Appendix A to Part 1000 - Indian Housing Block Grant Formula Mechanics
24:4.1.3.1.24.8.41.1.11 : Appendix A
Appendix A to Part 1000 - Indian Housing Block Grant Formula
Mechanics
This appendix shows the different components of the Indian
Housing Block Grant (IHBG) formula. The following text explains how
each component of the IHBG formula is calculated.
1. The first step in running the IHBG formula is to determine
the amount available for allocation in the Fiscal Year (FY). It is
the sum of:
(a) The FY appropriation for the IHBG program less amounts in
the Appropriations Act mandated for purposes other than the formula
allocation.
(b) The net amount, if any, made available as a result of
corrections for over- or under-allocations in prior FYs.
(c) The amount, if any, made available pursuant to §
1000.536.
(d) The amounts, if any, made available because tribes
voluntarily returned, or did not accept, the amounts allocated to
them in prior FYs, defined as “carryover” (see § 1000.329).
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 11
below).
3. The IHBG formula first calculates the amount each tribe is
allocated under the Formula Current Assisted Stock (FCAS) component
(See §§ 1000.310 through 1000.322). The FCAS component is comprised
of two parts, Operating Subsidy (§ 1000.316(a)) and Modernization
(§ 1000.316(b)).
(a) The Operating Subsidy component is calculated in two steps,
as follows:
(i) Each tribe's counts of Low Rent, Homeownership (Mutual Help
and Turnkey III), and Section 8 units are multiplied by the
National Per Unit Subsidy for operations for that category of unit,
which is a 1996 index for the type of unit that is adjusted for
inflation (see § 1000.302 defining National Per Unit Subsidy). The
amounts are summed to create an initial calculation of the
operating subsidy component.
(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 Allowable Expense Level (AEL) factor is calculated
by dividing the tribe's AEL, a historic per-unit measure of
operating cost, by the national weighted average AEL (see §
1000.302 defining Allowable Expense Level). Second, a Fair Market
Rent (FMR) factor is calculated by dividing the tribe's FMR amount,
an area-specific index published annually by HUD (see § 1000.302
Fair Market Rent factor), by the national weighted average FMR.
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).
(See § 1000.320).
(b) The Modernization component is determined using two methods
depending on the number of public housing units that a tribe's
housing authority operated prior to the Native American Housing and
Self-Determination Act.
(i) For all tribes, the number of Low Rent, Mutual Help, and
Turnkey III units are multiplied by the National Per Unit Subsidy
for modernization from 1996 adjusted for inflation (see § 1000.302
defining National Per Unit Subsidy).
(ii) For Indian tribes with an Indian Housing Authority (IHA)
that owned or operated fewer than 250 units on October 1, 1997, an
alternative modernization component is calculated from the amount
of funds the IHA received under the assistance program authorized
by Section 14 of the 1937 Act (not including funds provided as
emergency assistance) for FYs 1992 through 1997 (see §
1000.316(b)(2)). If this alternative calculation is greater than
the amount calculated in paragraph (a) above, it is used to
calculate the tribe's modernization component.
(iii) The Modernization component is then multiplied by a local
area cost adjustment factor based on the Total Development Cost
(TDC) for the tribe (see § 1000.302) divided by the national
weighted average of all TDCs weighted by each tribe's
pre-adjustment Modernization calculation in paragraph (b)(i) or
(ii) above as applicable.
4. The total amounts calculated under the FCAS component for
each tribe are then added together to determine the national total
amount allocated under the FCAS component. That total is subtracted
from the funds available for allocation less the carryover amount
held aside for allocation under the minimum total grant provision
in § 1000.329. The remainder is the total amount available for
allocation under the need component of the IHBG formula.
5. The first step in calculating need component is identifying
weighted needs variables and adjusting for local area cost
differences.
