Section 40. Program funding

Under the ACC, funding shall be made available for (i) housing assistance payments and (ii) administrative expenses incurred for operation of the program. The ASA shall provide two types of funds which may be used by the administrative agent to pay for expenses incurred for operation of the program:

1. Preliminary expense reimbursement. An administrative agent shall be allowed preliminary expense reimbursement during the first 12 months and any extensions of the operation of the program or until each rental housing unit is leased, whichever comes first. To be eligible for reimbursement, the expense must be directly related to the first year of the operation of the program, e.g., the purchase of nonexpendable equipment, salaries, employee benefits, office supplies, rent, telephone charges, copying costs, etc. Prior to implementation of the program, the local administrative agency shall prepare a proposed budget setting forth the allocation of funds among the various categories. This proposed budget is reviewed by the authority. Preliminary expenses shall be reimbursable only if, and to the extent that, actual expenses are incurred. Payments shall be made in by the authority based on the leasing of the units as documented by the administrative agent.

2. Administrative fee income. Administrative fee income is a set fee paid by the authority to the administrative agent for each rental housing unit under lease each month. Adequate records shall be maintained by the administrative agent evidencing costs incurred in the administration of the program. Adjustments to the administrative fee will be made if a surplus of income over expenses occurs. Annually, on July 1 or such other date as shall be agreed to by the authority and the administrative agent, redetermination shall be made regarding the amount of fee income which will be required to fund expenses expected to be incurred in the operation of the program. Such redetermination shall be made based upon a budget which may be submitted by the administrative agent and approved by the authority.

Historical Notes

Derived from VR400-02-0006 § 4, eff. July 1, 1989; amended, Volume 11, Issue 17, eff. May 1, 1995.

Statutory Authority

§ 36-55.30:3 of the Code of Virginia.