Merger of Public Housing Drug Elimination Program (PHDEP) Funding with the Public Housing Operating Fund for Fy02

With the signing of the FY2002 HUD/VA Appropriations Act, drug elimination grants for low-income housing are not funded as a separate set aside through the PHDEP account. Congress has provided an 8.1 percent increase over the fiscal year 2001 level for the public housing operating fund account to reflect the merger of funds previously provided for PHDEP.

Congress encourages PHAs to support anti-drug and crime programs by authorizing all activities permissible under PHDEP to be eligible under the operating and capital fund accounts. Further, Congress has authorized PHAs to continue spending previously awarded PHDEP funds while transitioning anti-crime and anti-drug programs into their annual operating and capital fund budgets.

With respect to the PHA Plan, for the FY2002 Plan cycle, PHAs will no longer be required to complete Subcomponent 13 D of the annual Plan or the PHDEP template. With the exception of high performers and small PHAs, housing authorities must complete Subcomponents 13A-C of the Plan. For annual plans submitted to HUD prior to this notification, PHAs may undertake the activities outlined in their PHDEP plan, change the scope or eliminate anti-drug/crime activities. Changes in the scope or elimination of activities will not require a significant amendment to the plan where the terms have not been defined locally. However, PHAs must provide notification to the Resident Advisory Board(s) of such changes.