PDF HUD Releases 2018 Public Housing Management Fee Table

Financial Management Division Office of Public and Indian Housing

HUD Releases 2018 Public Housing Management Fee Table

The Financial Management Division (FMD) has released the Calendar Year 2018 80th percentile management fees for public housing. Table 1 represents the 80th percentile of management fee paid in HUD's multifamily housing programs based on the most recently filed 2016 Annual Financial Statements (AFS). Nationally, the 80th percentile management fee is $60.46 per unit month (PUM). In accordance with PIH Notice 2007-9, PHAs may use the amounts from this table to establish the "reasonable" fee charged to each project. In some field offices, the fee decreased from 2017 schedule. These field offices are identified in Note 2 of Table 1. However, Table 1 has been adjusted to reflect the higher of the 2017-2018 fee schedules. As a reminder, the amounts in the fee table have already been adjusted for occupancy. In other words, the amounts published represent fees paid for each occupied unit/allowable vacancy. Small PHAs that elect to implement asset management without a Central Office Cost Center (COCC) are governed by "reasonable" total administrative costs1. Table 2 represents the 80th percentile of administrative costs paid in HUD's multifamily housing programs based on the 2016 AFS. In some field offices, the administrative costs dropped from 2018 actual schedule. These field offices are identified in Note 1 of Table 2. However, Table 2 has been adjusted to reflect the higher of the 2017 or 2018 cost schedules. These fee tables are effective from January 1, 2018.

1 Section 9.2, Changes in Financial Management and Reporting for Public Housing Agencies Under the New Operating Fund Rule (24 CFR Part 990); Supplement to HUD Handbook 7475.1 REV., CHG-1, Financial Management Handbook

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Financial Management Division Office of Public and Indian Housing

TABLE 1: 2018 Schedule of 80th Percentile of Property Management Fees in FHA Housing

by Field Office, for Unlimited Dividend, Limited Dividend and Non-Profit Ownership Types (Effective 1/1/2018)1

Field Office

Mgmt. Fee Range (PUM)

Field Office

Mgmt. Fee Range (PUM)

Albuquerque Anchorage Atlanta2 Baltimore2 Birmingham2 Boston Buffalo Caribbean Charleston Chicago Cincinnati2 Cleveland Columbia Columbus Denver2 Des Moines Detroit Fort Worth2 Grand Rapids Greensboro Hartford Honolulu2 Houston Indianapolis Jackson Jacksonville2 Kansas City2 Knoxville2 Las Vegas

$49.89 $71.01 $57.68 $61.16 $54.86 $83.31 $60.70 $60.21 $50.89 $73.09 $54.97 $54.58 $54.79 $56.61 $58.82 $51.31 $51.02 $50.29 $53.75 $56.89 $80.17 $69.02 $49.98 $60.55 $63.44 $61.63 $48.60 $50.37 $63.11

Little Rock Los Angeles Louisville Manchester2 Miami Milwaukee Minneapolis Nashville New Orleans New York Newark Oklahoma City Omaha Philadelphia Phoenix Pittsburgh Portland Providence Richmond Sacramento2 San Antonio San Diego2 San Francisco Seattle2 Shreveport2 St. Louis Tampa2 Tulsa2 Washington, DC

$56.04 $84.08 $59.95 $71.39 $67.18 $53.21 $62.59 $54.40 $55.17 $78.03 $74.31 $54.11 $49.08 $54.77 $55.81 $64.43 $56.52 $74.07 $64.39 $70.52 $52.80 $75.81 $74.62 $53.66 $55.33 $48.46 $61.63 $48.17 $63.52

Notes:

1. The above fees have been adjusted to reflect the average vacancy loss for each market, i.e., the rates shown reflect the fees paid for occupied units.

