Last week, HUD released its Public Housing Operating Fund Explanation of Calendar Year (CY) 2018 Obligations for January. HUD estimated its initial funding using available 2017 and 2018 formula data, including CY 2018 prepopulated formula data and CY 2017 HUD-52723 data. HUD is using an interim proration level of 90 percent. HUD considered 2018 estimated eligibility and Continuing Resolution (CR) status to determine this interim proration. This proration may change once Congress finalizes a FY 2018 Appropriations Bill. The current CR will expire on January 19. Operating Funds should be available in eLOCCS now.
HUD also released the 2018 Utility Expense Level (UEL) Inflation Factor and the Rental Income Inflation Factor that is applied to Formula Income (FI) last week. For 2018, HUD is applying an inflation factor of 5.37 percent for UELs, and an inflation factor of 4.39 percent for rental income. Last year, HUD applied a -7.01 percent inflation factor for UELs, and a 4.12 percent inflation factor for rental income. HUD determines 2018 rental income by inflating 2016 rent with 2017 and 2018 inflation factors and annualizing inflation rates based on a PHA’s financial calendar.
For more information on how this methodology is applied, please continue reading.