[Code of Federal Regulations]

[Title 24, Volume 4]

[Revised as of April 1, 2006]

From the U.S. Government Printing Office via GPO Access

[CITE: 24CFR990.280]



[Page 723-724]

 

                 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 H_Asset Management

 

Sec.  990.280  Project-based budgeting and accounting.



    (a) All PHAs covered by this subpart shall develop and maintain a 

system of budgeting and accounting for each



[[Page 724]]



project in a manner that allows for analysis of the actual revenues and 

expenses associated with each property. Project-based budgeting and 

accounting will be applied to all programs and revenue sources that 

support projects under an ACC (e.g., the Operating Fund, the Capital 

Fund, etc.).

    (b)(1) Financial information to be budgeted and accounted for at a 

project level shall include all data needed to complete project-based 

financial statements in accordance with Accounting Principles Generally 

Accepted in the United States of America (GAAP), including revenues, 

expenses, assets, liabilities, and equity data. The PHA shall also 

maintain all records to support those financial transactions. At the 

time of conversion to project-based accounting, a PHA shall apportion 

its assets, liabilities, and equity to its respective projects and HUD-

accepted central office cost centers.

    (2) Provided that the PHA complies with GAAP and other associated 

laws and regulations pertaining to financial management (e.g., OMB 

Circulars), it shall have the maximum amount of responsibility and 

flexibility in implementing project-based accounting.

    (3) Project-specific operating income shall include, but is not 

limited to, such items as project-specific operating subsidy, dwelling 

and non-dwelling rental income, excess utilities income, and other PHA 

or HUD-identified income that is project-specific for management 

purposes.

    (4) Project-specific operating expenses shall include, but are not 

limited to, direct administrative costs, utilities costs, maintenance 

costs, tenant services, protective services, general expenses, non-

routine or capital expenses, and other PHA or HUD-identified costs which 

are project-specific for management purposes. Project-specific operating 

costs also shall include a property management fee charged to each 

project that is used to fund operations of the central office. Amounts 

that can be charged to each project for the property management fee must 

be reasonable. If the PHA contracts with a private management company to 

manage a project, the PHA may use the difference between the property 

management fee paid to the private management company and the fee that 

is reasonable to fund operations of the central office and other 

eligible purposes.

    (5) If the project has excess cash flow available after meeting all 

reasonable operating needs of the property, the PHA may use this excess 

cash flow for the following purposes:

    (i) Fungibility between projects as provided for in Sec.  990.205.

    (ii) Charging each project a reasonable asset management fee that 

may also be used to fund operations of the central office. However, this 

asset management fee may be charged only if the PHA performs all asset 

management activities described in this subpart (including project-based 

management, budgeting, and accounting). Asset management fees are 

considered a direct expense.

    (iii) Other eligible purposes.

    (c) In addition to project-specific records, PHAs may establish 

central office cost centers to account for non-project specific costs 

(e.g., human resources, Executive Director's office, etc.). These costs 

shall be funded from the property-management fees received from each 

property, and from the asset management fees to the extent these are 

available.

    (d) In the case where a PHA chooses to centralize functions that 

directly support a project (e.g., central maintenance), it must charge 

each project using a fee-for-service approach. Each project shall be 

charged for the actual services received and only to the extent that 

such amounts are reasonable.