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PART II: SCOPE OF THE FSS PROGRAM <br />2-II.A. PHAS REQUIRED TO OPERATE AN FSS PROGRAM <br />Each PHA that received funding for public housing units under the FY 1991 and FY 1992 FSS <br />incentive award competitions must operate a public housing FSS program. Each PHA that <br />received funding for Section 8 rental certificates or vouchers under the combined FY 1991/1992 <br />FSS incentive award competition also must operate a Section 8 FSS program. <br />In addition, unless the PHA receives an exemption under 24 CFR 984.105, each PHA for which <br />HUD reserved funding (budget authority) for additional rental certificates or vouchers in FY <br />1993 through October 20, 1998, must operate a Section 8 FSS program. Each PHA for which <br />HUD reserved funding (budget authority) to acquire or construct additional public housing units <br />in FY 1993 through October 20, 1998, must operate a public housing FSS program as well. <br />Mandatory Minimum Program Size (MMPS) [24 CFR 984.105] <br />PHAs that must operate an FSS program under 24 CFR 984.101 are subject to a minimum <br />program size requirement. <br />In public housing, a PHA's FSS program minimum program size is determined by adding the <br />total number of public housing units reserved in FY 1991 and FY 1992 under the FSS incentive <br />award competitions to the number of public housing units reserved in FY 1993 through October <br />20, 1998, and subtracting the number of families that have graduated from the PHA's public <br />housing FSS program on or after October 21, 1998, by fulfilling their FSS contract of <br />participation obligations. <br />In the housing choice voucher program, a PHA's FSS program minimum program size is <br />determined by adding the number of HCV program units reserved under the combined FY <br />1991/1992 FSS incentive award competition to the number of additional rental voucher units <br />reserved in FY 1993 through October 20, 1998, (not including the renewal of funding for units <br />previously reserved) then subtracting the units that are excluded from minimum program size <br />and subtracting the number of families who have graduated from the PHA's Section 8 FSS <br />program on or after October 21, 1998, by fulfilling their contract of participation obligations. <br />Further, when determining the Section 8 FSS program size for funding reserved in FY 1993 <br />through October 20, 1998, the PHA must exclude funding for families affected by termination, <br />expiration, or owner opt -out under Section 8 project -based programs; funding for families <br />affected by demolition or disposition of a public housing project or replacement of a public <br />housing project; funding for families affected by conversion of assistance from the Section 23 <br />leased housing or housing assistance payments programs to the housing choice voucher program; <br />funding for families affected by the sale of a HUD -owned project; and funding for families <br />affected by the prepayment of a mortgage or voluntary termination of mortgage insurance. <br />© Copyright 2011 by Nan McKay & Associates <br />Unlimited copies may be made for internal use. <br />Page 2-5 <br />Model FSS Action Plan 12/1/11 <br />