PART II: HUD's Major Non-Competitive Programs
Public Housing Operating Subsidy

The Public Housing Operating Subsidy program provides funding, based on a formula, to public housing agencies (PHAs) to help them meet their operating and maintenance expenses and offset operating deficits associated with public housing units. For FY 2000, $3.1 billion is appropriated to the Public Housing Operating Subsidy program. The program provides subsidies to approximately 3,200 PHAs. Funding is primarily allocated based upon the Performance Funding System (PFS). Under PFS, each PHA's subsidy is equal to the difference between a formula-determined allowable expense level (plus utility and independent audit costs) and the PHA's projected income (rents, interest on investments, and other locally generated income).