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 1641 - Account Classification › Subpart 1641-2 - Account Definitions › Section 1641-2.1 - Account definitions

Current through Register Vol. 46, No. 28, July 10, 2024
The accounts listed on the chart of accounts [see §
						  1641-5,
supra
] are defined in this section. Questions
						  concerning the classification of charges and credits not covered by the account
						  definitions should be referred to the division for ruling.
ASSET ACCOUNTS-1000 GROUP
1100 Cash, Receivables, and
						  Investments
This group of accounts includes all cash, accounts,
						  notes and accrued receivables, and investments held by a local agency in the
						  name of, or for the benefit of, a given project. Separate accounts under this
						  heading shall be maintained as herein prescribed.
1110 Cash
This group of accounts includes all cash of a given
						  project on hand or on deposit. Separate accounts shall be maintained under this
						  heading as herein prescribed. When a given fund consists of more than one bank
						  account, each such bank account shall be designated as a separate subaccount
						  under the applicable fund. For example, if development funds are deposited in
						  two banks, the bank accounts are designated as Development Fund #1, and
						  Development Fund #2, respectively, and separate ledger accounts kept for each
						  bank account, the ledger accounts being designated as account 1111.1, 1111.2,
						  etc. Savings accounts in savings and loan associations and commercial banks,
						  and certificates of deposits with commercial banks, are classified as
						  investments and should not be included under the heading of cash. See 1170
						  group of accounts, Investments, for further details.
1111 Development Fund
The debit balance of this account shall reflect funds
						  received for the development of the project, less expenditures made, in
						  accordance with the contract for State aid.
1112 Administration Fund
The debit balance of this account represents the
						  unexpended cash balance of revenue received from the management and operation
						  of the project, including subsidies.
1113 Reserve Fund
The debit balance of this account represents the amount
						  of uninvested cash on deposit in a bank account specifically designated for
						  such reserve funds as are required to be segregated from the Administration
						  Fund. See Part 1647, Operating Period Accounting, for the operation of this
						  account.
1114 Security Deposits Fund
The debit balance of this account represents the
						  uninvested amount of cash paid by tenants to secure a local agency against
						  losses arising from nonpayment of rent or from other causes. These deposits, by
						  law, are held in trust for the tenants, and should be segregated from all other
						  funds. If security deposits funds are invested by the local housing authority
						  or deposited in a bank account paying interest, the interest thereon is the
						  property of the tenants, and the debit balance in account 1114 will also
						  include the undistributed portion of such interest received. Where a
						  Consolidated Security Deposits Fund has been approved by the division for the
						  housing authority, the balance in this account represents the project's equity
						  in the Consolidated Security Deposits Fund of the authority.
1115 Special Deposits
This account is provided for unusual transactions which
						  may arise, such as the deposit of a sum of money in escrow while a pending
						  claim against a local agency is being resolved. The use of this account will be
						  restricted to such transactions as are approved by the Division of Housing.
						  Container deposits, etc., should be charged to account 1129, Sundry Accounts
						  Receivable.
1116 Local Funds
The debit balance of this account represents the
						  unexpended cash balance of funds donated to, or borrowed by, a local agency for
						  payment of other than eligible development or operating costs of a State-aided
						  project or for the payment of indeterminate expenditures.
1117 Petty Cash Fund
The debit balance of this account represents the amount
						  of imprest cash fund available for the payment of nominal expenses.
1118 Change Fund
The debit balance of this account represents the cash
						  fund made available from the Administration Fund for convenience in making
						  change. The amount of cash on hand in this fund should at all time[s] be
						  constant for the total amount of the fund as established. The Change Fund is
						  maintained and operated independently of the Petty Cash Fund.
1120 Accounts Receivable
This group of accounts shall include all amounts due
						  from tenants, and all amounts, except accrued receivables other than rent, due
						  on open account not evidenced by a formal instrument of indebtedness in favor
						  of the local authority, such as a note. Separate accounts are provided under
						  this heading, as follows:
1122 Tenants Accounts Receivable
This account shall control the balances on the
						  individual tenants account cards, and the account balance shall represent the
						  net of the debit and credit balances of the individual tenants' accounts. At
						  the end of each quarter, the sum of the individual credit balances shall be
						  reported, as account 2240, Tenants' Prepaid Rents. See subdivision (j) of
						  section 1642-4.3, Part 1642, Basic
						  Instructions, for entries and procedures. The above instructions under 1122
						  apply to the subaccounts listed below.
1122.1 Permanent Projects
This balance represents the amount due from tenants who
						  are occupying apartments or have vacated apartments in the permanent operating
						  project.
1122.2 Site Operations
This balance represents the amount due from residential
						  and commercial tenants who are occupying or have vacated accommodations on the
						  site. This situation occurs if the authority has acquired property, with
						  tenants in occupancy, which land is to be incorporated into the project
						  site.
1122.3 Former Owners and Fixture
						  Awardees
The balance in this account represents the amount due
						  from former owners for rent and sundry charges, who remain in occupancy after
						  property was acquired by the authority for the project. It also includes unpaid
						  rent and sundry charges owed by commercial tenants who have been granted
						  fixture awards.
1122.4 Rehabilitation Operations
Where a housing authority has rehabilitated old
						  buildings to provide additional dwelling units, this account represents past
						  due rent and sundry charges due from tenants.
1122.5 Offsite Tenants
The balance in this account represents the amount due
						  from tenants who are occupying dwellings on property acquired by the authority
						  for the purposes of offsite clearance.
