FR 2025-04270

The Department of Housing and Urban Development (HUD) has put forward a proposal for a new information collection initiative concerning the Operating Fund Shortfall Program. This program is important as it seeks to offer financial support to Public Housing Agencies (PHAs) that are struggling with financial difficulties. HUD's proposal is currently open to public comment, allowing for a 60-day period in which feedback can be submitted by interested parties. The comments will be accepted until May 16, 2025.

General Overview

The purpose of this document is to notify the public about HUD's proposed information collection and the specific requirements involved. This initiative receives its mandate from the Paperwork Reduction Act, which necessitates that federal agencies collect and use information efficiently and effectively. HUD intends to use the data collected to monitor and assess the performance of the Operating Fund Shortfall Program, which has been active since 2021. This program supports PHAs by allocating funds to bolster their financial reserves and assists them in implementing plans for financial improvement.

Significant Issues and Concerns

While HUD's initiative aims to be beneficial, certain issues within the document may warrant concern:

• Details on Fund Allocation: The notice mentions a $25 million set-aside for the program but does not explain how these funds are allocated among different PHAs. This lack of detail could lead to concerns about transparency and possible favoritism in fund distribution.

• Insufficient Form Descriptions: References are made to several forms (HUD-50093, HUD-50094, HUD-50095, HUD-50096, and SF-425), yet there is no detailed description of what data each form will gather. This lack of clarity makes it difficult for stakeholders to understand the scope and nature of the information being requested.

• Criteria for Identifying At-Risk PHAs: The document does not outline the criteria used to identify PHAs at risk of financial shortfalls. The absence of such criteria may lead to ambiguities regarding which agencies qualify for support.

• Missing Burden Estimates: Although there is a mention of estimated burden hours and costs for respondents, the actual figures are omitted, leaving stakeholders uncertain about the resource commitments and implications for the PHAs.

• Role of Public Comments: The solicitation for public comments does not clarify how such feedback will impact the decision-making process. Understanding the weight of public input could encourage more meaningful and robust participation.

Impact on the Public and Stakeholders

From a broad perspective, the document underscores HUD’s effort to address financial emergencies in public housing, an endeavor that can ultimately improve housing stability for many low-income families. Public housing agencies that are eligible for the shortfall program could experience positive impacts, such as increased financial resilience and operational improvements, which in turn may enhance service delivery to residents.

However, without more transparency and clarity regarding how funds are distributed and what pressures PHAs might face in complying with reporting requirements, there are risks of inefficiencies or perceptions of inequity. Stakeholders could be either positively or negatively impacted depending on their ease with understanding and navigating the outlined processes.

Overall, this proposed information collection, if implemented with careful consideration of the highlighted concerns, could play a key role in supporting public housing initiatives. Enhanced transparency and clear guidance on certain aspects of the proposal would likely facilitate better engagement from the public and impacted stakeholders.

The document from the Office of the Assistant Secretary for Public and Indian Housing within the Department of Housing and Urban Development (HUD) outlines a proposal for information collection related to the Operating Fund Shortfall Program. This program is designed to support Public Housing Agencies (PHAs) facing or at risk of financial shortfalls.

Financial Allocation Summary

The document indicates that the Shortfall Program was created with an annual $25 million set-aside in the Public Housing Fund. This financial allocation is specific to assisting PHAs that are either experiencing financial difficulties or are at risk of such shortfalls. Since its inception in FY 2021, the program focuses on bolstering the financial reserves of these agencies, aiming to increase their reserves to cover two months of expenses.

Relation to Identified Issues

The mention of the $25 million set-aside raises several issues concerning transparency and clarity. The document does not elaborate on how this financial allocation is distributed among eligible PHAs, leaving questions about potential favoritism or unequal distribution. A clearer explanation of the allocation process would help in assessing the equity and fairness of the fund distribution.

Moreover, while the document specifies the forms involved (HUD-50093, HUD-50094, HUD-50095, HUD-50096, and SF-425), it does not describe what information these forms will capture. This lack of detail could hinder understanding of how the financial data collected will influence the allocation of the $25 million or how effectively it addresses the agencies' financial issues.

Another noted issue is the absence of specific criteria that identify which PHAs are considered at risk of financial shortfalls. Without clear criteria, there is uncertainty around which agencies qualify for support and how the $25 million disbursement is justified.

Lastly, while the document refers to the estimated burden hours and costs for respondents, the actual figures are missing. This omission makes it difficult for PHAs to gauge the resource commitment required to participate in the program and potentially access these funds.

In summary, the document outlines a significant financial commitment aimed at improving the financial stability of Public Housing Agencies. However, the lack of specific details about the allocation process, form descriptions, identification criteria, and cost estimates may limit transparency and understanding of the program's financial activities. Addressing these issues could improve clarity and ensure more equitable access to the program's benefits.