[Code of Federal Regulations]
[Title 24, Volume 4]
[Revised as of April 1, 2008]
From the U.S. Government Printing Office via GPO Access
[CITE: 24CFR990.300]

[Page 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 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 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.