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 1645 - Investments › Subpart 1645-2 - Accounting For Investments › Section 1645-2.9 - Allocation of interest earned to related programs

Current through Register Vol. 46, No. 28, July 10, 2024
(a) The allocation of interest earned on
						development fund investments or State Housing Fund investments is based on the
						presumption that such investments represent, firstly, the investment of
						unexpended funds for the offsite clearance program; secondly, the investment of
						unexpended funds for the rehabilitation program; thirdly, the investment of
						funds for the relocation of buildings program; and, lastly, the investment of
						unexpended funds other than funds for the specified related programs. If the
						investments were made from the proceeds of temporary loan notes, the
						investments and the allocation of the interest thereon are related to the
						unexpended balances, at the end of a quarter, of the amounts requisitioned for
						the respective related programs on the most recent approved certificate of
						purposes. If the investments were made from bond issue proceeds, the
						investments and the allocation of the interest earned thereon, are related to
						the unexpended balances, at the end of a given quarter, of the amounts budgeted
						for the respective programs on the bond sale budget.
(b) To illustrate the operation of the
						allocation of the interest earned credit, as stated above, assume that the
						unexpended balance for the respective programs, at the end of a quarter, are as
						follows:
(1)
Offsite clearance
$100,000
(2)
Rehabilitation
35,000
(3)
Relocation of buildings
10,000
$145,000
If the development fund investments were $150,000, the
						  interest earned during the quarter on $100,000 would be credited to offsite
						  clearance, on $35,000 to rehabilitation, on $10,000 to relocation of buildings,
						  and the interest on the residual amount of $5,000 would remain as a credit to
						  project development cost (account 1420.2) or project income (account 3610). If
						  the development fund investments were $125,000, the interest earned during the
						  quarter on $100,000 would be credited to offsite clearance and that on $25,000
						  to rehabilitation, with no credit to relocation of buildings or project
						  development cost (account 1420.2) or project income (account 3610). If the
						  development fund investments were $15,000, the entire credit for the interest
						  earned during the quarter would be to offsite clearance.
(c) The interest earned on development fund
						investments or State Housing Fund investments shall be credited, in the first
						instance, to account 1420.2 Interest Income, or account 3610, Interest Earned,
						whichever is applicable, and then distributed by journal voucher, as credits to
						the related programs on the basis of the allocation described above. The cutoff
						point for the allocation of interest earned to the offsite clearance program
						shall be the date of substantial completion of the project proper, or the date
						of liquidation of the offsite clearance program, whichever is earlier. The
						cutoff point for the allocation of interest earned to the rehabilitation or
						relocation of buildings programs shall be the dates of liquidation of the
						respective programs. Where State Housing Fund investments and development fund
						investments both represent bond issue proceeds, the interest earned on the
						State Housing Fund investments should be allocated first in accordance with the
						bond sale budget amounts unexpended to date. If the bond sale budget amounts
						for the related programs are in excess of the State Housing Fund investments,
						allocable thereto, then the interest earned on the development fund investments
						is allocated to the extent necessary to make up the deficiency.