1123 State Housing Fund
This account will reflect any balance that may be due
						  to the local agency from the State of New York from funds received by the State
						  representing the proceeds of the sale of bonds (exclusive of the premium
						  thereon) earmarked for a specific project and paid into the State Housing Fund.
						  Such balance may consist of cash on deposit with the State Comptroller, or of
						  cash and investments.
1124 State Housing Debt Fund
This account is charged with the amount of the premiums
						  received by the State from purchasers of State housing bonds over and above
						  their face value, with the interest received by the State on State Housing Fund
						  Investments, and with the remittances made by the authority to the State to
						  meet payments of interest and amortization on State housing bonds and is
						  credited with such payments of interest and amortization as have been made to
						  bondholders by the State. The authority will be advised by the division of the
						  amount of the premium to be recorded. Interest on State Housing Fund
						  Investments should, also, not be accrued or recorded until the authority is
						  advised by the division as to the amount of the interest. See Part 1646, Debt
						  Service, for accounting entries.
1129 Sundry Accounts Receivable
The debit balance of this account represents amounts
						  receivable as a result of transactions for which specific accounts are not
						  provided above. Accounts shall be maintained with each individual, firm,
						  organization, or other entity, in a subsidiary sundry accounts receivable
						  ledger to be controlled by this account.
As an aid in reconciling the funds, it is recommended
						  that the authority use the following subaccounts to indicate the fund
						  involved:
1129 D Sundry Accounts
						  Receivable-Development
1129 A Sundry Accounts
						  Receivable-Administration
1129 R Sundry Accounts Receivable-
						  Reserve
With respect to transactions between funds, use the
						  1680 group of accounts.
1140 Accrued Receivables
This group of accounts shall include all subsidies due
						  on account of the operation of a given project and all accrued receivables
						  other than rent. The term
accrued receivables
refers to
						  revenue accruing with the lapse of time or as services are performed, and
						  periodically recognized. Separate accounts are provided under this heading, as
						  follows:
1141 Subsidies-State of New York
The debit balance of this account represents the
						  accrued annual subsidies that may be due from the State of New York. See Part
						  1648, Subsidies, for accounting entries.
1142 Subsidies-Other
The debit balance of this account represents the amount
						  of accrued local subsidies in the form of cash that may be due from the city,
						  town, village, or other political subdivision obligated to pay such subsidies
						  under the terms of a contract for State aid.
Memo Subsidies-Tax Exemption
						  (Cumulative)
The debit balance of this account represents, for
						  record-keeping purposes only, the cumulative value of the exemption from local
						  real estate taxes granted to the project in accordance with the provisions of
						  the Public Housing Law and the contract for State aid. The entries to this
						  account shall be made at the close of each fiscal year, beginning with the
						  fiscal year in which the date of substantial completion falls, for the value of
						  the tax exemption subsidy for that year, the credit being made to the memo
						  income account, Tax Exemption Subsidies, (Annual), kept with the 3800 group of
						  accounts. Both these memo accounts are for the purpose of reflecting on the
						  books of record the accumulated tax exemption enjoyed by the project and are
						  not to be reflected on the financial reports.
1143 Accrued Interest Receivable on
						  Mortgages
The debit balance of this account represents the
						  accrued interest receivable on mortgages acquired in connection with the
						  acquisition of land, title to which has not yet been acquired by the local
						  agency. In the acquisition of land by private negotiation, local agencies will
						  very often deal with the owners of the land and the holders of the mortgage
						  separately and may buy the mortgage prior to obtaining title to the land. The
						  accrual of interest will cease as of the date the title to the land is
						  acquired, and the mortgage is merged into the fee.
1144 Accrued Interest Receivable on
						  Investments
The debit balance of this account represents the
						  accrued interest receivable on investments of the local agency. Interest on
						  State Housing Fund Investments shall not be accrued, but shall be charged to
						  account 1124, State Housing Debt Fund, when the local agency is advised by the
						  Division of Housing as to the amount of such interest received by the State and
						  paid into the State Housing Debt Fund. The increase or decrease in redemption
						  value of local agency investments in series F, G, J and K United States savings
						  bonds shall not be charged to this account, but shall be charged to the
						  appropriate investment subaccount of the 1170 group of accounts, See Part 1645,
						  Investments, for accounting entries. As an aid in reconciling the funds, it is
						  recommended that the authority use the following subaccounts to indicate the
						  fund involved:
1144 D Accrued Interest Receivable on
						  Development Fund Investments
1144 A Accrued Interest Receivable on
						  Administration Fund Investments
1144 R Accrued Interest Receivable on Reserve
						  Fund Investment
1170 Investments
There shall be included in this group of accounts all
						  investments of project funds, in formal securities, made by the local agency.
						  Savings accounts in savings and loan associations and commercial banks, and
						  certificates of deposit with commercial banks, are to be included in this
						  account and treated like an investment in a formal security. This group of
						  accounts does not include investments made by the State of the proceeds of bond
						  issues paid into the State Housing Fund nor mortgages acquired by the local
						  agency in connection with the acquisition of land. The individual contracts for
						  State aid should be referred to for possible limitations and restrictions on
						  the investments of the various funds by the local agency. Accounting entries
						  and procedures in connection with investments will be found in Part 1645,
						  Investments. Separate accounts shall be maintained, by source of funds
						  invested, as follows:
1172 Development Fund Investments
The debit balance of this account represents the book
						  value of investments purchased or made from the Development Fund.
1173 Administration Fund
						  Investments
The debit balance of this account represents the book
						  value of all investments purchased or made from the Administration Fund.
