The U.S. Department of Agriculture’s Rural Development (RD) published Procedural Notice (PN) 567 announcing final management fees for Fiscal Year (FY) 2023.
This year, RD used HUD’s FY 2022 Income Limits as the base management fee, versus their Operating Cost Adjustment Factors (OCAF), which have been used since FY 2015. To view the chart listing your state’s FY 2023 management fee adjustment, visit pages 54 and 55 of Attachment 3-F, Chapter 3 of HB-2-3560. In most instances, properties will see a much higher increase than in years past.
The PN includes allowable add-on fees of $5.00 per unit per month, see section 3.8 B.2 (page 16) of the PN for the list of add-on fees. Of note is the $5.00 add-on fee for properties where there are multiple subsidies (i.e., reporting requirements in addition to and separate from LIHTCs or project-based Section-8).