24 C.F.R. § 982.155
§ 982.155 Administrative fee reserve. (24 CFR Part 982)
Operative Text
(a) The PHA must maintain an administrative fee reserve (formerly “operating reserve”) for the program. There is a single administrative fee reserve for the PHA program. The PHA must credit to the administrative fee reserve the total of: (1) The amount by which program administrative fees paid by HUD for a PHA fiscal year exceed the PHA program administrative expenses for the fiscal year; plus (2) Interest earned on the administrative fee reserve. (b)(1) The PHA must use funds in the administrative fee reserve to pay program administrative expenses in excess of administrative fees paid by HUD for a PHA fiscal year. If funds in the administrative fee reserve are not needed to cover PHA administrative expenses (to the end of the last expiring funding increment under the consolidated ACC), the PHA may use these funds for other housing purposes permitted by State and local law. However, HUD may prohibit use of the funds for certain purposes. (2) The PHA Board of Commissioners or other authorized officials must establish the maximum amount that may be charged against the administrative fee reserve without specific approval. (3) If the PHA has not adequately administered any Section 8 program, HUD may prohibit use of funds in the administrative fee reserve, and may direct the PHA to use funds in the reserve to improve administration of the program or to reimburse ineligible expenses.
Section 982.155 requires Public Housing Authorities (PHAs) to maintain a dedicated administrative fee reserve for the Housing Choice Voucher program, funded by any surplus of HUD-paid administrative fees over actual program expenses, plus interest earned on the reserve balance. When administrative fees fall short of expenses in a given fiscal year, the PHA draws from this reserve to cover the gap. If reserve funds remain after all administrative needs are met through the end of the consolidated ACC funding period, the PHA may redirect them to other housing purposes allowed under state and local law — though HUD retains authority to restrict or redirect those funds, particularly if the PHA has not adequately administered a Section 8 program.
Plain English — not legal advice.
Under § 982.155, PHAs administering Housing Choice Voucher programs are responsible for tracking annual administrative fee income against actual program expenses and crediting any surplus — along with accrued interest — into the administrative fee reserve. Compliant PHAs ensure their Board of Commissioners or other authorized officials formally establish a threshold for the maximum amount that may be drawn from the reserve without specific approval. Operators should also be aware that HUD can restrict reserve usage or direct funds toward corrective action if program administration is found to be inadequate, making sound recordkeeping and oversight practices central to compliance.
General guidance for property managers — not legal advice for your specific situation. Consult an attorney for advice on your case.
Section 982.155 governs how PHAs manage the internal financial reserves that support administration of the Housing Choice Voucher program, which can affect the overall quality and continuity of program operations that tenants depend on. If a PHA mismanages these funds or fails to adequately administer a Section 8 program, HUD has authority under this provision to intervene and direct corrective use of reserve funds. Tenants who believe their PHA is mismanaging program administration may consider contacting HUD's local field office, raising concerns with a local tenant-rights organization, or reviewing HUD's publicly available PHA performance assessments for context.
General guidance for tenants — not legal advice for your specific situation. Consult a tenant-rights organization or attorney for advice on your case.
Generated September 4, 2026 — auto-generated, not yet human-reviewed. See /transparency for methodology.
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