BROADCAST EMAIL – Regulatory Update

July 7, 2017

Yesterday, Rural Development (RD) published Procedural Notice (PN) 500 announcing final management fees for Fiscal Year (FY) 2018. Management fees will vary from state to state because RD has based the increase on HUD’s Operating Cost Adjustment Factor (OCAF) which varies based on location in the country and is applied to each state’s current maximum fee. (Click here for the chart that provides states’ management fee adjustment for FY 2018.)

As a reminder of the background on this issue, CARH proposed that OCAF should be the base and that additional add-on fees should also be part of the management fee calculation. The additional add-on fees have not yet been agreed to by RD. Although management fees for FYs 2016-2018 have been based on OCAF, we will continue to advocate for CARH’s entire proposal. We believe that the proposal will provide some certainty and consistency on fees in the future. Further we continue to recommend that a survey be conducted every five years to determine if the OCAF needed some further adjustment.

Please contact the CARH national office at carh@carh.org or 703-837-9001 should you have questions or concerns.