Operating Subsidy Training: New Units Calculation and Submission Guidelines

1. Module 8: New Units Calculation and Submission of Operating Subsidy Training

2. Objectives • Define New Unit • Correctly Place New Unit Data on Form HUD-52723 • Understand Implications of New Units on HUD-52722 – (Rolling Base)

3. Definition • 990.155 • Unit Added to ACC • Occupied by Eligible Family • Added During or After Reporting Period

4. New Unit Status • First Day of Month • Last Day of Month • Consistency – Same for Both New Units and Unit Categorization • Assumed to be Fully Occupied for Funding Period

5. Impact on HUD-52723 • Eligible Unit Months • Resident Participation • Asset Management Fee • IT Fee • UEL/PEL/Formula Income

6. Section 2, Lines 01 through 04

7. Impact on Line 01 – Occupied Dwelling Units • Occupied Dwelling Units • Includes Only Partial Year of New Unit Data • 0 to 12 Unit Months per Unit

8. Impact on Line 03 – New Units • New Units – Eligible in FY 2007 • Eligible for Funding but Not Reported • Eligible for 0 to 12 Unit Months per Unit

9. Impact on Line 04 – New Units • New Units – Eligible in FY 2006 • Not Included in FY 2006 Funding • Eligible for 0 to 3 Unit Months per Unit

10. New Unit Categories • Category #1: Units Added During Reporting Period (7/1/2005 to 6/30/2006) • Category #2: Units Added After Reporting Period but Before FY 2006 Final Revision (7/1/2006 to 7/15/2006) • Category #3: Units Added After Reporting Period and After FY 2006 Final Revision in CY 2006 (7/16/2006 to 12/31/2006) • Category #4: Units Added in Funding Period (1/1/2007 to 7/15/2007)

11. Category #1: Units Added During Reporting Period

12. Category #2: Units After Reporting PeriodPrior to FY 2006 Final Revision

13. Category #3: Units Added After Reporting Period and After FY 2006 Final Revision

14. Category #4: Units Added During Funding Period

15. Impact on HUD-52722 • Need to Annualize New Unit Consumption • Rolling Base Changes • Multi-Year Impact

16. Impact on HUD-52722New Unit Revisions • No Changes to HUD-52722 Due to New Unit Revisions • New Units Added After Reporting Period do not require update to UEL Calculation • UEL is PUM Base, Utility Expense Funded through EUM Increase

17. Section 1 – General Information • Unit Change Indicator Box

18. HUD-52722 Impacted Line Items

19. Section 2 – Current Consumption • Line 1 – Actual Consumption • Matches Reporting Period (7/1/2005 to 6/30/2006) • Includes New and Existing Unit Consumption Data

20. Section 3 – Rolling Base Consumption • Line 7 – Actual Consumption for New Units • New Consumption Data is added to Rolling Base

21. Section 6 – Payable Consumption • Line 14 – Annualization of Consumption for New Units • Estimates missing new unit consumption data from reporting period • Line 7 + Line 14 should equal 12 months of consumption

22. HUD-52722 Additional Reporting Requirements • Consumption Data attached with HUD-52722 • Consumption Estimate Methodology attached with HUD-52722

23. Section 3 – Rolling Base Consumption • Does not include New Unit Utility Consumption Data

24. Impact on Rolling BaseYear 1 - New Units Added • No New Unit Consumption Data reported in Rolling base • Use Line 07 – Actual Consumption for New Units

25. Impact on Rolling BaseYears 2 to 5 After New Units Added • Line 2 (Rolling base year 1) = Partial Year Data • Report zero in rolling base year 1 • Use Line 7 – Actual Consumption for New Units • Line 2 (Rolling base year 1) = Full Year Data • Rolling base year 1 as reported • Rolling base year 2 or 3 as reported or previous rolling base year • Line 7 equals 0

26. Deletion of Consumption Data Example • Unit is added to the ACC and occupied by an eligible family on February 1, 2006 • Unit consumed 50 kwh of electricity consumption during reporting period • Unit is expected to consume 120 kwh of electricity consumption annually

27. Adjustments to HUD-52722New Unit Consumption Data Partial Year of Data Full Year of Data Adjustment

28. Exercise 6 • Refer to “New Units – Exercise 6” and forms HUD-52723 and HUD-52722