Project Based AccountingProject Based Accounting& Asset Management& Asset Management

Julie Miles, Financial AnalystJulie Miles, Financial Analyst

HUD-Kansas City, KSHUD-Kansas City, KS

913-551-5529913-551-5529

11

AgendaAgenda

All PHAsAll PHAs Project-Based Budgeting & AccountingProject-Based Budgeting & Accounting

Small PHAs (Less Than 250 PH Units)Small PHAs (Less Than 250 PH Units) Single AMPsSingle AMPs Multiple AMPsMultiple AMPs

Large PHAs (250+ PH Units)Large PHAs (250+ PH Units) Decliners Accelerate AM Implementation for Decliners Accelerate AM Implementation for

Stop-LossStop-Loss

22

Asset ManagementAsset Management

Asset Management

(AM)

Project-Based Management

(PBM)

Project-Based Accounting

(PBA)

Project-Based Budgeting

(PBB)

33

PBB & PBAPBB & PBA

Project LevelProject Level BudgetingBudgeting AccountingAccounting Financial Statement ReportingFinancial Statement Reporting

Applies To All Programs & Revenue Applies To All Programs & Revenue Sources Supporting Projects Under ACCSources Supporting Projects Under ACC

44

PBMPBMFocus on Operation & Management of ProjectFocus on Operation & Management of ProjectAddress Project Needs With Project ResourcesAddress Project Needs With Project ResourcesDay-to-Day Responsibilities & Decision-Making Day-to-Day Responsibilities & Decision-Making at Project Level—not Central Officeat Project Level—not Central OfficeProject-Specific:Project-Specific: MarketingMarketing LeasingLeasing Resident ServicesResident Services Routine and Preventative MaintenanceRoutine and Preventative Maintenance Lease EnforcementLease Enforcement Protective ServicesProtective Services

55

AMAM

AM = PBM + PBB + PBAAM = PBM + PBB + PBA

PHA-Wide Policy & DirectionPHA-Wide Policy & Direction

Long-Term Capital & Administrative PlanningLong-Term Capital & Administrative Planning

Property Management PerformanceProperty Management Performance

Review of Entity-wide Financial InformationReview of Entity-wide Financial Information

Long-Term Viability of PropertiesLong-Term Viability of Properties

Risk ManagementRisk Management

Property Repositioning & ReplacementProperty Repositioning & Replacement

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ApplicabilityApplicabilityPBB & PBAPBB & PBA RequiredRequired for All PHAs for All PHAs FYBs 7/1/07 & LaterFYBs 7/1/07 & Later

PBM & AM PBM & AM RequiredRequired FY 11 FY 11 PHAs With 250 or More PH UnitsPHAs With 250 or More PH Units Accelerate AM Implementation for Stop LossAccelerate AM Implementation for Stop Loss

PBM & AM PBM & AM OptionalOptional PHAs With Less Than 250 PH Units & 1 AMPPHAs With Less Than 250 PH Units & 1 AMP Elect AM Implementation for Stop Loss IncentiveElect AM Implementation for Stop Loss Incentive

77

PBBPBB

Budget Budget RequiredRequired for Each AMP for Each AMPBudget Budget RecommendedRecommended for Central Office for Central Office Cost Center (COCC)Cost Center (COCC) Stop-Loss Stop-Loss RequiresRequires COCC Budget COCC BudgetBoard Approval of Each AMP on 1 Board Approval of Each AMP on 1 ResolutionResolutionUnless Troubled, Budget Submission to Unless Troubled, Budget Submission to HUD Not RequiredHUD Not RequiredSubmit Board Resolution to HUD Field Submit Board Resolution to HUD Field OfficeOffice

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PBB FormatPBB FormatRevise Existing Budget FormsRevise Existing Budget FormsNo Uniform Budget Format, but Must:No Uniform Budget Format, but Must: Reconcile to FDSReconcile to FDS Allow Comparison to Actual Revenues & Allow Comparison to Actual Revenues &

ExpensesExpenses Include All Revenues & Expenses of the Include All Revenues & Expenses of the

Operating & Capital FundsOperating & Capital Funds Include Estimate of Operating Subsidy Include Estimate of Operating Subsidy

