Is there any guidance on how Housing Authorities are to handle the 2012 operating subsidy settlements they received recently? I guess specifically, should those funds be accounted for in the Public Housing program or in a nonfederal program such as Business Activities? The Housing Authority’s attorney has told them that those are nonfederal funds and to keep them out of the Public Housing program but the Authority’s ACC contract with HUD defines “Operating Receipts shall mean all rents, revenues, income, and receipts from, out of, or in connection with the ownership or operation of such project”. They would not have received those settlement funds if they didn’t have Public Housing so my reading of the ACC contract tells me the settlement funds are Public Housing’s.

My concern is that NAHRO is telling everyone that HUD is either recapturing or offsetting funds again and if the Authority incorrectly includes it in Public Housing, it increases their reserve levels to be offset.

The head of a local field office emailed an Executive Director’s question with “follow what your attorney says” and another local field office staff has stated he is not allowed to answer any questions on the matter to ask the fee accountant or auditor.

Any guidance you can offer on this would be greatly appreciated.