The public housing operating fund (PH opfund) provides operating subsidies to housing authorities (has) to assist in funding the operating and maintenance expenses of their dwellings, in accordance…

The Department of Housing and Urban Development's Public and Indian Housing Office awarded the Housing Authority City of Montgomery $732,624 under the Public Housing Operating Fund formula grant on January 1, 2026.

The grant funds day-to-day operational and maintenance expenses of public housing, including management and operations, routine and preventative maintenance, anti-crime and security activities, energy costs, resident supportive services, insurance, debt service, and administrative program implementation. The Housing Authority City of Montgomery operates public housing serving low-income residents in the Montgomery metropolitan area.

The period of performance runs through December 31, 2032, with place of performance in Montgomery, Alabama. As a Public Housing Agency maintaining an Annual Contribution Contract and Cooperative Agreement with HUD, the Housing Authority City of Montgomery qualifies for this recurrent formula-based funding stream, allocated using HUD calculation forms HUD-52723 and HUD-52722 rather than competitive selection. The Public Housing Operating Fund itself is a $5 billion nationwide program providing operating subsidies to approximately 6,000 housing authorities to help maintain services and provide minimum operating reserves in accordance with Section 9 of the U.S. Housing Act of 1937, as amended.

Activities

Operating funds are used to fund day-to-day operational expenses associated with public housing as well as the administrative and program implementation expenses that public housing agencies (PHAS) are required to undertake under the 1937 housing act and program regulations. Such activities include management and operations, routine and preventative maintenance, anti-crime, anti-drug and security activities, operating costs for privately owned public housing units within mixed-finance projects, energy costs, resident supportive services, insurance, debt service and costs associated with administration and program implementation. Turnkey III projects are funded for units under the final lease purchase agreement for closing out the program. To support these activities, there is continued modernization of the information technology platforms. PHAS have access to web-based platforms that utilize real-time data to provide insight into their portfolios. PHAS can obtain metrics on their funding levels, occupancy rates, and the number of families served through rental assistance.

Expected outcomes

As a result of the activities performed, this program is expected to assist in funding the operating and maintenance expenses. This may include increased occupancy in public housing, decreased energy costs through regular maintenance and energy performance contracting and leverage federal resources. In addition to addressing the department's strategic goals of: • addressing the need for quality affordable rental homes by maintaining or improving upon the 96% occupancy rate of habitable units; • promoting housing as a platform to improve quality of life through supportive services, crime prevention efforts and resident engagement activities; and • helping to build inclusive communities free from discrimination by facilitating the implementation of affirmatively furthering fair housing measures.

Intended beneficiaries

The operating fund provides for the operation and maintenance of low-income housing projects to phas/projects. IT was created to assist housing authorities in providing decent and safe rental housing for eligible low-income families or individuals, the elderly, and persons with disabilities. A HA determines eligibility based on 1) annual gross income; 2) a person on who is elderly, a person with a disability, or as a family; and 3) U.S. Citizenship or eligible immigration status.

Subrecipient activities

The subrecipient activities are unknown at the time of award.