# 990.235 PHAs that will experience a subsidy increase.
(a) For PHAs that will experience a gain in their operating subsidy, as determined in § 990.225, such increases will have a limit of 50 percent of the difference between the two funding levels in the first year following implementation of the formula contained in this part.
(b) The full amount of the increase in the operating subsidy level shall be realized in the second year following implementation of the formula contained in this part.
(c) For example, a PHA's subsidy increased from $900,000 under the formula in effect prior to implementation of the formula contained in this part to $1 million under the formula contained in this part using FY 2004 data. The difference would be calculated at $100,000 ($1 million−$900,000 = $100,000). In the first year, the subsidy increase would be limited to $50,000 (50 percent of the difference). Thus, in this example the PHA will receive the operating subsidy amount of this rule minus a transition-funding amount of $50,000 (the $100,000 difference between the two subsidy amounts minus the $50,000 transition amount).
(d) The schedule for a PHA whose subsidy would be increased is reflected in the table below.
| Fundingperiod | Increase limited to |
| --- | --- |
| Year 1 | 50 percent of the difference. |
| Year 2 | Full increase reached. |
[70 FR 54997, Sept. 19, 2005; 70 FR 61367, Oct. 24, 2005]