HCV STS Target Calculation

At its core, the STS target calculation is straightforward: divide the total HAP budget by the appropriate Per Unit Cost (PUC) to determine the agency’s annual HCV capacity, then take 90 percent of that figure to establish the STS target. For the purposes of STS calculations, keep in mind that:

  • The Total HAP Budget includes funding for special purpose vouchers – even those that are not included in the MTW Funding Calculations.
  • The PUC is adjusted each year to account for inflation, and MTW agencies may request additional adjustments once every three years.

 

Total HAP Budget
PUC
times

90%

equals

STS Target

 

However, multiple steps are required to ensure that annual inflation is properly accounted for in the calculation.

Prior Year Adjusted PUC*

times
equals

Current Year Adjusted PUC**


Total Budget Authority of all HCV HAP Funds in Calendar Year***

divided by

Current Year Adjusted PUC**

equals

Annual HCV Capacity


Annual HCV Capacity

times

90%
 

equals

HCV STS Target


*In Year 1, use the PUC for the calendar year prior to MTW designation; for subsequent years, use the “current Year Adjusted PUC” from the prior year.
**The “Current Year Adjusted PUC” calculated here will become the “Prior Year Adjusted PUC” for the following year’s STS calculation.
***Includes funding for all special purpose vouchers, regardless of whether they are included in the agency’s MTW Funding.

Example

To determine whether 227 families was enough to meet the STS requirement, the Pleasant Knoll Housing Authority MTW Lead needed to calculate the HCV STS target. The Lead found that the prior year’s PUC was $500, the current year’s Renewal Funding Inflation Factor (RFIF) was 1 percent, and the Total budget authority of HCV HAP was $115,000.

The MTW Lead calculated the STS target as:

Current Year Adjusted PUC $500 X 1.1 = $505
Annual HCV Capacity $125,000
$505
= 248
HCV STS Target 248 X 90% = 223

 

The Lead determined that Pleasant Knoll Housing Authority needed to be serving a minimum of 223 families, and made a note to remember that the ‘prior year PUC’ to use next year will be this year’s adjusted PUC: $505.

Adjustments to the HCV Annual Capacity

MTW agencies may request an adjustment to the PUC, above and beyond the adjustments provided by applying the RFIF, not more than once every three calendar years. The request must justify the adjustment (e.g., rising costs, special market conditions, public housing repositioning). HUD will determine whether, and by how much, to adjust the PUC.