjust household needs variables. An initial calculation of the needs component is then calculated by determining each tribe's share of national totals on each variable, and applying weights to the variables as specified in regulation. BASENEED = [(0.11 * (PER)/NPER) + (0.13 * HHLE30/NHHLE30) + (0.07 * HH30T50/NHH30T50) + (0.07 * HH50T80/NHH50T80) + (0.25 * OCRPR/NOCRPR) + (0.22 * SCBTOT/NSCBTOT) + (0.15 * HOUSHOR/NHOUSHOR)] * NEEDALLOCAMT. Where: PER = count of AIAN persons after adjustments. NPER = national total of PER. HHLE30 = count of AIAN households less than 30% of formula median income multiplied by POPCAPADJF. NHHLE30 = national total of HHLE30. HH30T50 = count of AIAN households 30% to 50% of formula median income multiplied by POPCAPADJF. NHH30T50 = national total of HH30T50. HH50T80 = count of AIAN households 50% to 80% of formula median income multiplied by POPCAPADJF. NHH50T80 = national total of HH50T80. OCRPR = count of AIAN households crowded or without complete kitchen or plumbing multiplied by POPCAPADJF. NOCRPR = national total of OCRPR. SCBTOT = count of AIAN households paying more than 50% of their income for housing multiplied by POPCAPADJF. NSCBTOT = national total SCBTOT. HOUSHOR = a measure of housing shortage calculated as (HHLE30 + HH30T50 + HH50T80)—(LR + MH + TKIII) NHOUSHOR = national total of HOUSHOR. NEEDALLOCAMT = amount allocated using the need component of the formula. b. The basic needs calculation is adjusted to reflect differences in local area costs. NEED = BASENEED * (TDC/NATDC). Where: TDC = Local Total Development Costs defined in §1000.302. NATDC = average for TDC for all tribes weighted using BASENEED. 6. The need allocation computed above is adjusted to take into account the minimum needs provision. Tribes allocated less than $200,000 under the FCAS component of the IHBG formula and that certify the presence of any households at or below 80 percent of median income in their Indian Housing Plan are allocated an additional amount so their needs allocation equals 0.007826 percent of the available appropriations for that FY after set-asides. MINNEED = APPROP * 0.00007826. Where: APPROP = current FY appropriation for the IHBG program less amounts in the Appropriations Act mandated for purposes other than the formula allocation. If in the first need computation, a qualified tribe is allocated less than the minimum needs funding level, its need allocation will go up. Other tribes whose needs allocations are greater than the minimum needs amount will have their allocations adjusted downward to keep the total allocation within available funds: If NEED < MINNEED and FCAS < $200,000 and income-based need has been identified in a tribe's IHP, then NEED1 = MINNEED. If NEED > = MINNEED, then NEED1 = NEED1 − {UNDERMIN$ * [(NEED1 − MINNEED)/OVERMIN$]}. Where: MINNEED = minimum needs amount. UNDERMIN$ = for all tribes qualifying for an increase under the minimum needs provision, sum of the differences between MINNEED and NEED1. OVERMIN$ = for all tribes with needs allocations larger than the minimum needs amount, the sum of the difference between NEED1 and MINNEED. 7. Whenever a new data source (see §1000.331) is first introduced, provision is made to moderate extreme impacts through phase down adjustments. Tribes whose allocation under the need component decrease by more than ten percent in the first year of introduction will have that decrease moderated by subsequent adjustments, as required to prevent a drop of more than ten percent per year in the tribes' needs allocation attributable solely to the introduction of the new data source. A phase down adjustment schedule is calculated, containing adjustment amounts (PDADJn) for the first and all subsequent FYs, based on the amount allocated to a tribe under the need component in the FY prior to the introduction of the new data source using the old data source. That is, If NEED1NewDS < 0.9 * NEED1OldDS, then a tribe qualifies for a phase down adjustment (PDADJ) (see §1000.331(c)). PDADJn = (((0.9n) * NEED1OldDS)—NEED1NewDS), where n = 1 to ∞ provided PDADJn > 0 for at least one tribe. Where: NEED1NewDS = the amount the tribe would have received in the FY