[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: 24CFR990.305]



[Page 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.  990.305  Retention of excess revenues.



    (a) Any income generated by an RMC that exceeds the income estimated 

for the income categories specified in the RMC's management contract 

must be excluded in subsequent years in calculating:

    (1) The operating subsidy provided to a PHA under this part; and

    (2) The funds the PHA provides to the RMC.

    (b) The RMC's management contract must specify the amount of income 

that is 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 PHA (such as operating 

subsidy under this part, interest income, administrative fees, and 

rents). These income estimates must be calculated consistent with HUD's 

administrative instructions. Income estimates may provide for adjustment 

of anticipated project income between the RMC and the PHA, based upon 

the management and other project-associated responsibilities (if any) 

that are to be retained by the PHA under the management contract.

    (c) Any revenues retained by an RMC under this section may be used 

only for purposes of improving the maintenance and operation of the 

project, establishing business enterprises that employ residents of 

public housing, or acquiring additional dwelling units for lower income 

families. Units acquired by the RMC will not be eligible for payment of 

operating subsidy.