ProrationProration Include Fungibility Transfers (ex. CFP for Include Fungibility Transfers (ex. CFP for

Operations)Operations) Include Anticipated Uses of Excess CashInclude Anticipated Uses of Excess Cash

99

New FDS FormatNew FDS Format

AMP Level Financial ReportingAMP Level Financial Reporting

Operating Fund and Capital Fund Operating Fund and Capital Fund ReportingReporting at AMP Level vs. PHA Level at AMP Level vs. PHA Level

New ColumnsNew Columns AMP & COCC Columns Replace Low-Rent AMP & COCC Columns Replace Low-Rent

and CFP Columnsand CFP Columns Elimination Column Subtracts Internal Elimination Column Subtracts Internal

COCC/AMP Transactions from Entity-Wide COCC/AMP Transactions from Entity-Wide TotalsTotals

1010

New FDS Line ItemsNew FDS Line Items

Fee Revenues & ExpensesFee Revenues & Expenses

More Expense DetailMore Expense Detail Other Operating-AdministrativeOther Operating-Administrative Ordinary Maintenance & Operations-Contract Ordinary Maintenance & Operations-Contract

CostsCosts Insurance PremiumsInsurance Premiums

Memo AccountsMemo Accounts Measure Revenue LossMeasure Revenue Loss Unit Month DetailUnit Month Detail CFP Expenditure DataCFP Expenditure Data

1111

New FDS—PHA LevelNew FDS—PHA Level

$ $ ThousandsThousands

ProgramProgram

TotalTotalTotal Total AMPsAMPs

S8 S8 HCVHCV

Rural Rural HousingHousing

COCCCOCC Elim.Elim.

AssetsAssets $10,100$10,100 $300$300 $750$750 $400$400   -$50-$50 $11,500$11,500

LiabilitiesLiabilities $4,850$4,850 $200$200 $250$250 $300$300 - $50- $50 $5,550$5,550

EquityEquity $5,250$5,250 $100$100 $500$500 $100$100    $5,950$5,950

RevenueRevenue $1,730$1,730 $1,000$1,000 $575$575 $270$270 -$250-$250 $3,325$3,325

ExpensesExpenses $1,360$1,360 $990$990 $560$560 $240$240 -$250-$250 $2,900$2,900

Net Net IncomeIncome $370$370 $10$10 $15$15 $30$30 $425$425

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New FDS—AMP LevelNew FDS—AMP Level

$ Thousands$ ThousandsAsset Management ProjectsAsset Management Projects

TotalTotalProject Project 11

Project Project 22

Project Project 33

Other Other AMPAMP

AssetsAssets $3,434$3,434 $3,254$3,254 $3,130$3,130 $282$282 $10,100$10,100

LiabilitiesLiabilities $1,649$1,649 $1,522$1,522 $1,503$1,503 $176$176 $4,850$4,850

EquityEquity $1,785$1,785 $1,732$1,732 $1,627$1,627 $106$106 $5,250$5,250

                 

RevenueRevenue $588$588 $527$527 $536$536 $78$78 $1,730$1,730

ExpensesExpenses $462$462 $429$429 $421$421 $47$47 $1,360$1,360

Net IncomeNet Income $126$126 $98$98 $115$115 $31$31 $370$370

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PBA-CFPPBA-CFP

CFP for AMPs Only—Except COCC CFP CFP for AMPs Only—Except COCC CFP Management FeeManagement Fee

Unobligated Grants: Actual CostsUnobligated Grants: Actual Costs

Actual Costs for Unobligated Grant Prior to AMActual Costs for Unobligated Grant Prior to AM

Future Grants: Fee-for-Service if Implement AMFuture Grants: Fee-for-Service if Implement AM

Transfers to Operations Allowed with Current Transfers to Operations Allowed with Current Regulatory LimitsRegulatory Limits

Work Item Fungibility ContinuesWork Item Fungibility Continues

Future Transition of BLIs to FDSFuture Transition of BLIs to FDS

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PBA-PHASPBA-PHAS

New PHAS AssessmentNew PHAS Assessment

Starting FYE 6/30/08Starting FYE 6/30/08

AMP-Level Score Rolled Up to PHA-Level AMP-Level Score Rolled Up to PHA-Level ScoreScore