1176 Reserve Fund Investments
The debit balance of this account represents the book
						  value of all investments purchased or made from the Reserve Fund.
1200 Deferred Charges and
						  Prepayments
There shall be included in this group of accounts all
						  expenditures made or accrued in one period which shall become a charge to
						  operations or development costs, in subsequent periods. Separate accounts shall
						  be maintained, as follows:
1210 Deferred Charges to Insurance
The debit balances of the accounts in this group
						  represent the amount of the unexpired portion of insurance premiums and the
						  amount of rebates, return premiums, or dividends due on expiration of policies
						  with mutual insurance companies. Refer to Part 1642, Basic Instructions, for
						  entries and procedures. Separate accounts shall be maintained as
						  follows:
1211 Prepaid Insurance
This account
						  includes the unexpired portion of stock company insurance premiums and of the
						  estimated net premium where the insurer is a mutual insurance company.
						  Estimated net premium is defined as the difference between the gross premium on
						  the face of the policy and the estimated rebate or return premium from the
						  mutual insurance company accruing upon the expiration of the policy.
As an aid in reconciling the funds, it is recommended
						  that the authority use the following subaccounts to indicate the fund
						  involved.
1211 D Prepaid Insurance-Development 1211 A
						  Prepaid Insurance-Administration
1212 Anticipated Returnable
						  Premiums
This account includes deposit premiums and the
						  estimated amount of rebates, return premiums, or dividends that will become due
						  upon the expiration of policies, such as those placed with mutual insurance
						  companies.
As an aid in reconciling the funds, it is recommended
						  that the authority use the following subaccounts to indicate the fund
						  involved:
1212 D Anticipated Returnable
						  Premiums-Development 1212 A Anticipated Returnable
						  Premiums-Administration
1230 Prepaid Utilities
Payments for utilities chargeable to expense in future
						  periods shall be charged to this group of accounts in the interim. Separate
						  accounts shall be maintained by type of utility. The following is the only
						  account now prescribed:
1231 Prepaid Water
When payment has been made in advance for water, the
						  total payment made should be charged to this account. Thereafter, the
						  proportionate part of such charge should be written off, the appropriate
						  development cost or operating expense account being debited and this account
						  credited.
1260 Inventories
Ordinarily, all commodities, supplies, and materials,
						  except fuel and paint supplies, will be charged directly to the appropriate
						  cost or expense accounts when purchased. Purchases of fuel and paint supplies,
						  however, shall first be charged to the inventory accounts prescribed in this
						  group of accounts and the amounts consumed subsequently credited out of
						  inventory and charged to the appropriate expense accounts in the manner
						  described in Part 1642, Basic Instructions. In addition to the general ledger
						  account controlling the money value of the inventory of paint supplies, a
						  stores system to control the physical quantities of paint supplies shall be
						  maintained. Stores systems to record and control the physical quantities of
						  other commodities, supplies, and materials purchased, issued, and consumed may
						  be prescribed by the Division of Housing or adopted by the local agency, but
						  they need not be controlled by general ledger inventory accounts. Refer to Part
						  1642, Basic Instruction, for entries and procedures. Separate accounts are
						  prescribed, as follows:
1261 Fuel Inventory
The debit balance of this account includes the
						  inventory value of coal, fuel oil, etc.
1262 Paint Supplies Inventory
The debit balance of this account includes the
						  inventory value of paint, paint supplies, and painting accessories such as
						  ladders, drop cloths, brushes, etc.
1269 Sundry Inventories
The debit balance of this account represents the value
						  of any inventory established other than fuel or paint supplies.
1270 Prepaid Rent
The debit balance of this account represents the amount
						  of rent paid or vouchered by the local agency for premises occupied by it (such
						  as a central office), but applicable to a future period.
1280 Prepaid Taxes
The debit balance of this account represents the amount
						  of taxes which have been paid or vouchered, but which are applicable to a
						  future period.
1290 Sundry Deferred Charges and
						  Prepayments
The debit balance of this account represents the amount
						  of prepayments of costs or expenses applicable to future period which are not
						  specifically chargeable to other accounts in the 1200 group.
1300 Working Capital
The debit balance of this account represents the amount
						  of funds borrowed from the proceeds of a State housing bond issue in excess of
						  the development cost of a project, as certified by the Commissioner of Housing.
						  This account is used only after the project is declared physically completed
						  and the amount of working capital has been certified by the Commissioner of
						  Housing. See section
						  1646-8.1 for the accounting
						  entries.
1400 Development Costs
The debit balances of the accounts in this group
						  represent all eligible costs and expenses of project development which have
						  been capitalized in accordance with a contract for State aid between the local
						  agency and the State. The balances of these accounts shall be net of credits to
						  development costs. This account is a general ledger control account. Detailed
						  development costs accounts subsidiary to this account are defined following the
						  general ledger accounts.
1500 Incompleted Contracts
The debit balance of this account represents the amount
						  of the unliquidated balance of development cost and management contracts. This
						  account is contra to account 2400, Contract Awards. For balance sheet purposes,
						  this account should be shown as a deduction from account 2400, Contract
						  Awards.
As an aid in reconciling the funds, it is recommended
						  that the authority use the following subaccounts to indicate the fund
						  involved:
1500 D Incompleted
						  Contracts-Development
1500 A Incompleted
						  Contracts-Management
1600 Suspense and Clearance
This group of accounts includes all items the charging
						  of which is suspended pending the determination of the particular cost or
						  expense accounts to be charged. It also includes items which cannot ultimately
						  be charged to other specific accounts, such as ineligible expenditures.
