Date Published: October 2012
Salaries and/or wages for a staff person responsible for NSP program implementation are eligible expenses and may be charged to either administration or activity delivery costs. The allocation of staff-time charges as activity delivery costs is limited to costs that add value or help advance the implementation of a specific NSP-funded eligible project or activity. When charging staff costs to activity delivery, the staff person must keep a timesheet and a project specific activity report. The costs associated should be allocated, on an increment of time (i.e. hourly or a portion of) appropriately on a per project basis. Eligible activity delivery costs may include costs related to the sale of the property, identifying income eligible homebuyers, obtaining appraisals, construction oversight and management, loan underwriting and other activities. Section 570.206 of the CDBG regulations which apply to NSP states that, "Staff and overhead costs directly related to carrying out activities [are] eligible under 570.201 through 570.204, since those costs are eligible as part of such activities."
Grantees can charge indirect costs (such as paid leave time, sick time, etc.) to the NSP grant so long as they are eligible and they are charged in accordance with a cost allocation plan that complies with Federal requirements.
Further, for employees who work on multiple programs, such as HOME or ESG, their staff salary must be charged to the NSP funds on a prorated basis. If they spend 50% or their time working on NSP-related tasks, and the balance of their time carrying out other duties not related to the NSP program, then only 50% of their time can be charged to the NSP program.