First Year Transitional ScoresFirst Year Transitional Scores

First Year CFP Bonus Based on Previous First Year CFP Bonus Based on Previous PHAS ScorePHAS Score

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Stop-LossStop-Loss

Transition CalculationTransition Calculation FFY 04 Subsidy Eligibility if New Operating FFY 04 Subsidy Eligibility if New Operating

Subsidy Formula ImplementedSubsidy Formula Implemented 5-Year Loss Phase-in5-Year Loss Phase-in

Year 1 CY 07 5% Limit = 95% Add-onYear 1 CY 07 5% Limit = 95% Add-on

Year 2 CY 08 24% Limit = 76% Add-onYear 2 CY 08 24% Limit = 76% Add-on

Year 3 CY 09 43% Limit = 57% Add-onYear 3 CY 09 43% Limit = 57% Add-on

Year 4 CY 10 62% Limit = 38% Add-onYear 4 CY 10 62% Limit = 38% Add-on

Year 5 CY 11 81% Limit = 19% Add-onYear 5 CY 11 81% Limit = 19% Add-on

Stop-Loss Limits Loss to Applicable Percent Stop-Loss Limits Loss to Applicable Percent in Year Stop-Loss Approvedin Year Stop-Loss Approved

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Stop-Loss Due DatesStop-Loss Due Dates

Year 1 Due 10/15/07Year 1 Due 10/15/07

Year 2 Due 4/15/08Year 2 Due 4/15/08

Year 3 Due 10/15/08Year 3 Due 10/15/08

Year 4 Due 10/15/09Year 4 Due 10/15/09

Year 5 Due 10/15/10Year 5 Due 10/15/10

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Stop-Loss for Large PHAsStop-Loss for Large PHAs

250 PH Units or More250 PH Units or More

COCCCOCC

Multiple AMPsMultiple AMPs

Traditional Asset ManagementTraditional Asset Management

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Stop-Loss for Small PHAsStop-Loss for Small PHAs

Less Than 250 PH UnitsLess Than 250 PH Units

Alternate Asset Management (No COCC) if PUM Alternate Asset Management (No COCC) if PUM Admin Doesn’t Exceed Admin ThresholdAdmin Doesn’t Exceed Admin Threshold

Admin Threshold Published in Supplement to PIH Admin Threshold Published in Supplement to PIH Notice 2007-09, Financial Management Handbook, Notice 2007-09, Financial Management Handbook, Table 9.1Table 9.1

Admin Threshold Updated Annually, Schedule of Admin Threshold Updated Annually, Schedule of Management Fees, Table 2, 80Management Fees, Table 2, 80thth Percentile Percentile Administrative CostsAdministrative Costs

http://www.hud.gov/offices/pih/programs/ph/am/http://www.hud.gov/offices/pih/programs/ph/am/accounting.cfmaccounting.cfm

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PUM Admin CalculationPUM Admin Calculation

+ Admin Salaries+ Admin Salaries+ Admin Benefits+ Admin Benefits+ Outside Management Expense+ Outside Management Expense+ Other Admin+ Other Admin+ Admin Costs CFP BLI 1408 Mgmt Improvements+ Admin Costs CFP BLI 1408 Mgmt Improvements÷ ÷ Occupied Units & Approved VacanciesOccupied Units & Approved Vacancies

***Calculation Excludes Audit Expense & Excludes ***Calculation Excludes Audit Expense & Excludes Limited VacanciesLimited Vacancies

2020

Appeal for Changing Market Appeal for Changing Market ConditionsConditions

May Increase Subsidy if Vacant Unit Months Exceeded May Increase Subsidy if Vacant Unit Months Exceeded Limited VacanciesLimited Vacancies

Decreases PUM Admin CostDecreases PUM Admin Cost

Appeal With OpSub Calculation or by OpSub Revision Appeal With OpSub Calculation or by OpSub Revision DeadlineDeadline List of Unit Numbers & Periods VacantList of Unit Numbers & Periods Vacant Narrative Explaining Specific Changing Market Conditions Narrative Explaining Specific Changing Market Conditions

