[Code of Federal Regulations]
[Title 24, Volume 4]
[Revised as of April 1, 2007]
From the U.S. Government Printing Office via GPO Access
[CITE: 24CFR982.155]

[Page 581-582]
 
                 TITLE 24--HOUSING AND URBAN DEVELOPMENT
 
CHAPTER IX--OFFICE OF ASSISTANT SECRETARY FOR PUBLIC AND INDIAN HOUSING, 
 
PART 982_SECTION 8 TENANT BASED ASSISTANCE: HOUSING CHOICE VOUCHER PROGRAM--
 
   Subpart D_Annual Contributions Contract and PHA Administration of 
                                 Program
 
Sec.  982.155  Administrative fee reserve.

    (a) The PHA must maintain an administrative fee reserve (formerly 
``operating reserve'') for the program. There is a single administrative 
fee reserve for the PHA program. The PHA must credit to the 
administrative fee reserve the total of:
    (1) The amount by which program administrative fees paid by HUD for 
a PHA fiscal year exceed the PHA program administrative expenses for the 
fiscal year; plus
    (2) Interest earned on the administrative fee reserve.
    (b)(1) The PHA must use funds in the administrative fee reserve to 
pay program administrative expenses in excess of administrative fees 
paid by HUD for a PHA fiscal year. If funds in the administrative fee 
reserve are not needed to cover PHA administrative expenses (to the end 
of the last expiring funding increment under the consolidated ACC), the 
PHA may use these funds for other housing purposes permitted by State 
and local law. However, HUD may prohibit use of the funds for certain 
purposes.
    (2) The PHA Board of Commissioners or other authorized officials 
must establish the maximum amount that may be charged against the 
administrative fee reserve without specific approval.
    (3) If the PHA has not adequately administered any Section 8 
program, HUD may prohibit use of funds in the administrative fee 
reserve, and may direct the PHA to use funds in the reserve to improve 
administration of the

[[Page 582]]

program or to reimburse ineligible expenses.

(Approved by the Office of Management and Budget under control number 
2577-0169)

[60 FR 34695, July 3, 1995, as amended at 60 FR 45661, Sept. 1, 1995; 64 
FR 26642, May 14, 1999]