Multifamily Housing Program Financial Management Toolkit

9a. Allowable Costs (§200.403)

To be allowable, a cost must meet all of the following requirements:

  • Included within the description of eligible activities in the applicable HUD regulations
  • Incurred directly or indirectly for the benefit of an eligible HUD client
  • Comply with any limitations or exclusions set forth in these principles or as specified in the HUD grant award process (and codified in the grant agreement)
  • Be treated consistently, determined in accordance with generally accepted accounting principles (GAAP) and documented adequately
  • Determined to be necessary, reasonable, allocable to the HUD grant, and otherwise in conformance with the general criteria for allowable costs set forth in 2 CFR 200 Subpart E.
  • Not be included as a cost or used to meet cost sharing or matching requirements of any other federally-financed program in the current year or prior periods.