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3 -LC. ADMINISTRATIVE FEES AND COSTS <br />In the past, the ways in which administrative fees and costs were funded were different for public <br />housing and housing choice voucher FSS programs, and the use of such funding was restricted to <br />the applicable program. In the Consolidated Appropriations Act of 2014, however, funding <br />streams for the PH FSS and HCV FSS programs were combined, and all FSS funding is now <br />awarded through one NOFA. Use of this funding is no longer restricted to the applicable <br />program—funding now may be used to serve both PH and HCV FSS participants. <br />Funding will be awarded through a Grant Agreement and disbursed through HUD's Line of <br />Credit Control System (LOCCS), similar to previous PH FSS awards; instead of an amendment <br />to the PHA's Annual Contributions Contract (ACC), which was previously used for <br />HCV awards. <br />PH FSS and HCV FSS funds awarded in prior years are still restricted to the applicable program, <br />Rental Assistance Demonstration (RAD) programs excepted. Funding differences regarding <br />previous years' funding is specified below. <br />Public Housing FSS Program <br />For public housing FSS programs, the performance funding system (PFS), provided under <br />section 9(a) of the 1937 Act provides for the reasonable and eligible administrative costs that the <br />PHA incurs in carrying out the program only when funds have been appropriated. However, a <br />PHA may use other resources for this purpose [24 CFR 984.302(a)]. <br />In other words, the PHA may fund reasonable and eligible administrative costs in the FSS <br />program from the Operating Fund. However, these expenses will only be reimbursed in the <br />operating subsidy when a current appropriations act allows it. In addition, the PHA may fund <br />reasonable and eligible administrative costs from the Capital Fund. Administrative staffing costs <br />may also be funded through HUD or other grant or foundation sources. This includes FSS <br />Coordinator grants when available. <br />Housing Choice Voucher FSS Program <br />In the housing choice voucher program, administrative fees are paid to PHAs for HUD -approved <br />costs associated with the operation of an FSS program. These administrative fees are established <br />by Congress and subject to appropriations [24 CFR 984.302(b)]. <br />In addition, administrative fees for HUD -approved costs not specifically related to the operation <br />of the FSS program may be used to cover these costs associated with the administration of FSS <br />[see Notice PIH 93-24 E-7 and E-8]. <br />© Copyright 2014 by Nan McKay & Associates <br />Unlimited copies may be made for internal use. <br />Page 3-3 <br />Model FSS Action Plan 9/1/14 <br />