RHIIP Listserv #369: New Add-on and/or a Special Fee Available to Assist in Implementing a Homeless Preference

The Office of Multifamily Housing Programs at HUD has been working steadily to increase the number of assisted properties with homeless preferences and previously homeless admissions to our housing inventory. In recognition of the time and effort spent by management agents to establish and administer a homeless preference, we are pleased to announce the availability of a new management fee add-on and special fee.

Per the memorandum from Deputy Assistant Secretary Priya Jayachandran, owners of Multifamily assisted housing can now negotiate an add-on and/or a special fee with their property management company to assist in implementing a homeless preference.

• A special management fee will be permitted during a nine (9) month start-up period to enable owners and management agents to create and implement the homeless preference process. The special fee amount is $2.50 per unit per month (PUPM). (For example, a 100-unit property can collect up to $2.50 x 100 units x 9 months = $2,250.)
• Once the homeless preference is in place, management agents may collect a monthly add-on fee as long as at least one previously homeless individual or household is admitted to a particular property during a one-year period. The add-on fee is $2.00 PUPM. (For example, a 100-unit property can collect up to $2.00 x 100 units x 12 months = $2,400 in a one-year period.)

Processes for requesting, approving, and monitoring the management fees are detailed in the memorandum.

Please contact Carissa Janis with any questions at Carissa.l.janis@hud.gov or 202-402-2487.