[Code of Federal Regulations]
[Title 24, Volume 1]
[Revised as of April 1, 2004]
From the U.S. Government Printing Office via GPO Access
[CITE: 24CFR92.50]

[Page 581-583]
 
                 TITLE 24--HOUSING AND URBAN DEVELOPMENT
 
PART 92_HOME INVESTMENT PARTNERSHIPS PROGRAM--Table of Contents
 
                      Subpart B_Allocation Formula
 
Sec. 92.50  Formula allocation.


    (a) Jurisdictions eligible for a formula allocation. HUD will 
provide allocations of funds in amounts determined by the formula 
described in this section to units of general local governments that, as 
of the end of the previous fiscal year, are metropolitan cities, urban 
counties, or consortia approved under Sec. 92.101; and States.
    (b) Amounts available for allocation; State and local share. The 
amount of funds that are available for allocation by the formula under 
this section is equal to the balance of funds remaining after reserving 
amounts for insular areas, housing education and organizational support, 
other support for State and local housing strategies, and other purposes 
authorized by Congress, in accordance with the Act and appropriations.
    (c) Formula factors. The formula for determining allocations uses 
the following factors. The first and sixth factors are weighted 0.1; the 
other four factors are weighted 0.2.
    (1) Vacancy-adjusted rental units where the household head is at or 
below the poverty level. These rental units are multiplied by the ratio 
of the national rental vacancy rate over a jurisdiction's rental vacancy 
rate.

[[Page 582]]

    (2) Occupied rental units with at least one of four problems 
(overcrowding, incomplete kitchen facilities, incomplete plumbing, or 
high rent costs). Overcrowding is a condition that exists if there is 
more than one person per room occupying the unit. Incomplete kitchen 
facilities means the unit lacks a sink with running water, a range, or a 
refrigerator. Incomplete plumbing means the unit lacks hot and cold 
piped water, a flush toilet, or a bathtub or shower inside the unit for 
the exclusive use of the occupants of the unit. High rent costs occur 
when more than 30 percent of household income is used for rent.
    (3) Rental units built before 1950 occupied by poor households.
    (4) Rental units described in paragraph (c)(2) of this section 
multiplied by the ratio of the cost of producing housing for a 
jurisdiction divided by the national cost.
    (5) Number of families at or below the poverty level.
    (6) Population of a jurisdiction multiplied by a net per capita 
income (pci). To compute net pci for a jurisdiction or for the nation, 
the pci of a three person family at the poverty threshold is subtracted 
from the pci of the jurisdiction or of the nation. The index is 
constructed by dividing the national net pci by the net pci of a 
jurisdiction.
    (d) Calculating formula allocations for units of general local 
government. (1) Initial allocation amounts for units of general local 
government described in paragraph (a) of this section are determined by 
multiplying the sum of the shares of the six factors in paragraph (c) of 
this section by 60 percent of the amount available under paragraph (b) 
of this section for formula allocation. The shares are the ratio of the 
weighted factor for each jurisdiction over the corresponding factor for 
the total for all of these units of general local government.
    (2) If any of the initial amounts for such units of general local 
government in Puerto Rico exceeds twice the national average, on a per 
rental unit basis, that amount is capped at twice the national average.
    (3) To determine the maximum number of units of general local 
government that receive a formula allocation, only one jurisdiction (the 
unit of general local government with the smallest allocation of HOME 
funds) is dropped from the pool of eligible jurisdictions on each 
successive recalculation, except that jurisdictions that are 
participating jurisdictions (other than consortia that fail to renew the 
membership of all of their member jurisdictions) are not dropped. Then 
the amount of funds available for units of general local government is 
redistributed to all others. This recalculation/redistribution continues 
until all remaining units of general local government receive an 
allocation of $500,000 or more or are participating jurisdictions. Only 
units of general local government which receive an allocation of 
$500,000 or more under the formula or which are participating 
jurisdictions will be awarded an allocation. In fiscal years in which 
Congress appropriates less than $1.5 billion of HOME funds, $335,000 is 
substituted for $500,000.
    (4) The allocation amounts determined under paragraph (d)(3) of this 
section are reduced by any amounts that are necessary to provide 
increased allocations to States that have no unit of general local 
government receiving a formula allocation (see paragraph (e)(4) of this 
section). These reductions are made on a pro rata basis, except that no 
unit of general local government allocation is reduced below $500,000 
(or $335,000 in fiscal years in which Congress appropriates less than 
$1.5 billion of HOME funds) and no participating jurisdiction allocation 
which is below this amount is reduced.
    (e) Calculating formula allocations for States. (1) Forty percent of 
the funds available for allocation under paragraph (b) of this section 
are allocated to States. The allocation amounts for States are 
calculated by determining initial amounts for each State, based on the 
sum of the shares of the six factors. For 20 percent of the funds to be 
allocated to States, the shares are the ratio of the weighted factor for 
the entire State over the corresponding factor for the total for all 
States. For 80 percent of the funds to be allocated to States, the 
shares are the ratio of the weighted factor for all units of general 
local government within the State that do not receive a formula 
allocation

[[Page 583]]

over the corresponding factor for the total for all States.
    (2) If the initial amounts for Puerto Rico (based on either or both 
the 80 percent of funds or 20 percent of funds calculation) exceed twice 
the national average, on a per rental unit basis, each amount that 
exceeds the national average is capped at twice the national average, 
and the resultant funds are reallocated to other States on a prorata 
basis.
    (3) If the initial amounts when combined for any State are less than 
the $3,000,000, the allocation to that State is increased to the 
$3,000,000 and all other State allocations are reduced by an equal 
amount on a prorata basis, except that no State allocation is reduced 
below $3,000,000.
    (4) The allocation amount for each State that has no unit of general 
local government within the State receiving an allocation under 
paragraph (d) of this section is increased by $500,000. Funds for this 
increase are derived from the funds available for units of general local 
government, in accordance with paragraph (d)(4) of this section.

[61 FR 48750, Sept. 16, 1996, as amended at 62 FR 28928, May 28, 1997; 
67 FR 61755, Oct. 1, 2002]

                          Insular Areas Program