| ID | Status | Date | Public/Private | Industry | AHACPA Contact |
|---|---|---|---|---|---|
| #7305 | Closed | public | Multifamily | Les Sparks |
|
Can you point me to any guidance on what HUD considers allowable legal expenses at the project level? We have a client where the managing agent is the defendant in a complaint filed with the Labor Commission in California (re: independent contractor paid via rent concession vs. employee entitled to minimum wage). The attorney hired to handle the complaint has billed the property. The managing agent thinks it is a project expense. My gut is this is either a management company or entity level expense. |
|
|
From Les Sparks: I wish there was a citation to include here. It would be a Godsend to have. Unfortunately, I have never found it. My gut agrees with yours. From the start the project is not the decision maker here, the management agent is. They made a mistake or didn’t. However, being realistic, i will not be able to point to any language specifically prohibiting this. Then it becomes a source of contention. Just consider how large it is relative to materiality then make a choice on how to proceed. I wish I had better advice. Les |