(ex. Population Decline, Competing Project, etc.)(ex. Population Decline, Competing Project, etc.) Narrative Explaining Marketing EffortsNarrative Explaining Marketing Efforts Certify No Waiting List for Unit Months in AppealCertify No Waiting List for Unit Months in Appeal Certify Unit Months in Appeal Ready to Rent (not Certify Unit Months in Appeal Ready to Rent (not

Downtime or Make-Ready)Downtime or Make-Ready)2121

AMAM

250+ PH Units250+ PH Units

To Qualify for Stop-Loss, Decliners Less To Qualify for Stop-Loss, Decliners Less Than 250 PH Units & Exceeds Admin Than 250 PH Units & Exceeds Admin LimitLimit

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AMAM

COCCCOCC

$4 PUM AM OpSub Add-on if 2+ AMPs$4 PUM AM OpSub Add-on if 2+ AMPs

Monitor Cash Flow at AMP LevelMonitor Cash Flow at AMP Level

Bank Account Per AMP Not Required Bank Account Per AMP Not Required

Replace Cost Allocation with Fee-for-Replace Cost Allocation with Fee-for-ServiceService

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AM—Balance Sheet AllocationAM—Balance Sheet Allocation

Required 1Required 1stst Year of AM Year of AM

Assign to AMP/COCC/Other Program if Assign to AMP/COCC/Other Program if Direct Relationship ExistsDirect Relationship Exists

Assign Equipment to Controlling Assign Equipment to Controlling AMP/COCC/Other ProgramAMP/COCC/Other Program

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Legacy Costs & Associated Legacy Costs & Associated Unfunded LiabilitiesUnfunded Liabilities

Allocate to AMP, COCC & Other Allocate to AMP, COCC & Other Programs to Ensure All Bear Programs to Ensure All Bear Proportionate Share—May Consider Proportionate Share—May Consider Ability to PayAbility to Pay

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Compensated AbsencesCompensated AbsencesAllocate Based on Current Employee Allocate Based on Current Employee AssignmentAssignmentTransfer Associated Liability & Liquid Asset if Transfer Associated Liability & Liquid Asset if Employee Transfers—A/P & A/R if No Liquid Employee Transfers—A/P & A/R if No Liquid Asset AvailableAsset AvailableCOCC May Setup A/R from AMPs & Other COCC May Setup A/R from AMPs & Other Programs for COCC Share At Initial Balance Programs for COCC Share At Initial Balance Sheet AllocationSheet AllocationNot Subject to Excess Cash RulesNot Subject to Excess Cash RulesEliminate A/R & A/P on FDSEliminate A/R & A/P on FDS

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Pension & Other Post-Pension & Other Post-Employment Benefits (OPEBs)Employment Benefits (OPEBs)Current & Retired EmployeesCurrent & Retired Employees

Pension, Retiree Medical & Other Pension, Retiree Medical & Other Related ExpensesRelated Expenses

Accounting & Contributions Based on Accounting & Contributions Based on Retirement PlanRetirement Plan

Allocate Annual Contribution Based on Allocate Annual Contribution Based on Employee AssignmentEmployee Assignment

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Other Post-Employment Other Post-Employment Benefits (OPEBs)Benefits (OPEBs)

Historically Pay-As-You-GoHistorically Pay-As-You-Go

GASB 45 Requires Liability RecordingGASB 45 Requires Liability Recording

Annual Required Contribution (ARC)Annual Required Contribution (ARC) Normal Annual CostNormal Annual Cost Share of Unfunded Liability—Not to Share of Unfunded Liability—Not to

Exceed 30 YearsExceed 30 Years

Charge to COCC for All EmployeesCharge to COCC for All Employees

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OPEBs (Continued)OPEBs (Continued)Non-COCC Employee Share: AMPs & Non-COCC Employee Share: AMPs & Other Programs Transfer Liquid Other Programs Transfer Liquid Assets Annually to COCC to Cover Assets Annually to COCC to Cover ARCARCCOCC Employee Share Covered by COCC Employee Share Covered by Fees EarnedFees EarnedA/P & A/R if No Liquid Assets A/P & A/R if No Liquid Assets AvailableAvailableNot Subject to Excess Cash RulesNot Subject to Excess Cash Rules