prior to the introduction of the new data source had the new data source been used to determine their need component in that FY. NEED1OldDS = the amount a tribe actually received in the FY prior to the introduction of the new data source based on the old data source. PDADJn = the size of the adjustment that qualifying tribes will receive in each year n, where the n represents the number of years elapsed since the introduction of the new data source and is equal to one in the first year. After allocation adjustments are made under §1000.331 for a FY, the needs allocation of an Indian tribe whose needs allocation increased as a result of the introduction of a new data source shall be adjusted downward proportionate to its share of the total increase in funding resulting from the introduction of a new data source to keep the overall need component within available appropriations. For each tribe which benefitted from the introduction of the new data source, their share of the total gain is calculated and that share is used to determine the amount of contribution they will make in each year following the introduction of the new data source to allow the phase down adjustments to be made without exceeding the amount available for allocation. If NEED1NewDS > NEED1OldDS, then tribe gained from the introduction of the new data source and contributes a portion of their gain to offset the phase down adjustments. GAINSHR = (NEED1NewDS -NEED1OldDS)/TOTGAINYR1. CONTRIBn = GAINSHR * TOTPDADJn, Where: NEEDd1NewDS = the amount the tribe would have received in the FY prior to the of introduction of the new data source had the new data source been used to determine their needs funding in that FY. NEED1OldDS = the amount a tribe actually received in the FY prior to the introduction the new data source based on the old data source. GAINSHR = a tribe's share of the total gains realized by all tribes that benefitted from the introduction of the new data source. TOTGAINYR1 = the sum of the amounts that tribes gain from the introduction of the new data source in year one. CONTRIBn = the size of the contribution that non-qualifying tribes give in each year n, where the n represents the number of years elapsed since the introduction of the new data source and equal to one in the first year. TOTPDADJn = the total amount in each year n required to cover the cost of phase down adjustments in that year, i.e. S PDADJn. The initial needs allocation for each tribe is adjusted based on the phase down adjustments and contribution amounts in the phase down schedule. NEED1PD = NEED1 +_PDADJn − CONTRIBn. Where: NEED1PD = a tribe's allocation under the need component after applying the phase down adjustment schedule. NEED1= the initial calculation of need in the current FY from step 6 above. PDADJn = the size of the adjustment that qualifying tribes will receive in each year n, where the n represents the number of years elapsed since the introduction of the new data source and is equal to one in the first year. CONTRIBn = the size of the contribution that non-qualifying tribes give in each year n, where the n represents the number of years elapsed since the introduction of the new data source and equal to one in the first year. PDADJn and CONTRIBn as calculated in the initial phase down adjustment schedule may have to be adjusted downward in subsequent FYs if the total amount available for allocation under the needs Component (i.e. NEEDALLOCAMT in Step 4) is lower than the amount available for that purpose in the FY prior to the introduction of the new data source. If so, both PDADJn and CONTRIBn will be reduced by a factor which is the ratio of NEEDALLOCAMT in current FY to NEEDALLOCAMT in the year prior to the introduction of the new data source. Furthermore, when the 2020 Decennial Census or other new data source is introduced, a new phase down adjustment schedule will be calculated in a similar manner as that was calculated for FY 2018. 