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:
- Supervision performed by property management staff
- Cost overruns associated with creating private office space
- Usual audit and legal fees
- Increasing management fees
- 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
- Paying PAC members for their services