A PHA with 250 or more units must budget and account for each project separately under GAAP

ph.financial.project_based_budgeting_and_accounting · v1.0.0

A PHA that owns and operates 250 or more dwelling rental units under title I of the 1937 Act, including units managed by a third party but excluding Section 8 units, must operate using an asset management model and must implement project-based management, project-based budgeting and project-based accounting. A PHA that owns and operates fewer than 250 units may treat its entire portfolio as a single project, but if it does it does not receive the asset management fee add-on. A covered PHA must develop and maintain a system of budgeting and accounting for each project in a manner that allows analysis of the actual revenues and expenses associated with each property, applied to all programs and revenue sources that support projects under the annual contributions contract including the Operating Fund and the Capital Fund. The information budgeted and accounted for at project level must include all data needed to complete project-based financial statements in accordance with generally accepted accounting principles, including revenues, expenses, assets, liabilities and equity, and the PHA must maintain all records supporting those transactions. Where the PHA centralises a function that directly supports a project it must charge each project using a fee-for-service approach, for the actual services received and only to the extent the amounts are reasonable. Each PHA must maintain project-based budgets and fiscal year-end financial statements prepared in accordance with GAAP and must make them available for review on request by interested members of the public, must distribute them to the chairman and each member of the board of commissioners and to such other state and local public officials as HUD specifies, and must submit some or all of them to HUD in the manner and time HUD prescribes. All PHA financial management systems, reporting and monitoring must comply with 2 CFR part 200, every PHA receiving assistance under part 990 must submit an acceptable audit complying with 2 CFR part 200 subpart F, and the PHA must retain all documents related to financial management and activities funded under the Operating Fund for five fiscal years after the fiscal year in which the funds were received.

Confidence

high

Effective from

2005-09-19

Consequence model

contract remedy

Last reviewed

2026-08-30