1940.577—Rental Assistance (RA) for existing projects.
(a) Amount available for allocations.
See § 1940.552(a) of this subpart. RA appropriated for existing projects will first be used to replace contracts expiring each fiscal year and for the first few months of the following fiscal year. This is done to assure continued RA funding. RA units not needed for replacement purposes will be used for existing multiple family housing projects experiencing servicing problems.
(b) Basic formula criteria, data source and weight.
No formula or weighted criteria is used to allocate replacement RA. The basic allocation for replacement RA will be made based on the following:
(1) Criteria.
This allocation is based on the estimated need to replace RA contracts expiring from the depletion of funds.
(2) Date source.
The most accurate and current information available from FmHA or its successor agency under Public Law 103-354 computerized data sources.
(c) Basic formula allocation.
While no formula will be used, the basic allocation will be made to each State according to the need determined using the basic criteria.
(g) Reserve.
See § 1940.552(g) of this subpart. The National Office maintains a reserve adequate to compensate for the differences between actual and projected replacement activity. Units will be administratively distributed for existing housing to either satisfy previously unidentified replacement needs or address servicing situations. Units will be distributed to any State when the Administrator determines that additional allocations are necessary and appropriate.
(h) Pooling of funds.
See § 1940.552(h) of this subpart. Units will be pooled at the Administrator's discretion.