						  Separate accounts shall be maintained under this heading as follows:
1610 Indeterminate Expenditures
The debit balance of this account represents
						  expenditures incurred by the local agency prior to the date of the contract for
						  State aid, the eligibility of which as development costs is subject to audit
						  and approval by the division. Such expenditures shall be paid out of local
						  agency funds other than funds advanced or to be advanced by the State or
						  project revenues. After review and approval by the division, the amount of such
						  expenditures as are determined to be eligible shall be transferred from this
						  account and charged to account 1400, Development Costs. The local agency may
						  then reimburse itself for the expenditures approved as eligible out of loan
						  funds advanced or to be advanced by the State. Local agencies should
						  predetermine, as far as possible, the eligibility of indeterminate expenditures
						  inasmuch as the eligible purposes for which such expenditures may be made are
						  principally restricted to those in connection with the application for
						  financial assistance or a housing survey. In addition, the division may limit,
						  in advance, the total amount of otherwise eligible indeterminate expenditures
						  which may be reimbursable out of loan funds. No disposition of the balance, if
						  any, remaining in this account, after eligible expenditures have been
						  transferred to development costs, shall be made without prior division
						  approval. Refer to Part 1640, General Information, for procedures in connection
						  with indeterminate expenditure.
1620 Ineligible Expenditures
The debit balance of this account represents the amount
						  of expenditures, made by a local agency subsequent to the date of a contract
						  for State aid, and charged to project revenues or funds advanced or to be
						  advanced by the State, which, upon audit and review, have been determined by
						  the division to be ineligible to be charged to project revenues or to funds
						  advanced or to be advanced by the State. Refer to Part 1640, General
						  Information, for procedures in connection with eligibility standards, audit and
						  review of expenditures, determination of ineligibility, and reimbursement of
						  funds for ineligible expenditures which have been paid therefrom. The liability
						  for ineligible expenditures charged but not paid shall be transferred to
						  account 2119, Accounts Payable, Sundry, pending payment by the local agency out
						  of funds other than project revenues, or funds advanced or to be advanced by
						  the State.
As an aid in reconciling the funds, it is recommended
						  that the authority use the following subaccounts to indicate the fund
						  involved:
1620 D Ineligible Expenditures-Development 1620
						  A Ineligible Expenditures-Administration
1640 Payroll Clearance
This account is charged at the end of each payroll
						  period with the actual disbursements (net) for salaries and wages, from the
						  cash disbursements-voucher register. This account is credited with the net
						  amount paid, the total of which is reflected in column (9) of the periodical
						  payroll form, Exhibit 29 of Appendix S-8. The use of this account is ordinarily
						  indicated only where the authority is operating more than one project or a
						  central office. The detailed procedure with respect to making entries in this
						  account is more fully explained in Part 1642, Basic Instructions. As an aid in
						  reconciling the funds, it is recommended that the authority use the following
						  subaccounts to indicate the fund involved:
1640 D Payroll Clearance-Development 1640 A
						  Payroll Clearance-Administration
1650 Revolving Fund
A Revolving Fund, in the form of a separate bank
						  account, may be established, with prior written division approval, where an
						  authority is operating more than one project for the purpose of paying joint
						  expenses. The balance in this account represents the project's equity in the
						  Revolving Fund of the housing authority. As an aid in reconciling the funds, it
						  is recommended that the authority use the following subaccounts to indicate the
						  fund involved:
1650 D Revolving Fund-Development 1650 A
						  Revolving Fund-Administration
1670 Insurance Claims
(b) A file shall be maintained for each loss covered by
						  hazard insurance, regardless of the amount of the loss, which shall include,
						  besides copies of all documents and correspondence relating to the loss, a
						  record of costs incurred in repairing, restoring or replacing the loss or
						  damage, the cost of making the claim, the amount of the claim, and the ultimate
						  disposition of the claim. No accounting entry is made when the claim is filed.
						  When the claim is settled, the amount of the settlement is charged to account
						  1129, Sundry Accounts Receivable, and credited to Insurance Claims Clearance,
						  account 1670. If the claim has arisen prior to the date of substantial
						  completion, the difference, if any, is transferred out of the Insurance Claims
						  Clearance account and charged or credited to account 1480, Other Charges and
						  Credits to Development Costs, unless the claim is in connection with related
						  offsite, rehabilitation, or relocation of buildings programs, when the transfer
						  will be to the appropriate development cost subaccount. If the claim has arisen
						  subsequent to the date of substantial completion, the transfer shall be to
						  account 3590, Miscellaneous Project Income, if the amount received in
						  settlement is in excess of the cost, and to account 6100, Miscellaneous Losses,
						  if the settlement is less than the costs.
(c) This account shall also be charged with the amount
						  of the claim against surety and bonding companies arising out of losses covered
						  by fidelity bonds. The account to be credited when such claim is charged will
						  depend on the circumstances. When the claim is settled, the amount of the
						  settlement shall be transferred to account 1129, Sundry Accounts Receivable,
						  and the differences, if any, between the amount of the claim and the settlement
						  handled in the same manner as for losses covered by hazard insurance.
1680 Interfund Clearance
1680 D Interfund
						  Clearance-Development
A debit balance in this account represents the amount
						  due to the Development Fund from the Administration and/or Reserve Funds; a
						  credit balance in this account represents the amount owing by the Development
						  Fund to the Administration and/or Reserve Funds.
1680 A Interfund
						  Clearance-Administration
A debit balance in this account represents the amount
						  due to the Administration Fund from the Development and/or Reserve Funds; a
						  credit balance in this account represents the amount owing by the
						  Administration Fund to the Development and/or Reserve Funds.
