Announcements, Homelessness

HUD’s New Policy Permits Management Fees in Multifamily Housing with Homeless Preference

U.S. Department of Housing and Urban Development
 

On October 26, 2016, the U.S. Department of Housing and Urban Development (HUD) issued Allowable Special and Add-on Management Fees to Implement a Homeless Preference. According to the memo, Multifamily Regional Centers and Satellite Offices might be allowed to include an add-on management fees by incorporating a homeless preference into their Tenant Selection Plan (TSP). The fees can cover a broad range of activities that help to create a homeless preference, such as dedicated staff time to identify and engage local HUD-funded Continuum of Care (CoC), homeless providers and to amend the TSP. 

HUD is allowing two types of fees. The first fee is a special management, up to $4,500, to assist in the implementation of the homeless preference. The second fee is an add-on cost, up to $3,600 per year, that property manager can collect for serving an individual experiencing homelessness. Both fees cannot be collected simultaneously, and property manager cannot increase tenant’s rent to pay for the management fees. 

The memo outlines the steps a property manager can take to be allowed to collect a management fee.

Click here to read the memo.

 
 

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