8. A tribe's preliminary total allocation is calculated by summing the amounts calculated under the FCAS and need components that will serve as the basis for further adjustments in accordance with §1000.340. GRANT1 = FCAS + NEED1PD. Where: GRANT1 = preliminary total allocation before applying 1996 Operating Subsidy and Modernization minimum funding (see Step 8), Undisbursed Funds Factor (see Step 9) and Minimum Grant provision (see Step 10). FCAS = Formula Current Assisted Stock component equal to OPSUB + MOD. NEED1PD = the Tribe's needs allocation after applying the phase down adjustment schedule. GRANT1 is compared to how much a tribe received in FY 1996 for operating subsidy and modernization under the 1937 Housing Act. If a tribe received more in FY 1996 for operating subsidy and modernization than its IHBG formula allocation, its preliminary total allocation is adjusted up to the FY 1996 amount (See §1000.340(b)). Indian tribes receiving more under the IHBG formula than in FY 1996 have their grant allocations adjusted downward to offset the upward adjustment for the other tribes. TEST = GRANT1 − OPMOD96. If TEST is < = than 0, then GRANT2 = OPMOD96. If TEST is greater than 0 and GRANT1 > MINNEED, then: GRANT2 = GRANT1 − [UNDER1996 * (TEST/OVER1996)]. Where: TEST = variable to decide whether tribes qualify for adjustments under 1996 minimum funding. GRANT1 = preliminary total allocation before applying 1996 Operating Subsidy and Modernization minimum funding (see Step 8), Undisbursed Funds Factor (see Step 9) and Minimum Grant provision (see Step 10). OPMOD96 = funding received by tribe in FY 1996 for Operating Subsidy and Modernization. MINNEED = minimum needs amount. UNDER1996 = for all tribes with TEST less than 0, sum of the absolute value of TEST. OVER1996 = for all tribes with TEST greater than 0, sum of TEST. GRANT2 = preliminary total allocation after applying 1996 Operating Subsidy and Modernization minimum funding (see Step 8) but before applying the Undisbursed Funds Factor (see Step 9) and Minimum Grant provision (see Step 10). 9. The initial allocation amount for the current FY is calculated by adding any adjustments for over- or under-funding occurring in prior FYs to the allocation calculated in the previous step. These adjustments typically result from late reporting of FCAS changes, or conveyances. REPGRANT = GRANT2 + ADJUST1. Where: REPGRANT = Initial Allocation Amount in current FY (see §1000.342). GRANT2 = preliminary total allocation after applying 1996 Operating Subsidy and Modernization minimum funding (see Step 8) but before applying the Undisbursed Funds Factor (see Step 9) and Minimum Grant provision (see Step 10). ADJUST1 = adjustments for over- or under-funding occurring in prior FYs. 10. The Undisbursed Funds Factor is determined by subtracting the sum of each tribe's Initial Allocation Amount for the prior three FYs from the IHBG amounts in HUD's Line of Credit Control System (LOCCS) on October 1 of the FY for which the new allocation is being determined. If the undisbursed funds factor is > $0 and the tribe's initial allocation for the FY exceeds $5 million, its final allocation will be the initial allocation minus the Undisbursed Funds Factor or its 1996 minimum, whichever is greater. Reductions to the initial allocation amounts due to the Undisbursed Funds Factor are summed and redistributed to other tribes in proportion to their initial needs allocation, NEED1PD, calculated above. If REPGRANT > = $5 MILLION and UNDISB$ > (REPGRANTYR1 + REPGRANTYR2 + REPGRANTYR3), then UDFFtest = 1. Where: REPGRANT = Initial Allocation Amount in current FY. REPGRANTYR1 = Initial Allocation Amount in one year prior to current FY. REPGRANTYR2 = Initial Allocation Amount in two years prior to current FY. REPGRANTYR3 = Initial Allocation Amount in three years prior to current FY. UDFFTest = is an indicator as to whether the tribe will give up a portion of its needs allocation due to an excessive amount of undisbursed funds.