1680 R Interfund Clearance-Reserve
A debit balance in this account represents the amount
						  due to the Reserve Fund from the Development and/or Administration Funds; a
						  credit balance in this account represents the amount owing by the Reserve Fund
						  to the Development and/or Administration Funds.
1690 Sundry Suspense and Clearance
This account shall be charged and credited with such
						  suspense and clearance items for which accounts have not been otherwise
						  provided in the 1600 group of accounts.
1695 Tenants Disbursements
						  Clearance
This account shall be used to record the liability for
						  legal fees, marshall fees, court costs and other costs directly chargeable to
						  tenants, pending the payment of invoices by the local agency. When the invoice
						  is received and approved for payment, a miscellaneous charge and credit ticket
						  (Exhibit 22 of Appendix S-8) shall be prepared for each item on the invoice and
						  the charges posted simultaneously to the tenants charges and credit book
						  (Exhibit 25 of Appendix S-8) and to the individual tenants ledger cards. The
						  total amount of the invoice will thereby be reflected as a charge to Tenants
						  Accounts Receivable, account 1122, and as a credit to account 1695, Tenants
						  Disbursements Clearance, through the medium of the TCC book. When the invoice
						  is paid, account 1695 shall be charged.
LIABILITIES, RESERVES AND CAPITAL-2000
						  GROUP
2100 Payables and Accruals
This account group shall include all payables and
						  accruals of the local agency as indicated by the account designations that
						  follow. Separate accounts shall be maintained under this heading as
						  follows:
2110 Accounts Payable
This group of accounts shall include all amounts
						  payable by the local agency on open account not evidenced by a formal
						  instrument of indebtedness such as a note. Separate accounts are provided under
						  this heading, as follows:
2111 Vendors and Contractors-Accounts
						  Payable
2111 D Vendors and
						  Contractors-Development
The credit balance of this account represents amounts
						  due and payable from the Development Fund which have been vouchered. Contract
						  retentions, taxes payable, and accrued liabilities should be credited to the
						  appropriate accounts provided therefor. If salaries and wages payable from
						  Development Funds have been vouchered, and remain unclaimed for one month, the
						  vouchers should be cancelled and the amounts transferred by journal voucher to
						  account 2115, Unclaimed Salaries and Wages.
2111 A Vendors and
						  Contractors-Administration
The credit balance of this account represents amounts
						  due and payable from the Administration Fund which have been vouchered.
						  Contract retentions, taxes payable, and accrued liabilities should be credited
						  to the appropriate accounts provided therefor. If salaries and wages payable
						  from Administration Funds have been vouchered, and remain unclaimed for one
						  month, the vouchers should be cancelled and the amounts transferred by journal
						  voucher to account 2115, Unclaimed Salaries and Wages.
2112 Contract Retentions
The credit balance of this account represents the
						  amounts withheld from payments of contractors' periodical estimates or other
						  contracts payable from the Development and Administration Funds. The balance of
						  this account shall agree with the total of the Contract Retentions column on
						  the schedule of Contract Awards submitted with the periodical financial
						  reports.
As an aid in reconciling the funds, it is recommended
						  that the authority use the following subaccounts to indicate the fund
						  involved:
2112 D Contract Retentions-Development 2112 A
						  Contract Retentions-Administration
2113 Deposits-Other Than Tenants
(a) The credit balance of this account represents the
						  amount of deposits received by the local agency (exclusive of tenants' security
						  deposits) and subject to possible refund. This includes such items as earnest
						  money, deposits on bids and specifications, deposits by contractors, and others
						  in connection with construction, demolition and management, and deposits,
						  binders, or options, on sales of real property owned by the local agency prior
						  to the closing of title. All such deposits shall be deposited in the applicable
						  fund. This account shall control and be supported by a subsidiary ledger in
						  which accounts shall be maintained with each individual, firm, organization, or
						  other entity from whom a deposit is received. Local agencies will find it
						  useful to note on each account, the conditions surrounding the receipt and
						  possible refund of the deposit.
(b) Refunds of deposits, when made, shall be charged to
						  this account. Where a set of contract documents has not been returned within 30
						  days following the award of the contract or the rejection of the proposal of
						  such person or corporation, the deposit is to be declared forfeited. Forfeited
						  deposits, or the difference between the amount of the deposit and the amount
						  refunded shall be transferred from this account and credited to account 1430.5,
						  Blue Printing, if the deposit was originally made in the Development Fund.
If the deposit has been received in connection with the
						  sale of real property or salvage from demolition, however, and the underlying
						  transaction has been consummated, the deposit should be considered as being on
						  account of the sales or contract price, and should be credited, upon
						  consummation, to the appropriate development cost account (see e.g., account
						  1440.15, Sale of Site Land, or account 1440.14, Demolition and
						  Clearing).
(c) For those deposits in the Administration Fund that
						  are forfeited, the account to be credited is 3590, Miscellaneous Project
						  Income.
(d) For the handling of deposits paid by the local
						  agency, see account 1115, Special Deposits, account 1129, Sundry Accounts
						  Receivable, and account 1440.7 Consideration for Options.
2114 Tenants' Security Deposits
(a) The credit balance of this account represents the
						  amount of deposits which are held for tenants and are to be returned on the
						  termination of their occupancy after deducting therefrom rent due and charges
						  for replacement or repair of damaged property, etc. Tenants' security deposits
						  from all sources shall be credited to this account, and deposited in the
						  Security Deposits Fund, whether received during the development, initial
						  operating, or operating periods, or in connection with the operation of the
						  project proper prior and subsequent to demolition, or the related offsite
						  clearance, rehabilitation, or relocation of buildings program.
