HUD Announces Homeless Preference Management Fees

HUD recently issued a memorandum to promote the use of homeless preferences at HUD-assisted sites. Multifamily Regional Centers or Satellite Offices may now approve both a special and an add-on management fee to cover eligible staff time expenses incurred by owners when establishing and managing a homeless preference.

A special management fee will be permitted during a nine-month start-up period to enable owners and management agents to create and implement the homeless preference process. The special fee amount is $2.50 per unit per month (PUPM), not to exceed $4,500 per property annually. Activities eligible for the special management fee include formalizing agreements and establishing a referral process with the local Continuum of Care (CoC) and homeless service providers, amending the Tenant Selection Plan, receiving applicant referrals from the CoC, and screening applicants to ensure they meet the property’s eligibility criteria.

Once the homeless preference is in place, management agents may collect a monthly add-on fee as long as at least one previously homeless individual or household is admitted to a particular property during a one-year period. The add-on fee is $2.00 PUPM, not to exceed $3,600 per property annually. Activities eligible for the add-on fee include facilitating a household’s move-in and access to necessary household items, as well as providing support, education, and tools to property management staff when coordinating services and resources during lease-up and the duration of tenancy.