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Other LiabilitiesOther LiabilitiesLawsuits, Legal Actions, Lead-Based Lawsuits, Legal Actions, Lead-Based Paint, AsbestosPaint, Asbestos

Record at COCCRecord at COCC

Recover from AMPs & Other Programs Recover from AMPs & Other Programs Based on Reasonable MethodBased on Reasonable Method

Not Subject to Excess Cash RulesNot Subject to Excess Cash Rules

A/P & A/R if No Liquid Assets AvailableA/P & A/R if No Liquid Assets Available

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AM—Balance Sheet AllocationAM—Balance Sheet Allocation

Restricted AssetsRestricted Assets

Real & Personal Property Assigned to Real & Personal Property Assigned to COCCCOCC Restricted Assets Subject to Federal Restricted Assets Subject to Federal

Program RulesProgram Rules Future Guidance on COCC Asset DisposalFuture Guidance on COCC Asset Disposal

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AM—Working CapitalAM—Working CapitalAssign Cash to COCC Equivalent of Up to Assign Cash to COCC Equivalent of Up to 6 Months Estimated Property 6 Months Estimated Property Management, Bookkeeping, and AM Fees Management, Bookkeeping, and AM Fees Based on 100% Occupancy of All ACC Based on 100% Occupancy of All ACC UnitsUnitsNot Subject to Excess Cash RestrictionsNot Subject to Excess Cash RestrictionsIf Cash Not Available at AMP, May Record If Cash Not Available at AMP, May Record Receivable/LiabilityReceivable/Liability Receivable/Liability Must Be Paid Prior to Receivable/Liability Must Be Paid Prior to

Payment of Additional AM Fees or AMP Payment of Additional AM Fees or AMP Fungibility TransferFungibility Transfer

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Cost AssignmentCost Assignment

Front Line (AMP) ExpensesFront Line (AMP) Expenses Related to Direct Operation of the PropertyRelated to Direct Operation of the Property

vs. Management Fee (COCC) Expensesvs. Management Fee (COCC) Expenses Related to Corporate SupportRelated to Corporate Support

GuidanceGuidance Asset Management Planning Document Asset Management Planning Document

Attachment BAttachment B PIH Notice 2007-9, Financial Management PIH Notice 2007-9, Financial Management

Handbook Supplement Table 7.2Handbook Supplement Table 7.2 Multifamily Management Agent Handbook, HUD Multifamily Management Agent Handbook, HUD

4381.5, Chapter 64381.5, Chapter 63333

Central Front-Line AdminCentral Front-Line AdminReasonably Prorate Direct Labor, Supplies & Reasonably Prorate Direct Labor, Supplies & Equipment to AMPsEquipment to AMPs

Prorated Costs Include Equipment Purchased Prorated Costs Include Equipment Purchased with Capital or Operating Funds remain AMP with Capital or Operating Funds remain AMP Program AssetsProgram Assets

Document Proration MethodDocument Proration Method

Adjust to Actual Costs at Year-End At MinimumAdjust to Actual Costs at Year-End At Minimum

Cannot Exceed Cost if Performed On-siteCannot Exceed Cost if Performed On-site

Can’t Prorate if On-site Staff Also Perform TaskCan’t Prorate if On-site Staff Also Perform Task

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Prohibited Central Front-Line AdminProhibited Central Front-Line AdminSupervision Cost of Front-Line Admin—Except for Supervision Cost of Front-Line Admin—Except for Central Waiting Lists, Central Resident Services, and Central Waiting Lists, Central Resident Services, and Central Protective ServicesCentral Protective ServicesProcurement/Warehousing—Unless Cheaper than Procurement/Warehousing—Unless Cheaper than Project-Based Procurement/Warehousing & HUD Project-Based Procurement/Warehousing & HUD ApprovesApprovesRent Collection—Unless Listed in Employee’s Job Rent Collection—Unless Listed in Employee’s Job DutiesDutiesResident Services—Unless Can’t Reasonably Track Resident Services—Unless Can’t Reasonably Track Costs to AMPsCosts to AMPsProtective Services—Unless Can’t Reasonably Track Protective Services—Unless Can’t Reasonably Track Costs to AMP & Plan for Future Direct Deployment if Costs to AMP & Plan for Future Direct Deployment if Extensive Central ServicesExtensive Central Services