(b) All reimbursement of tenants' security deposits
						  shall be made by check. Unclaimed security deposits checks shall be redeposited
						  in the Security Deposits Fund.
(d) See Part 1642, Basic Instructions, for entries and
						  procedures.
2114.1 Interest Earned on Tenants' Security
						  Deposits
The credit balance of this account represents the
						  cumulative interest earned on all tenant security deposits.
2115 Unclaimed Salaries and Wages
The credit balance of this account represents the
						  amount of all unclaimed salaries and wages due employees. This account shall be
						  cleared of all wages and salaries remaining unclaimed for one year.
2117 Deductions and Withholdings
2117.1 Income Taxes Withheld
The credit balance of this account represents the
						  payroll deductions for income tax which have not been remitted to the Director
						  of Internal Revenue. If the total income taxes withheld exceeds $100 for either
						  of the first two months of a calendar quarter, the local agency is obliged to
						  deposit the taxes with a Federal reserve bank or commercial bank authorized to
						  receive them, within 15 days after the close of the calendar month.
2117.3 Pension Fund Deductions
The credit balance of this account represents the
						  salary deductions for employees' pensions, which have not been remitted to the
						  pension system.
2117.4 Social Security Deductions and Employer's
						  Contributions
The credit balance of this account represents the
						  combined amount of the local agency's contributions and payroll deductions for
						  social security, which have not been remitted to the State social
						  agency.
2119 Sundry Accounts Payable
The credit balance of this account represents all
						  accounts payable (except for transactions between funds-use account 2280) not
						  allocable to other specific accounts provided in the 2110 group. Accounts shall
						  be maintained with each individual, firm, organization, or other entity, in a
						  subsidiary sundry accounts payable ledger to be controlled by this account. As
						  an aid in reconciling the funds, it is recommended that the authority use the
						  following subaccounts to indicate the fund involved:
2119 D Sundry Accounts Payable-Development 2119
						  A Sundry Accounts Payable-Administration 2119 R Sundry Accounts
						  Payable-Reserve
2120 Temporary Loan Notes Payable
The credit balance of this account represents the
						  amount of the outstanding Temporary Loan Notes of the local agency. DO NOT
						  include the advance loan notes to the State of New York held in escrow, under
						  the terms of a requisition agreement as security for the payment of interest
						  and principal of the Temporary Loan Note or certificates of indebtedness issued
						  to the State. The former are shown as a footnote to the balance sheet and the
						  latter are separately classified and shown under the Indebtedness to State of
						  New York (2300 group of accounts). Refer to Part 1643, Financing, for entries
						  and procedures pertaining to temporary financing.
2130 Accrued Liabilities
This group of accounts shall include all items of cost
						  or expense applicable to the current period, which are due and payable in a
						  subsequent period. Separate accounts are provided under this heading, as
						  follows:
2132 Accrued Interest Payable
2132.1 Accrued Interest Payable-State of New
						  York
This account shall be credited with all interest
						  accrued on all indebtedness to the State of New York. Refer to Part 1644, Debt
						  Service, for the operation of this account.
2132.2 Accrued Interest Payable-Temporary Loan
						  Notes
This account shall be credited with all interest
						  accrued on all indebtedness other than indebtedness to the State of New York.
						  Refer to Part 1645, Debt Service, for the operation of this account.
2134 Accrued Utilities
The credit balance of this account represents the
						  amount of utility expense accrued. The use of subaccounts in the general ledger
						  to analyze accrued utilities by type of utility is optional. Suggested
						  subaccounts follow:
2134.1 Water
2134.2 Electricity
2134.3 Gas
2134.4 Fuel
2134.9 Sundry
The analysis, if made, should not, however, be
						  reflected in statements or reports to the division.
2135 Accrued Salaries and Wages
The credit balance of this account represents the
						  amount of salaries and wages accrued and unpaid. This account is used to
						  reflect the liability of the project for salaries and wages accrued to the end
						  of an accounting period, but not payable until the following period, as where
						  the ends of the accounting and the payroll periods do not coincide. Refer to
						  Part 1642, Basic Instructions, for the operation of this account and account
						  1640, the Payroll Clearance Account.
2136 Accrued Insurance
The credit balance of this account represents the
						  amount of accrued insurance cost or expense. Refer to Part 1642, Basic
						  Instructions for the operation of this account. As an aid in reconciling the
						  funds, it is recommended that the authority use the following subaccounts to
						  indicate the fund involved:
2136 D Accrued Insurance-Development 2136 A
						  Accrued Insurance-Administration
2137 Acrued Real Estate Taxes
The credit balance of this account represents the
						  amount of accrued real estate taxes. Income taxes withheld from salaries and
						  wages should be credited to account 2117, Income Taxes Withheld.
2138 Accrued Pension Fund
						  Contributions
The credit balance of this account represents the local
						  agency's contribution for employees' pensions. As an aid in reconciling the
						  funds, it is recommended that the authority use the following subaccounts to
						  indicate the fund involved:
2138 D Accrued Pension Fund
						  Contributions-Development
2138 A Accrued Pension Fund
						  Contributions-Administration
2139 Sundry Accruals
The credit balance of this account represents the
						  amount of accrued cost or expense not allocable to the other specific accounts
						  provided in the 2130 group of accounts.
