HUD has announced that if Congress does not extend the FY12 Appropriations Act one-year salary cap of $155,500 for public housing agency (PHA) executives, it will propose a tiered system of maximum salaries for FY13 and beyond. The FY12 appropriations limit applies only to the federal contribution to PHA executive salaries, not to bonuses and other forms of compensation; more could be provided to executives from other sources.
In August 2011, prior to the Appropriations Act, HUD collected data from each PHA regarding the 2010 compensation provided to their top five highest compensated employees. HUD reports that 97% earned less than $155,500 in total cash compensation; 93% earned less than $125,000. The average was $82,299. According to HUD, 21% of the highest paid PHA executives earned more than the median for nonprofit executives of similar-sized organizations.
HUD proposes to align PHA compensation with the tiers of the federal government pay system. The caps will be based on geographic location and the number of units administered by the PHA. The proposal is as follows:
- More than 1,250 units: $147,857 - $155,500.
- Between 250 and 1,249 units: $106,369 - $125,926.
- Fewer than 250 units: $74,628 - $88,349.
Another change proposed by HUD is to base the caps on total cash compensation, not just salary. HUD notes that many PHA executives receive a significant share of their compensation through bonuses.
The document displays the results of the 2010 data collected from PHAs by HUD region and PHA size.
The HUD document is attached.