HOME Formula Allocation Changes -- FY 2002

The authorized funding for HOME increased by 0.6 % for FY 2002 from $1,733,577,000 to $1,743,448,000. Almost all the allocations for FY 2002 were similar to the allocations for FY 2001. Only 20 of the 595 state or entitlement PJs that were funded in both FY 2001 and FY 2002 had a change in allocation greater than 2% or less than -2%.

There are few changes to PJs. There were only a net four new urban county PJs and five new consortia PJs. There were only six PJs with geography changes and an allocation change of 5% or more. The only formula factor that was updated is the RS Means cost of construction indicator.

Overall FY 2002 Funding Changes

The following table summaries the changes for HOME in FY 2002.

HOME Formula Amounts and Eligible areas
	FY 2001 Funding ($000)	FY 2002 Funding ($000)	FY 2001 Eligible areas	FY 2002 Eligible areas
Allocation total	$1,733,577	$1,743,448
Entitlement PJ Total	$1,038,146	$1,044,069	542	550
Central cities	$681,096	$677,312	275	274
Other Metro Cities	$57,108	$57,021	75	75
Urban Counties	$125,701	$131,223	85	89
Consortia	$174,241	$178,513	107	112
State PJ Total	$695,431	$699,379
State $500k bonus if no included PJs	$2,000	$2,000	4	4
States from 40% pot	$693,431	$697,379	52	52

Geography Changes for FY 2002

HOME PJs are metropolitan cities, urban counties and consortia that meet the minimum funding level of $500,000 for FY 2002 and any PJs that are grand-fathered because they were previously funded. Consortia are combination of metropolitan cities, urban counties or other contiguous units of government that meet the minimum funding requirements. The HOME formula includes any new metropolitan cities and urban counties that meet minimum funding and as well as changes to the participation of places with their urban counties.

The following are the new urban counties or consortia for FY 2002.

Urban Counties	Status Change
Mobile Co AL	New Urban County
Manatee Co FL	New Urban County
Dauphin Co PA	New Urban County
Richland Co SC	New Urban County
Somerset Co NJ	Lost Urban County status - Became consortia
Jacksonville-Duval Co FL	Became Urban County - was Metro City
Consortia	Status Change
Adams Co CO	New Consortia
Auburn ME	New Consortia
Washington Co TX	New Consortia
Rock Co WI	New Consortia
Somerset Co NJ	Became Consortia - was Urban County

There are 24 existing PJs that are urban counties and consortia which had formula factor changes due to participation changes. Most of these changes did not significantly affect the FY 2002 allocations. Only six consortia with geographic changes had an allocation change of at least 5%: Warton Co TX, Gastonia NC, Newton MA, Turlock CA, Parkersburg WV, and Erie Co NY.

Formula Variable Change for FY 2002 - Cost of Producing Housing - RS Means

The formula variables for HOME in FY 2002 were unchanged except for the RS Means cost of construction index. The updated RS Means cost data for geographic areas are based on tables provided in the most recent edition of the "Means Square Foot Cost Annual Edition".

The RS Means index measures the differential cost of producing housing for the PJ. It is computed by multiplying the ratio of RS Means for a local area PJ over the national average. In the HOME formula this index is weighted by 0.2 and multiplied times the number of housing units with one of four problems from the 1990 census.

Updating the RS Mean index had little impact on overall funding. For all but 10 PJs, the change in the RS Means index for individual PJs in FY 2002 was within 2 points of the index for FY 2001.

Content Archived: April 28, 2011