[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: 24CFR990.300]



[Page 725-726]

 

                 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.  990.300  Preparation of operating budget.



    (a) The RMC and the PHA must submit operating budgets and 

calculations of operating subsidy to HUD for approval in accordance with 

Sec.  990.200. The budget will reflect all project expenditures and will 

identify the expenditures related to the responsibilities of the RMC and 

the expenditures that are related to the functions that the PHA will 

continue to perform.

    (b) For each project or part of a project that is operating in 

accordance with the ACC amendment relating to this subpart and in 

accordance with a



[[Page 726]]



contract vesting maintenance responsibilities in the RMC, the PHA will 

transfer into a sub-account of the operating reserve of the PHA an 

operating reserve for the RMC project. When all maintenance 

responsibilities for a resident-managed project are the responsibility 

of the RMC, the amount of the reserve made available to a project under 

this subpart will be the per-unit cost amount available to the PHA 

operating reserve, excluding all inventories, prepaids, and receivables 

at the end of the PHA fiscal year preceding implementation, multiplied 

by the number of units in the project operated. When some, but not all, 

maintenance responsibilities are vested in the RMC, the management 

contract between the PHA and RMC may provide for an appropriately 

reduced portion of the operating reserve to be transferred into the 

RMC's sub-account.

    (c) The RMC's use of the operating reserve is subject to all 

administrative procedures applicable to the conventionally owned public 

housing program. Any expenditure of funds from the reserve must be for 

eligible expenditures that are incorporated into an operating budget 

subject to approval by HUD.

    (d) Investment of funds held in the reserve will be in accordance 

with HUD regulations and guidance.