OPERATING FUND (SUBSIDY)     This year the operating fund calculation is undergoing some changes, some of you will receive additional funds (yea!) and some of you will receive less funds (sorryL).  This has been an ongoing evolution starting with the Negotiated Rule Making Committee, and then, onto the Harvard Cost Study (to decide how much $$ it takes to fund a well-run Housing Authority) and  then after several PELs (project expense level) and then WAPELs (weighted average project expense level) at last, we arrive at this point.   First off, I want to recommend you purchase Microsoft excel software (a computer program for spreadsheets) if you do not already have it on your computer. You can purchase the software on-line at WWW.microsoft.com or off the shelf at a computer store, Microsoft works does not include excel (just a word of caution).  Why will you need excel?  In order to "read" the form you will need excel.  The information for receiving operating fund is going to be emailed to you in excel format and you will have to email the completed form back to HUD.    If you are utilizing our services to prepare the operating form HUD-52723 tool (should have received the form emailed from HUD around August 16, 2006), please email it to us.  Then we fill in the form and email it back to you to review and forward via email to your respective HUD field office. The 52723 tool can NOT be faxed.  The deadline for submission is September 15, 2006.    It is recommended you email the 52723 to your respective field office AND send a hard copy of the following: HUD-52723 calculation of operating subsidy HUD-52722 operating fund calculation of utilities expense level SF 424          application for federal assistance HUD-50071 certification of payments to influence federal transactions If you have a board meeting prior to the deadline, include the board resolution, (otherwise send later, just needs to be submitted prior to beginning of your fiscal year end).   Now, for some of the changes in the funding process; q       Only occupied units will receive subsidy, unless you can prove changing market conditions; or units undergoing modernization; or vacant due to litigation, disasters, casualty losses; or 5 units or less. q       Add-ons include PILOT, cost of audit, resident participation, information technology fee and asset management fee. q       Any units rented to tenants that are over-income will not receive subsidy   Please refer to PIH Notice 2006-30 at www.hudclips.org/sub_nonhud/cgi/pdfforms/06-30PIH.doc for additional info and the website www.hud.gov/offices/pih/programs/ph/am/of/