42 U.S.C. § 1406a
Expenses of management and operation of transferred projects as nonadministrative; payment (THE PUBLIC HEALTH AND WELFARE (42 U.S.C.))
Operative Text
On and after all necessary expenses in connection with the management and operation of projects transferred to the Authority by Executive Order Numbered 7732 of , as modified by Executive Order Numbered 7839 of , may be considered as nonadministrative expenses, notwithstanding the provisions of , and be paid from the rents received from each transferred project.
Under 42 U.S.C. § 1406a, expenses tied to managing and operating housing projects that were transferred to the Authority under specific executive orders are classified as nonadministrative expenses. This classification allows those costs to be paid directly out of the rental income collected from each transferred project, rather than being subject to restrictions that would otherwise apply to administrative expenditures. The provision effectively carves out a funding mechanism specific to these transferred projects.
Plain English — not legal advice.
For operators or administrators overseeing projects covered by 42 U.S.C. § 1406a, compliant management generally involves tracking management and operational costs separately as nonadministrative expenses. Funds drawn from rents collected at each transferred project are the designated source for covering these costs. Administrators typically maintain clear records distinguishing these expenses from general administrative outlays to reflect the structure this provision establishes.
General guidance for property managers — not legal advice for your specific situation. Consult an attorney for advice on your case.
Under 42 U.S.C. § 1406a, rents collected from residents of these transferred projects are designated to fund the management and operation of those same projects. Tenants living in affected properties may want to understand how this funding structure relates to the services and upkeep they receive. Those with concerns about how rental income is being applied can explore options such as contacting a local tenant-rights organization or a housing authority for more information.
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 3, 2026 — auto-generated, not yet human-reviewed. See /transparency for methodology.
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