New York Codes, Rules and Regulations › Title 9 - EXECUTIVE DEPARTMENT › Subtitle S - Division of Housing and Community Renewal › Chapter III - Low Rent Housing › Subchapter D - Accounting Manual For Public Housing Agencies › Part 1646 - Development Period Accounting › Subpart 1646-6 - Initial Operating Period › Section 1646-6.3 - Procedure during initial operating period

Current through Register Vol. 46, No. 28, July 10, 2024
(a) Initial operating period income. During
						the initial operating period, only income derived from the operation of the
						project proper shall be deposited into the administration fund. Such income
						shall include dwelling and non-dwelling rentals, revenue from other charges
						made to tenants, such as for sales and services, fines and penalties,
						commissions and profits from telephone pay-stations, washing machine
						concessions, vending-machines, etc. Revenue derived from other sources, such as
						interest on development fund investments, forfeited deposits on plans and
						specifications, etc., shall continue to be deposited into the development fund
						and credited to the development cost accounts provided.
(b) Initial operating period expenses.
						Expenses chargeable to the initial operating period shall include only the
						actual expenses, applicable to the period, of operating the project proper,
						such as salaries of the project manager and staff, janitorial and maintenance
						salaries, project office expenses, operating services, and utilities. Tenant
						selection costs, interest on indebtedness, insurance on newly constructed
						buildings, and taxes shall not be included, nor shall any provision be made for
						amortization of a bond issue, if any, for accrual of subsidies, or for any
						reserves. Expenses falling within the direct costs (1410) group of development
						cost accounts shall not be charged to initial operating period expense unless
						it is clearly established that such expenses would not have been incurred if
						the project proper were not being operated. All expenses chargeable to the
						initial operating period shall be paid out of the administration
						fund.
(c) Vacancy losses. No
						vacancy loss shall be recorded prior to the last day of the month during which
						95 per cent of the dwelling units of the project proper become available for
						occupancy or the date of substantial completion as determined by the
						commissioner, whichever is earlier. However, for purposes of control over the
						charging of rents to tenants, it is recommended that a memorandum record of
						vacancy losses be maintained in the rent roll and vacancy loss control book, as
						described in section
						1642-4.7.
(d) Transfers from development fund.
(1) If there are not sufficient funds
						available in the administration fund at any particular time during the initial
						operating period for payment of such operating expenses as are required to be
						paid therefrom, there may be transferred, in even amounts, from the development
						fund to the administration fund sufficient funds to cover such
						requirements.
(2) In transferring
						the above mentioned funds, a development fund accounts payable voucher shall be
						prepared, as follows:
Debit: 1680D Interfund Clearance-Development
						  $XXX
Credit: 1111 Development Fund $XXX
(3) The deposit of funds in the
						administration fund is recorded in the cash receipts register, as follows:
Debit: 1112 Administration Fund $XXX
Credit: 1680A Interfund Clearance-Administration
						  $XXX