[Code of Federal Regulations]
[Title 24, Volume 4]
[Revised as of April 1, 2001]
From the U.S. Government Printing Office via GPO Access
[CITE: 24CFR990.404]

[Page 700]
 
                 TITLE 24--HOUSING AND URBAN DEVELOPMENT
 
CHAPTER IX--OFFICE OF ASSISTANT SECRETARY FOR PUBLIC AND INDIAN HOUSING, 
               DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
 
PART 990--THE PUBLIC HOUSING OPERATING FUND PROGRAM--Table of Contents
 
      Subpart D--Resident Management Corporations Operating Subsidy
 
Sec. 990.404  Retention of excess revenues.

    (a) Any income generated by a resident management corporation that 
exceeds the income estimated for the income category involved as 
specified in the RMC's management contract must be excluded in 
subsequent years in calculating:
    (1) The operating subsidy provided to a HA under part 990, subpart 
A.
    (2) The funds provided by the HA to the resident management 
corporation.
    (b) The management contract must specify the amount of income 
expected to be derived from the project (from sources such as rents and 
charges) and the amount of income to be provided to the project from the 
other sources of income of the HA (such as operating subsidy under part 
990, subpart A, interest income, administrative fees, and rents). These 
income estimates must be calculated consistent with HUD's administrative 
instructions. Income estimates may provide for proration of anticipated 
project income between the corporation and the PHA, based upon the 
management and other project-associated responsibilities (if any) that 
are to be retained by the PHA under the contract.