(a) Need is first calculated using seven factors, where each
factor is a tribe's share of the national totals for each of seven
variables. The data used for the seven variables is described in §
1000.330. The person count variable is adjusted for statistically
significant undercounts for reservations, trust lands and remote
Alaska and for growth in population since the latest Decennial
Census. The Population Cap provision in § 1000.302 Formula Area (5)
is then applied. Needs data are capped if the American Indian and
Alaska Native (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.
The factors are weighted as set forth in § 1000.324, as
follows:
(i) 22 percent of the amount available for allocation under the
needs component are allocated by the share of the total AIAN
households paying more than 50 percent of their income for housing
and living in each tribe's Formula Area (see § 1000.302);
(ii) 25 percent are allocated by the share of the total AIAN
households living in overcrowded housing and/or without kitchen or
plumbing in each tribe's Formula Area;
(iii) 15 percent are allocated by the share of the total AIAN
households with an annual income less than or equal to 80 percent
of Formula Median Income (see § 1000.302) living in each tribe's
Formula Area less the tribe's number of FCAS.
(iv) 13 percent are allocated by the share of AIAN households
with annual income less than or equal to 30 percent of Formula
Median Income living in each tribe's Formula Area;
(v) 7 percent are allocated by the share of AIAN households with
annual income between 30 percent and 50 percent of Formula Median
Income living in each tribe's Formula Area;
(vi) 7 percent are allocated by the share of AIAN households
with annual income between 50 percent and 80 percent of Formula
Median Income living in each tribe's Formula Area;
(vii) 11 percent are allocated by the share of AIAN persons
living in each tribe's Formula Area.
(b) The result of these calculations for each tribe is then
multiplied by a local area cost adjustment based on the Total
Development Cost for the tribe (see § 1000.302) divided by the
national weighted average of TDCs weighted by each tribe's
pre-adjustment need calculation. (See § 1000.325).
6. Each tribe's initial need allocation amount is then adjusted
under the minimum need allocation provision of § 1000.328. Tribes
that are 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 Plans
will be allocated no less than a specified minimum under the needs
component of the formula. The specified minimum amount shall equal
0.007826 percent of the appropriation for that FY after set-asides.
The increase in funding for the tribes allocated the minimum need
amount is funded by a reallocation from other tribes whose needs
allocation exceeds the minimum need amount. This is necessary in
order to keep the total allocation within the appropriation level
(See § 1000.328).
7. Whenever a new Data Source is first introduced, provision is
made to moderate extreme impacts through phase down adjustments.
For purposes of these adjustments, new data sources (see §
1000.331) include the initial introduction of the American
Community Survey and 2010 Decennial Census in 2018, and the initial
introduction of the 2020 Decennial Census when it becomes
available. 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. 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 under § 1000.331 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 needs allocation within available appropriations.
8. A tribe's preliminary total allocation for a grant is
calculated by summing the amounts calculated under the FCAS and
need components. This amount 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 it does under the 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 adjustments for
the other tribes.
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 which occur in a timely manner
following the removal of units from eligibility due to conveyance
eligibility.
10. The Undisbursed Funds Factor component is calculated based
on the initial allocation amounts calculated above. Tribes with an
initial allocation of $5 million or more and undisbursed IHBG grant
amounts (the amount available to the tribe in HUD's line of credit
control on October 1 of the FY for which the allocation is being
made) in an amount greater than the sum of the prior 3 years'
initial allocation calculations will have their initial allocation
amount adjusted down by the difference between the tribe's
undisbursed grant amounts and the sum of its prior 3 years' initial
allocation calculations. If this adjustment would bring the tribe
below its FY 1996 minimum (see § 1000.340(b)), then the tribe will
be allocated its FY 1996 minimum. The sum of the adjustments will
be reallocated among the other tribes proportionally under the need
component.
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 current FY formula allocation
after the Undisbursed Funds Factor adjustment 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 held for this adjustment
(see 2 above).
[81 FR 83682, Nov. 22, 2016]