Along with project-based funding, PHAs will be required to undertake project-based budgeting, the next building block of asset management.
Essentially, project-based budgeting means that operating budgets will now be completed at the project-level as opposed to the PHA or entity-wide level.
- Primarily, project-based budgets will be used for internal PHA planning purposes.
- Project-based budgets must be approved by the PHA's Board prior to the start of each fiscal year.
- However, these budgets will not be subject to HUD approval, except in the case of non-performing properties.
- HUD does prescribe a specific budget format although the budget should reconcile to the updated Financial Data Schedule or FDS.