Further Information on CY 2008 3rd Quarter Obligation

The following provides an explanation of the amount provided to PHAs under the third quarter funding obligation for CY 2008. Under each of the three funding obligations, the Department estimated a PHA's subsidy eligibility based on its actual CY 2007 subsidy eligibility, but adjusted for inflation and other factors, including transition funding. Let's say a PHA's CY 2007 subsidy eligibility was $1.0 million and its estimated CY 2008 subsidy eligibility based on the adjustment was $1.03 million. For the first two funding obligations, covering the first six months of CY 2008, proration was projected at 84%. However, for the third quarter funding obligation, the Department's estimate of proration was lowered to 82%. This lower proration factor (82%) was applied to the Department's original estimate of the PHA's subsidy eligibility (in this case, $1.03 million). Please note that the Department did not use PHAs' SAGIS submissions for making funding obligations for the third quarter. Those SAGIS submissions had not been reviewed and approved by HUD at the time the Department prepared its third quarter funding amounts. HUD has used estimated eligibility and an interim proration since 2003 to insure funding to PHAs before final eligibility before final eligibility for all PHAs is available.

The Department has posted PHAs' eligibility approved to date by HUD Field Offices on its Asset Management Project-Based Funding webpage. The Department will update this table when final eligibility amounts have been approved.