The Council of Large Public Housing Authorities (CLPHA), National Association of Housing and Redevelopment Officials (NAHRO), and Public Housing Authorities Directors Association (PHADA) have asked HUD to extend the frozen rental income provision in the public housing operating fund formula for three additional years.rnThe purpose of frozen formula income was to reduce federal subsidy obligations over the long term and provide PHAs the potential for additional revenue in the short term to alleviate the transition to asset management, the housing groups said in an issue brief.rnThe current formula freezes rental income at the 2004 level for 2007, 2008, and 2009 for reporting purposes only. Any additional rent above the frozen income level received during these years can be retained by the PHA to use in its operations. The frozen income provision was designed to give PHAs an incentive to perform more accurate rent calculations, improve rent collections, and help tenants increase their incomes.rnHUD would potentially benefit in the long run by providing less operating subsidy after the three-year rent freeze ended, since the basic operating subsidy is the difference between the formula expense level and tenant rent payments.
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