HUD HCV Guidebook § 7.4.2

In all cases where the receiving PHA receives payments for billing arrangements no longer in effect, the
receiving PHA is responsible for returning the full amount of the overpayment (including HAP and
administrative fees) to the initial PHA.
If billing payments have continued for billing arrangements no longer in effect, HUD may take the following
actions:
          1. Direct the receiving PHA not to utilize their administrative fee reserve account in accordance with
             24 CFR 982.155(b)(3).
          2. Reduce the receiving PHA’s administrative fees by up to 10 percent of the monthly billing amount
             (HAP and Administrative Fee) in question for each month the payments continued after the billing
             arrangement was terminated. The reduction would be applied to the PHA’s prorated administrative
             fee (assuming that a pro-ration factor applies to the PHA administrative fees during this period).
             HUD will consider the circumstances of the particular case in making this determination. For
             example, if the receiving PHA was billing the initial PHA $600 a month on behalf of a family and
             collected four monthly billing payments beyond the billing arrangement termination date (for a
             total of $2,400), the receiving PHA is responsible for returning $2,400 to the initial PHA. In
             addition, HUD may reduce the PHA’s administrative fee by up to $240 as sanction for failing to
             terminate the billing arrangement in a timely manner.
If HUD decides to take any of the actions described above, the PIH field office with jurisdiction over the
receiving PHA will send a letter to the receiving PHA informing the receiving PHA of such action. The PIH field
office must98 send a copy of the letter to the HCV Financial Management Center (FMC) and the HCV Financial
Management Division (FMD). HUD may also further reduce the administrative fee if the receiving PHA does not
promptly return the overpayment to the initial PHA. This general policy does not in any way restrict the PIH
field office Director from exercising additional remedial action.
See Exhibit 3 for guidance on how to record refunded amounts in the financial records by both the initial PHA
and the receiving PHA.

98
     PIH Notice 2016-09(16)(c)

Moves and Portability                                                                                 26