2.In the field offices where the fee decreased from the 2018 actual non-substitute schedule, the PHA may use the amount from the 2017 schedule. The chart above shows the higher of the two schedules. Using the 2017 schedule, the management fee for these field offices would have been as follows: Atlanta ($56.01),Baltimore ($59.85),Birmingham ($54.40), Cincinnati ($50.92), Denver ($57.25), Fort Worth ($49.64), Honolulu ($65.70), Jacksonville ($57.22), Kansas City ($48.48), Knoxville ($49.91), Manchester ($66.27), Sacramento ($66.21), San Diego ($69.90), Seattle ($53.38), Shreveport ($53.40), Tampa ($61.10), Tulsa ($48.14).

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Financial Management Division Office of Public and Indian Housing

TABLE 2: 2018 Schedule of 80th Percentile Administrative Costs in FHA Housing by Field Office for Unlimited Dividend, Limited Dividend and Non-Profit Ownership Types (Effective 1/1/2018)

Field Office

Admin. Fee Range (PUM)

Field Office

Admin. Fee Range (PUM)

Albuquerque1 Anchorage1 Atlanta Baltimore Birmingham Boston Buffalo Caribbean Charleston Chicago Cincinnati Cleveland1 Columbia1 Columbus Denver Des Moines Detroit Fort Worth Grand Rapids1 Greensboro Hartford Honolulu1 Houston Indianapolis Jackson Jacksonville Kansas City Knoxville Las Vegas Notes:

$180.36 $228.37 $174.02 $211.05 $164.27 $282.39 $200.35 $214.20 $154.88 $241.24 $161.79 $187.05 $179.13 $174.01 $193.94 $150.21 $170.75 $166.93 $193.91 $143.59 $274.22 $236.83 $183.81 $158.60 $181.04 $176.70 $156.98 $147.00 $184.76

Little Rock1 Los Angeles Louisville Manchester Miami Milwaukee Minneapolis Nashville New Orleans New York Newark Oklahoma City1 Omaha1 Philadelphia Phoenix Pittsburgh Portland1 Providence Richmond1 Sacramento1 San Antonio San Diego1 San Francisco Seattle1 Shreveport1 St. Louis Tampa1 Tulsa Washington, DC

$174.44 $252.13 $184.00 $197.07 $191.67 $179.79 $179.52 $176.05 $186.94 $257.88 $286.64 $173.00 $192.34 $222.89 $194.05 $192.79 $196.57 $288.03 $184.58 $266.71 $204.02 $222.15 $284.42 $204.15 $195.88 $169.28 $217.20 $140.94 $231.37

1. In the field offices where the fee dropped from the 2018 actual schedule, the PHA may use the amount from the 2017 actual nonsubstitute schedule. The chart above shows the higher of the two schedules. Using the 2018 schedule, the administrative costs for these field offices would have been as follows: Albuquerque ($173.13), Anchorage ($228.12), Cleveland ($180.14), Columbia ($175.10), Grand Rapids ($187.76), Honolulu ($236.52), Little Rock ($171.63), Oklahoma City ($164.67), Omaha (167.50), Portland ($189.64), Richmond ($183.65), Sacramento ($245.88), San Diego ($213.81), Seattle ($196.34), Shreveport ($193.63), Tampa ($211.14).

2. The amounts included in the above table are based on the 80th percentile administrative costs for all non-profit, limited dividend and unlimited dividend FHA properties, by field office, excluding such programs as cooperatives and nursing homes. This information is based on 2016 Annual Financial Statements (the most recent available data) and includes the following line items: 6203-Conventions and Meetings, 6204-Management Consultants, 6210-Advertising and Marketing, 6235-Apartment Resale Expense (Coops), 6250-Other Renting Expenses, 6310-Office Salaries, 6311-Office Expenses, 6312-Office or Model Rent, 6320Management Fee, 6330-Manager or Superintendent Salaries, 6331-Adminstrative Rent Free Unit, 6340-Legal Expense-Project, 6351-Bookkeeping Fees/Accounting Services, 6390-Miscellaneous Administrative Expenses, 6711-Payroll Taxes (Administrative Share), and 6723-Health Insurance and Other Employee Benefits (Administrative Share). HUD will review and update this table as needed.

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