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 1642 - Basic Instructions › Subpart 1642-1 - Bank Accounts › Section 1642-1.1 - Segregation of funds

Current through Register Vol. 46, No. 28, July 10, 2024
The segregation of funds, by project and by purpose, as
						  required by the provisions of the various contracts for State aid and the
						  regulations of the commissioner, is achieved by setting up separate bank
						  accounts as follows:
(a) Development
						fund. This is the general designation of the bank account or accounts set up to
						receive the proceeds of loan funds and any other funds received by the local
						agency in connection with the development of a project. Typical sources of such
						funds are loan funds advanced by the State, loan funds borrowed from private
						investors, deposits on plans and specifications, sales of salvage, rents from
						the operation of the site prior to demolition and construction, sales of excess
						land, rents and other revenues received in connection with the related
						programs, interest on development fund investments, etc. A separate development
						fund bank account shall be set up for each project. The division may further
						require, depending on the circumstances, the segregation in separate bank
						accounts of the development funds for the various sites included in a multiple
						development project and of the development funds for the related programs of a
						project, in which case the local agency will be so advised. A separate general
						ledger account shall be set up for each bank account. Where the development
						fund of a project consists of more than one bank account, each such bank
						account shall be assigned account numbers in sequence, as account 1111.1,
						1111.2, etc. Payments shall be made from the development fund only for such
						purposes as shall have been previously specified in a signed certificate of
						purposes (see Part 1646) filed with and approved by the commissioner. Steps
						should be taken to open a development fund bank account (see §
												1642-1.2) prior to the initial
						financing of the project.
(b)
						Administration fund. This is the general designation for the bank account or
						accounts set up to receive all income, cash subsidies, and other funds received
						by the local agency in connection with the operation of the project proper.
						Typical sources are rents from the operation of the project proper beginning
						with the first rents derived from the completed buildings, cash subsidies,
						penalty charges, sales and services to tenants, telephone commissions, washing
						machine concessions, interest on administration fund investments, etc. The
						administration fund bank account is opened at the beginning of the initial
						operating period of the project proper. All rents received from the operation
						of the project proper are deposited therein beginning with the first such rents
						received and all expenses of managing the project proper shall be paid
						therefrom. The net income or deficit during the initial operating period
						results in a corresponding credit or charge to development costs and will be
						reflected in a transfer of funds between the development and administration
						funds. For details of the procedure during the initial operating period see
						Part 1646, Development Period Accounting. A separate administration fund bank
						account or accounts shall be set up for each project, a separate general ledger
						sheet being maintained for each bank account as described under development
						fund above. The division may further require, depending on the circumstances,
						the segregation in separate bank accounts of the administration funds of the
						various sites included in a multiple development project, in which case the
						local agency will be so advised. Payments shall be made from the administration
						fund only for such charges as are eligible to be made to project
						revenues.
(c) Security deposits
						fund. This is the general designation of the bank account or accounts set up to
						receive security deposits from tenants. A separate security deposits fund bank
						account shall be set up for each project. The division will not require that
						separate security deposits fund bank accounts be opened for each of the various
						sites included in a multiple development project.
(d) Reserve fund. This is the general
						designation of the bank account or accounts set up to receive funds set aside
						from project revenues for the following reserves:
(1) Replacement reserve
(2) Painting and decorating reserve
(3) Vacancy and collection loss
						reserve
(4) Any other authorized
						and approved reserve
A separate reserve fund bank account shall be set up
						  for each project. The division will not require that separate reserve fund bank
						  accounts be opened for each of the various sites included in a multiple
						  development project. For details as to setting up the various reserves and the
						  transfers to be made between the administration and reserve funds, see Part
						  1647, Operating Period Accounting.