For tribes whose UDFFtest = 1, a reduction will occur as follows: REPGRANTaftUDFF = (GRANT2 − (UNDISB$ − (REPGRANTYR1 + REPGRANTYR2 + REPGRANTYR3)) Except if, OPMOD96 > (GRANT2 − (UNDISB$ − (REPGRANTYR + REPGRANTYR2 + REPGRANTYR3)) then, REPGRANTaftUDFF = OPMOD96. Where: REPGRANTaftUDFF = Initial Allocation Amount in current FY adjusted for the Undisbursed Funds Factor. GRANT2 = preliminary total allocation after applying 1996 Operating Subsidy and Modernization minimum funding (see Step 8) but before applying the Undisbursed Funds Factor (see Step 9) and Minimum Grant provision (see Step 10). UNDISB$ = amount in HUD's LOCCS on October 1 of the FY. REPGRANTYR1 = Initial Allocation Amount in one year prior to current FY. REPGRANTYR2 = Initial Allocation Amount in two years prior to current FY. REPGRANTYR3 = Initial Allocation Amount in three years prior to current FY. OPMOD96 = funding received by tribe in FY 1996 for Operating Subsidy and Modernization. So the UDFFadj = REPGRANTaftUDFF − GRANT2 and UDFFadjTOT= Absolute value of the sum of UDFF adjustments for tribes subject to reduction. If UDFFtest is not equal to 1, tribes receive a portion of the funds recovered under the UDFF provision based on their share of total needs excluding any tribes with UDFFtest = 1. For these tribes, then: UDFFadj = (NEED1PD/S Need1PD) * UDFFadjTOT). REPGRANTaftUDFF = REPGRANT + UDFFadj. Where: UDFFadj = amount of the Undisbursed Fund Factor adjustments. Negative amount represents excess undisbursed funds. Positive represents amounts being transferred to other tribes without excess undisbursed funds. NEED1PD = the Tribe's needs allocation after applying the phase down adjustment schedule. UDFFadjTOT = absolute value of the sum of Undisbursed Fund Factor adjustments for tribes that meet the criteria for reduction and is equal to the sum available for redistribution among other tribes based on their initial needs allocation. REPGRANTaftUDFF = Initial Allocation Amount in current FY adjusted for the Undisbursed Funds Factor. REPGRANT = Initial Allocation Amount in current FY. 11. A final adjustment is made under §1000.329 which allocates available carryover amounts up to $3 million to achieve minimum total allocations. Tribes that certify in their Indian Housing Plans the presence of any eligible households at or below 80 percent of median income and whose total allocation determined in the preceding step is less than 0.011547 percent of the FY appropriation after set-asides, will have their allocation adjusted upwards to 0.011547 percent of the FY appropriation after set-asides, or to a lesser percentage which can be achieved for all eligible tribes with available carryover funds set-aside for this purpose. MINGRANT = APPROP * 0.0001547. Where: APPROP = current FY appropriation for the IHBG program less amounts in the Appropriations Act mandated for purposes other than the formula allocation. If (GRANT2 + UDFFADJ) < MINGRANT and income-based need has been identified in a tribe's IHP, then tribe qualifies for MINGRANTADJ. For Tribes that qualify, calculate: MINGRTADJTEST = MINGRANT—(GRANT2 + UDFFADJ). If the Sum for all tribes of MINGRTADJTEST < MGHOLD, then: MINGRANTADJ = MINGRTADJTEST. If the Sum for all tribes of MINGRANTADJTEST > MGHOLD, then: MINGRANTADJ = MINGRANTADJTEST * (MGHOLD/S MINGRANTADJ) Where: GRANT2 is the approximate grant allocation in any given year for any given tribe. UDFFADJ = amount of UDFF adjustment. MINGRANT = Minimum total allocation established in §1000.329. MINGRANTADJTEST = amount required to bring all qualifying tribes' allocations up to the minimum total allocation amount. This amount can then be compared. MGHOLD = amount set-aside for allocation under minimum total grant provision (see Step 2). MINGRANTADJ = actual amount of the minimum grant adjustment that can be accommodated with the amount set aside from carryover for this purpose. 12. A tribe's final allocation consists of the initial current FY formula allocation with three adjustments. FINALALLOCATION = GRANT2 + ADJUST1 + UDFFadj + MINGRANTADJ Where: FINALALLOCATION = total amount a tribe is eligible to receive as a grant in the current FY. ADJUST1 = adjustments for over- or under-funding occurring in prior FYs. UDFFadj = amount of the Undisbursed Fund Factor adjustments. Negative amount represents excess undisbursed funds. Positive represents amounts being transferred to other tribes without excess undisbursed funds. MINGRANTADJ = actual amount of the minimum grant adjustment that can be accommodated with the amount set aside from carryover for this purpose. [81 FR 83682, Nov. 22, 2016] |