2200 Deferred Credits
This group of accounts shall include all liabilities
						  for premiums on temporary loan notes, prepaid rents, subsidies received and not
						  applied, and amounts received in payment for services to be rendered at a
						  future date. Separate accounts are provided under this heading as
						  follows:
2230 Premium on Temporary Loan
						  Notes
The credit balance of this account represents the
						  premium received on the sale of a local agency's Temporary Loan Notes, as
						  amortized pursuant to procedures set forth in section
						  1644-2.5.
2240 Tenants Prepaid Rents
The credit balance of this account reflects the total
						  of the individual credit balances in account 1122, Tenants' Accounts
						  Receivable. See Part 1642, Basic Instructions, for entries and
						  procedures.
2250 Prepaid State of New York
						  Subsidies
There shall be included in this group of accounts all
						  subsidies received from the State of New York which are to be applied to meet
						  deficits resulting from operations in current or future periods. Refer to Part
						  1648, Subsidies, for accounting procedures and entries in connection with State
						  subsidies.
(a) The credit balance of this account represents the
						  amount of State subsidies not applied to meet deficits in operations and
						  available for such use.
(b) All subsidies received from the State of New York
						  shall be credited, upon receipt, to this account or applied to meet deficits in
						  operations. The application of subsidies to meet deficits in operations may be
						  by way of a charge closing out of the debit balance, if any, in account 1141,
						  Accrued Receivables-State of New York Subsidies, and by way of a charge at the
						  end of the fiscal year, transferring to revenue (account 3810, State of New
						  York Subsidies) the amount, to the extent of credit balance remaining in this
						  account not reserved for working capital, required to meet the deficit in
						  operations for that year. Part 1648, Subsidies, should be referred to for
						  accounting entries and procedures in this connection and also with respect to
						  limitations and restrictions on the accrual, determination, payment, and
						  application of State subsidies.
2260 Other Prepaid Cash Subsidies
In the event that a portion of the local subsidy is in
						  the form of cash, the total amount of such cash subsidy received shall be
						  credited to this account before being applied. The credit balance of this
						  account represents the balance of cash subsidies received from others than the
						  State of New York which has not been applied to meet deficits in current
						  operations. Refer to Part 1648, Subsidies, for entries and procedures in
						  connection with other cash subsidies.
2300 Indebtedness to the State of New
						  York
This group of accounts shall include all outstanding
						  indebtedness to the State of New York arising out of financing prior or
						  subsequent to the issuance of bonds by the State, that may be evidenced by
						  certificates of indebtedness or otherwise. Advance loan notes payable to the
						  State of New York, executed and held in escrow, shall not, however, be included
						  in this group of accounts, but shall be disclosed in a footnote to the balance
						  sheet. Refer to Part 1643, Financing, for procedures in connection with this
						  group of accounts. Separate accounts are provided under this heading as
						  follows:
2310 Certificate of Indebtedness
2311 Certificates of Indebtedness
						  Authorized
The credit balance of this account represents the
						  amount of Certificates of Indebtedness to the State of New York which has been
						  authorized by resolution of the local agency.
2312 Certificates of Indebtedness
						  Unissued
The debit balance of this account represents the amount
						  of Certificates of Indebtedness to the State of New York which has been
						  authorized but not issued.
2313 Indebtedness Amortized-State of New
						  York
The debit balance of this account represents payments
						  made by the State to holders of housing bonds in reduction of the amount of
						  bonds issued and outstanding. The balance in this account is cumulative. Refer
						  to Part 1644, Debt Service, for procedures in connection with the amortization
						  of the local agency's indebtedness to the State.
2314 Certificates of Indebtedness
						  Subscribed
The credit balance of this account represents the
						  amount of housing bonds issued by the State for which the local agency has not
						  yet issued its Certificates of Indebtedness.
2400 Contract Awards
The credit balance of this account represents the value
						  of the uncompleted portion of development cost and management contracts and
						  that portion of contracts completed which has not been vouchered. This account
						  is contra to account 1500, Incompleted Contracts. As an aid in reconciling the
						  funds, it is recommended that the authority use the following subaccounts to
						  indicate the fund involved:
2400 D Contract Awards-Development
2400 A Contract Awards-Management
2500 Reserves
This group of accounts shall include all amounts
						  reserved out of revenue. It shall also include the amount reserved for working
						  capital out of the proceeds of a State bond issue. Refer to Part 1646,
						  Development Period Accounting, for procedures in connection with the Reserve
						  for Working Capital and to Part 1647, Operating Period Accounting, in
						  connection with other reserves. All reserves, except the Reserve for Working
						  Capital, shall be segregated from other funds and shall be in the form of cash
						  and investments. Separate accounts shall be maintained under this heading, as
						  follows:
2510 Replacement Reserve
The credit balance of this account represents the
						  amount reserved, in the manner prescribed by the Division of Housing, for
						  future replacements of deteriorated equipment. The use and extent to which this
						  reserve is employed in the purchase of replacements shall be in accordance with
						  the division procedure and instructions of the division. See the instructions
						  governing the application and use of the Replacement Reserve in Part 1647,
						  Operating Period Accounting. The interest earned on all investments of reserve
						  funds, whether made for the Replacement Reserve or for other reserves, although
						  recorded separately in account 2511, shall be considered as a part of the
						  Replacement Reserve.
2511 Interest Earned on Reserve Fund
						  Investments
The credit balance of this account represents the
						  cumulative interest earned on all investments purchased with moneys in the
						  Reserve Fund (account 1111 R). Such interest shall not be recorded as income,
						  nor apportioned to the applicable reserves, but shall be considered as part of
						  the Replacements Reserve. Refer to Part 1645, Investments, for procedures in
						  connection with interest on Reserve Fund Investments.