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Central Front-Line MaintenanceCentral Front-Line MaintenanceTechnical & Routine MaintenanceTechnical & Routine Maintenance

Must Use Fee-for-ServiceMust Use Fee-for-Service

Begins 2Begins 2ndnd Year of PBB/PBA Year of PBB/PBA

Actual Services OnlyActual Services Only

Can’t Exceed Market RatesCan’t Exceed Market Rates

Supporting Documents for RatesSupporting Documents for Rates

Can’t Prorate Unrecovered Costs Due to Under-Can’t Prorate Unrecovered Costs Due to Under-Utilization or Unreasonable Low RatesUtilization or Unreasonable Low Rates

Can’t Charge Projects for Costs of Centralized Can’t Charge Projects for Costs of Centralized Supervisor or Admin AssistantsSupervisor or Admin Assistants

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Shared Resource CostsShared Resource Costs

Spread Cost to AMPs Receiving ServiceSpread Cost to AMPs Receiving Service

Few AMPs Sharing Resource vs. All AMPsFew AMPs Sharing Resource vs. All AMPs

If Staff Shared between AMPs & COCC, If Staff Shared between AMPs & COCC, Prorate Based on Time Spent on AMPs & Prorate Based on Time Spent on AMPs & COCCCOCC

Limited to Reasonable Labor RatesLimited to Reasonable Labor Rates

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COCCCOCC

Not Subject to Program Income Rules if Not Subject to Program Income Rules if Fees ReasonableFees Reasonable State and Local Restrictions May Still ApplyState and Local Restrictions May Still Apply

May Include Business ActivitiesMay Include Business Activities Example: Management Fees for Non-Profit or Example: Management Fees for Non-Profit or

Private PropertiesPrivate Properties

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FeesFees

Property ManagementProperty Management

BookkeepingBookkeeping

Asset ManagementAsset Management

CFP ManagementCFP Management

HCV Program ManagementHCV Program Management

Other PIH & HUD Program ManagementOther PIH & HUD Program Management

Non-Federal Program ManagementNon-Federal Program Management

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Property Management FeeProperty Management Fee

Multifamily Property Management Fee Multifamily Property Management Fee Schedule—Federally Subsidized Schedule—Federally Subsidized PropertiesProperties

80th Percentile Property Management 80th Percentile Property Management Fees—For-Profit and Limited Divided FHA Fees—For-Profit and Limited Divided FHA PropertiesProperties

Other Local Market DataOther Local Market Data

4040

Property Management FeeProperty Management FeeReasonable in 2Reasonable in 2ndnd + Years + Years Additional 2 Year Extension AvailableAdditional 2 Year Extension Available Stop-Loss Requires Reasonableness in 1Stop-Loss Requires Reasonableness in 1stst Year Year

Earned Monthly for Occupied & HUD-approved Earned Monthly for Occupied & HUD-approved Vacancy, but Not Limited VacanciesVacancy, but Not Limited VacanciesCOCC Retains Difference Between Fee COCC Retains Difference Between Fee Charged to AMP and Fee Paid for Private Charged to AMP and Fee Paid for Private Management, Including Mixed Finance Projects.Management, Including Mixed Finance Projects.COCC Earns Fee if Manages Mixed Finance COCC Earns Fee if Manages Mixed Finance PropertyPropertyDemo/Dispo: 75% Year 1, 50% Year 2Demo/Dispo: 75% Year 1, 50% Year 2Demo: 25% Year 3Demo: 25% Year 3

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Bookkeeping FeeBookkeeping FeeUp to $7.50 PUMUp to $7.50 PUM

