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 Public and Indian Housing Office awarded the Housing Authority City of Montgomery $1,309,291 under the Public Housing Operating Fund (CFDA 14.850) on January 1, 2026.

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

The period of performance runs through December 31, 2032, with place of performance in Montgomery, AL 36104. The award is a formula grant based on HUD calculation forms (HUD-52723 and HUD-52722) rather than competitive selection, allocated pursuant to Section 9 of the U.S. Housing Act of 1937, as amended. The Housing Authority City of Montgomery holds an Annual Contribution Contract and Cooperative Agreement with HUD that qualifies it for this recurrent funding stream.

The Public Housing Operating Fund is a $5 billion nationwide program providing operating subsidies to approximately 6,000 housing authorities serving 1,590,321 public housing residents in 902,436 households, with 44 percent elderly and 35 percent with children. The fund maintains services and provides minimum operating reserves for public housing stock nationwide.

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.