The following are acceptable management fees, add-on fees and computer/bookkeeping service costs for multifamily projects. Data includes fees charged for HUD-insured, unassisted properties, whose last Physical Assessment Subsystem (PASS) scores were greater than 60 and whose last Financial Assessment Subsystem (FASS) scores were greater than 70. The surveyed properties' management certification type was "independent" and the management fees were "residential."

MANAGEMENT FEE:

Basic Rate - Per Unit Per Month (PUPM)

$50.00

ADD-ON FEE(S):
Per Unit Per Month (PUPM)
A maximum of $20 PUPM for any eligible combination of fees:

Adverse Neighborhood* Conditions (See Handbook 4381.5, Chapter 3)	$5.00
Remote Location Projects	$3.00
Scattered Site Projects (3 or more scattered sites)	$2.00
Homeless Preference	$2.00
1 to 15 Units in Property	$10.00
16 to 30 Units in Property	$8.00
High Density Family Properties (as defined in 4381.5, Figure 3-4)	$3.00
Cooperative Projects	$5.00
Section 202 and Disabled 811's with Predominately Special Clientele	$3.00
Mixed Subsidy Projects (Properties operating with multiple subsidy types, i.e., Project-based Section 8 with LIHTC; Section 236, 221(d)(3) BMIR, 202/811 & Section 231)	$3.00
Better Buildings Challenge*	Up to $4.00

* Note: An adverse neighborhood is defined in Chapter 3 of HUD Handbook 4381.5 as having a high incidence of crime or vandalism, or a large concentration of deteriorated or substandard housing.

Computer and Bookkeeping Fees: Computer and Bookkeeping Fees are treated as a project expense. The expense, however, must not exceed the actual cost the project would incur if a bookkeeper were on site. See HUD Handbook 4381.5, Chapter 3 for more information.

Special Fees: Special Fees may be allowed for a limited time, in accordance with HUD Handbook 4381.5, Paragraph 3.6. HUD prior written approval is required, without exception.

* Better Buildings Challenge: Eligible expenses incurred by BBC property Owners/Agents in support of achieving BBC goals for reducing energy and water consumption. $1/PUPM for each of the following the 0/A is implementing at a property: Operations and Maintenance, Tenant Engagement, Data Collection and Benchmarking. BBC-eligible Add-On fees may not exceed $5,000/year and are only available for the shorter of 10 years or the end of the BBC period for the sponsor's portfolio. For more specific guidance: https://www.hudexchange.info/programs/better-buildings-challenge/

For more information on acceptable residential management fees for subsidized properties, refer to Chapter 3 of HUD Handbook 4381.5 or contact the Southwest Multifamily Region staff.

*Management fees are expressed in dollars per unit per month (PUPM).