BROADCAST EMAIL – Regulatory Update

Late Friday afternoon,  Rural Development (RD) published a Procedural Notice (PN) 539 announcing final management fees for Fiscal Year (FY) 2021. 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. (View Attachment 3-F, Chapter 3 of HB-2-3560 (page 55-56) for the chart listing each state’s management fee adjustment for FY 2021.)  After considerable discussion with members, CARH has supported the use of OCAF.

Friday’s PN includes allowable add-on fees. See section 3.8 B.2 (page 3-16 of the PN). The majority of add-on fees will be $5.00 per unit per month (PUPM). Of particular interest to many CARH members is a $5.00 add-on fee for properties where there are multiple subsidies. CARH has been raising add-on fees with RD since at least 2014 and we appreciate RD addressing this industry concern.

While CARH would like to thank all of the members of the Management Committee for their continued assistance on this issue over the last several years, we would like to especially thank those members who developed the initial add-on proposals, served on subcommittees relating to this issue, and continued talks with RD including Bill Shumaker, Kevin Flynn, Bob Miller, Pam Borton, Mike Holoman, Matt Melnick, Joan Franken, Judy Joehl, Dianne Hunt, and Babbie Jaco.

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