16c. Funding Restrictions and Renewal

Ineligible Uses of Funds

Funding under this program may not be used for costs related to:

  • Expenses related to the provision and operation of housing.
  • Employment of Service Coordinator in Section 202 properties with a Project Rental Assistance Contract (PRAC). Owners of Section 202 PRAC properties may obtain funding for a Service Coordinator by requesting an increase in their PRAC payment consistent with Handbook 4381.5 REVISION-2, CHANGE-2, Chapter 8. Section 202 properties with a Project Rental Assistance Contract (PRAC).
  • Full cost of the Service Coordinator position when the project has available funds (i.e., Section 8 operating funds, residual receipts, excess income and/or grant funds) that may be used to pay for a Service Coordinator. “Available funds” are those that require HUD approval for their use and are not needed to meet critical property needs.
  • Renewal or extension of Service Coordinator grants provided under the Service Coordinators in Multifamily Housing Program CFDA 14.191.
  • Salary or any other expenses for Service Coordinator aides.
  • Reimbursement of expenses associated with the following items:
    1. Supervision performed by property management staff
    2. Cost overruns associated with creating private office space
    3. Usual audit and legal fees
    4. Increasing management fees
    5. Service Coordinator-related training courses for property management staff who do not directly provide Service Coordination. Owners must use their management fees to pay this expense
    6. Paying PAC members for their services