Reasonable in 2Reasonable in 2ndnd + Years + Years Additional 2 Year Extension Available Additional 2 Year Extension Available Stop-Loss Requires Reasonableness in 1Stop-Loss Requires Reasonableness in 1stst Year Year

Earned Monthly for Occupied & HUD-approved Earned Monthly for Occupied & HUD-approved Vacancy, but Not Limited VacanciesVacancy, but Not Limited Vacancies

Cannot charge if Project Accounting Functions Cannot charge if Project Accounting Functions Also Performed On-site & Charged as Also Performed On-site & Charged as Front-line/AMP CostFront-line/AMP Cost

Can Also Charge to HCV ProgramCan Also Charge to HCV Program

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Asset Management FeeAsset Management Fee

11stst Year—Up to $10 PUM Year—Up to $10 PUM

22ndnd+ Years—Up to $10 PUM + Years—Up to $10 PUM andand Not To Not To Exceed Excess Cash CalculationExceed Excess Cash Calculation

Earned Monthly for All ACC UnitsEarned Monthly for All ACC Units

Earned For Demo/Dispo Units Until VacantEarned For Demo/Dispo Units Until Vacant

PHAs With 250+ PH UnitsPHAs With 250+ PH Units

PHAs With Less than 250 PH Units & 2+ PHAs With Less than 250 PH Units & 2+ AMPs & COCCAMPs & COCC

No AccrualsNo Accruals

4343

CFP Management FeeCFP Management Fee

Up to 10% to Admin BLI 1410 & Counts Up to 10% to Admin BLI 1410 & Counts Toward 10% Admin LimitToward 10% Admin Limit

Available to Earn & Draw When Grant Available to Earn & Draw When Grant Awarded & AvailableAwarded & Available

Prior to AM Implementation & Beginning Prior to AM Implementation & Beginning With FFY 2007, Can’t Draw Unobligated With FFY 2007, Can’t Draw Unobligated Funds Under Admin BLI 1410 of Open Funds Under Admin BLI 1410 of Open CFP Grants as CFP Management FeeCFP Grants as CFP Management Fee

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CFP Management Fee CFP Management Fee (Continued)(Continued)

FFY 2007 Charge Management Fees FFY 2007 Charge Management Fees Commencing with Start of First Year Commencing with Start of First Year PBB/PBAPBB/PBA May Have Partial Year Actual Cost & May Have Partial Year Actual Cost &

Partial Year FeesPartial Year Fees

Subject to Fee Reasonableness in 2Subject to Fee Reasonableness in 2ndnd Year Year FYEs 6/30/09, 9/30/09, 12/31/09, 3/31/10FYEs 6/30/09, 9/30/09, 12/31/09, 3/31/10

4545

HCV Program Management FeeHCV Program Management Fee

VoluntaryVoluntary

Higher of 20% of HCV Admin Revenue or Higher of 20% of HCV Admin Revenue or $12 PUM per Voucher Leased$12 PUM per Voucher Leased

Guidance HCV Program Management Guidance HCV Program Management Fee vs. Front-Line CostsFee vs. Front-Line Costs PIH Notice 2007-9, Financial Management PIH Notice 2007-9, Financial Management

Handbook Supplement Table 7.2Handbook Supplement Table 7.2

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Other Management FeesOther Management Fees

Development ActivitiesDevelopment Activities 3% Total Project Budget3% Total Project Budget Up to 6% if HUD ApprovedUp to 6% if HUD Approved

Other PIH & HUD Grants ManagementOther PIH & HUD Grants Management Up to 15% Grant Amount, if No Fee Rate Up to 15% Grant Amount, if No Fee Rate

EstablishedEstablished

Non-Federal Program ManagementNon-Federal Program Management Voluntary Fee-for-ServiceVoluntary Fee-for-Service

4747

Fee Payment & DocumentationFee Payment & Documentation

Invoice RecommendedInvoice Recommended

Documentation Supporting How Fees Documentation Supporting How Fees EarnedEarned OccupancyOccupancy Fee ReasonablenessFee Reasonableness

4848

FungibilityFungibility

11stst Year AM: Full Fungibility AMP/COCC Year AM: Full Fungibility AMP/COCC

22ndnd Years AM: Fungible Only Between AMPs & Years AM: Fungible Only Between AMPs & Subject to Subject to PositivePositive Excess Cash Restriction Excess Cash Restriction

