[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: 24CFR990.295]



[Page 725]

 

                 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 I_Operating Subsidy for Properties Managed by Resident 

                     Management Corporations (RMCs)

 

Sec.  990.295  Resident Management Corporation operating subsidy.





    (a) General. This part applies to all projects managed by a Resident 

Management Corporation (RMC), including a direct funded RMC.

    (b) Operating subsidy. Subject to paragraphs (c) and (d) of this 

section, the amount of operating subsidy that a PHA or HUD provides a 

project managed by an RMC shall not be reduced during the three-year 

period beginning on the date the RMC first assumes management 

responsibility for the project.

    (c) Change factors. The operating subsidy for an RMC-managed project 

shall reflect changes in inflation, utility rates, and consumption, as 

well as changes in the number of units in the resident managed project.

    (d) Exclusion of increased income. Any increased income directly 

generated by activities by the RMC or facilities operated by the RMC 

shall be excluded from the calculation of the operating subsidy.

    (e) Exclusion of technical assistance. Any technical assistance the 

PHA provides to the RMC will not be included for purposes of determining 

the amount of funds provided to a project under paragraph (b) of this 

section.

    (f) The following conditions may not affect the amounts to be 

provided under this part to a project managed by an RMC:

    (1) Income reduction. Any reduction in the subsidy or total income 

of a PHA that occurs as a result of fraud, waste, or mismanagement by 

the PHA; and

    (2) Change in total income. Any change in the total income of a PHA 

that occurs as a result of project-specific characteristics when these 

characteristics are not shared by the project managed by the RMC.

    (g) Other project income. In addition to the operating subsidy 

calculated in accordance with this part and the amount of income derived 

from the project (from sources such as rents and charges), the 

management contract between the PHA and the RMC may specify that income 

be provided to the project from other legally available sources of PHA 

income.