33rdrd+ Years AM: Fungible Only Between AMPs + Years AM: Fungible Only Between AMPs & Subject to & Subject to 1-Month1-Month Excess Cash Excess Cash RestrictionRestriction

No Restriction on Transfers from COCC to No Restriction on Transfers from COCC to AMPsAMPs

FDS Must Be Submitted & AcceptedFDS Must Be Submitted & Accepted

4949

Excess Cash Calculation: 2Excess Cash Calculation: 2ndnd Year YearBased on Prior Year FDSBased on Prior Year FDSAdjust Excess Cash Limit for Audited FDS Adjust Excess Cash Limit for Audited FDS SubmissionSubmission

+ Unrestricted Cash+ Unrestricted Cash+ Cash-Tenant Security Deposits+ Cash-Tenant Security Deposits+ Cash-Restricted for Payment of Current Liabilities+ Cash-Restricted for Payment of Current Liabilities+ Total Receivables, Net of Allowance for Doubtful + Total Receivables, Net of Allowance for Doubtful

AccountsAccounts+ Unrestricted Investments+ Unrestricted Investments+ Interprogram Due From+ Interprogram Due From- Current LiabilitiesCurrent Liabilities

***Must Be Positive*****Must Be Positive**5050

Excess Cash Calculation: 3Excess Cash Calculation: 3rdrd+ Years+ YearsBased on Prior Year FDSBased on Prior Year FDSAdjust Excess Cash Limit for Audited FDS Adjust Excess Cash Limit for Audited FDS SubmissionSubmission

+ Unrestricted Cash+ Unrestricted Cash+ Cash-Tenant Security Deposits+ Cash-Tenant Security Deposits+ Cash-Restricted for Payment of Current Liabilities+ Cash-Restricted for Payment of Current Liabilities+ Total Receivables, Net of Allowance for Doubtful + Total Receivables, Net of Allowance for Doubtful

AccountsAccounts+ Unrestricted Investments+ Unrestricted Investments+ Interprogram Due From+ Interprogram Due From- Current Liabilities- Current Liabilities- Average Monthly Operating Expenses- Average Monthly Operating Expenses

5151

Excess Cash UsesExcess Cash Uses

AMP ReserveAMP Reserve

Transfer to other AMPsTransfer to other AMPs

Pay Asset Management Fee to COCC, but No Pay Asset Management Fee to COCC, but No Loan/TransferLoan/Transfer

Other Eligible PurposesOther Eligible Purposes Develop New Units-to Extent Allowed Under Develop New Units-to Extent Allowed Under

Program RulesProgram Rules Legal Costs Incurred Prior to AM Legal Costs Incurred Prior to AM Legacy CostsLegacy Costs

5252

ResourcesResourcesPIH Notice 2006-14PIH Notice 2006-14http://www.hudclips.org/sub_nonhud/html/pdfforms/06-14PIH.dochttp://www.hudclips.org/sub_nonhud/html/pdfforms/06-14PIH.doc

PIH Notice 2006-35PIH Notice 2006-35http://www.hudclips.org/sub_nonhud/html/pdfforms/06-35PIH.dochttp://www.hudclips.org/sub_nonhud/html/pdfforms/06-35PIH.doc

Stop-Loss Submission KitStop-Loss Submission Kithttp://www.hud.gov/offices/pih/programs/ph/am/docs/stoplosskit.pdfhttp://www.hud.gov/offices/pih/programs/ph/am/docs/stoplosskit.pdf

Asset Management Planning GuideAsset Management Planning Guidehttp://hudstage.hud.gov/offices/pih/programs/ph/am/docs/pham.pdfhttp://hudstage.hud.gov/offices/pih/programs/ph/am/docs/pham.pdf

PIH Notice 2007-9PIH Notice 2007-9http://www.hudclips.org/sub_nonhud/cgi/pdfforms/07-9PIHSupp.dochttp://www.hudclips.org/sub_nonhud/cgi/pdfforms/07-9PIHSupp.doc

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