2512 Gain or Loss on Disposition of Reserve Fund
						  Investments
The balance of this account represents the net of the
						  credits arising from the gain on disposition of all Reserve Fund investments
						  and the debits from loss on disposition. Such gain or loss shall not be
						  considered income or expense, nor apportioned among the applicable reserves,
						  but shall be considered as augmenting or decreasing the Replacement Reserve.
						  Refer to Part 1645, Investments, for procedures in connection with this
						  account.
2520 Vacancy and Collection Loss
						  Reserve
The credit balance of this account represents the
						  amount reserved and available for future vacancy and collection losses in
						  accordance with the procedures set forth in Part 1647, Operating Period
						  Accounting.
2530 Painting and Decorating Reserve
The credit balance of this account represents the
						  amount reserved and available for future painting and decorating expense in
						  accordance with the procedures set forth in Part 1647, Operating Period
						  Accounting.
2560 Reserve for Working Capital
The credit balance of this account represents the
						  excess of the funds borrowed from the proceeds of a State housing bond issue
						  over the development cost of the project, as certified by the commissioner when
						  the project is declared physically completed. This account is contra to account
						  1300, Working Capital, and is set up on the books only after the project is
						  declared physically completed. Section
						  70 of the
						  Public Housing Law provides that Working Capital cannot be in excess of two per
						  cent of development cost or $100,000, whichever is less. See section
						  1646-8.1 for the accounting
						  entries.
2590 Reserve for Operating Improvements
The credit balance of this account represents the
						  amounts reserved out of project revenues for operating improvements where
						  development funds are not available. The segregation of project revenues for
						  operating improvement reserves requires prior written division approval. Where
						  a Reserve for Operating Improvements is authorized to be established, the
						  provision should be charged to account 4899, Provision for Operating
						  Improvements.
2600 Accumulated Amortization
The credit balance of this account represents the
						  cumulative total of the amounts periodically set aside from income to liquidate
						  the local agency's indebtedness to the State of New York. Refer to Part 1644,
						  Debt Service, for entries and procedures in connection with the provision of
						  amortization out of income, the remittance of amortization payments to the
						  State, and the application of the local agency's payments by the State.
EARNED SURPLUS
2700 Income and Expense Clearance Account
This account operates as a profit and loss account into
						  which are closed, at the end of each fiscal year subsequent to the date of
						  substantial completion, the Income Control Account (account 3000) and the
						  Expense Control Account (account 4000). Refer to sections
						  1647-7.1 -1647-7.5 for detailed
						  accounting entries in connection with closing the books. The account also
						  operates as an earned surplus account for the accumulation of the periodically
						  recognized gains or losses, if any, resulting from the operations of the
						  project proper. Credit balances, if any, shall be expended for or applied only
						  to such purposes as the Division of Housing shall direct. The Division may
						  further require that such credit balances be deposited in a separate bank
						  account.
Income and expense arising from the operation of site
						  and offsite property, prior to demolition, from rehabilitated and relocated
						  properties, and during the initial operating period are closed into the
						  respective development cost accounts provided. Refer to the 1400 group of
						  account definitions and Part 1646, Development Period Accounting, for
						  instructions pertaining thereto.
2710 Prior Years Adjustments
This account is charged and credited with items of
						  expense and income amounting to $50 or more each, applicable to a given year
						  which have been discovered subsequent to the closing of the books for that
						  year. Prior years adjustments shall be held in suspense in this account pending
						  review and approval of the proposed disposition of the items by the division
						  pursuant to the procedure described in section
						  1647-7.6 of this Subchapter, to
						  which reference should be made. Prior year adjustments of less than $50 each
						  shall not be charged or credited to this account but shall be absorbed in the
						  applicable income (3000 group) or expense (4000 group) account. The $50 test
						  shall be applied to each individual transaction standing by itself.
2800 Capital Surplus
The credit balance of this account shall include all
						  funds or assets received by the local agency through appropriations by State,
						  city, county, village, or other political subdivision or by gift or
						  donation.
CONTROL ACCOUNTS
Accounts controlling income and expense applicable to
						  the operating period of the project proper shall be maintained in the general
						  ledger, as follows:
Income Control
This account shall control all income applicable to the
						  operating period of the project proper and shall be supported by the detailed
						  income accounts, in the 3000 group of accounts, the definitions of which will
						  be found immediately following those of the 1400 group of development cost
						  accounts.
4000 Expense Control Account
This account shall control all expenses applicable to
						  the operating period of the project proper and shall be supported by the
						  detailed expense accounts in the 4000 and 6000 group of accounts, the
						  definitions of which will be found immediately following those of the 3000
						  group of detailed income accounts.
The restriction of the use of the general ledger
						  control accounts defined above to income and expense applicable to the
						  operating period of the project proper should be noted. Income and expense from
						  operations during other phases of the local agency's program are capitalized
						  and controlled by various development cost accounts. The latter are supported,
						  as are the 3000 and 4000 Control Accounts defined above by detailed income and
						  expense accounts of the 3000, 4000 and 6000 groups, maintained in separate
						  income and expense analysis ledgers. See, for example, account 1420.4, Site
						  Income, and account 1420.5, Site Expense, for the control of income and expense
						  from the operation of the site of the project proper prior to construction,
						  account 1470.3, Net Deficit or (Income), for income and expense during the
						  initial operating period, and account 1440.16, Offsite Clearance, account
						  1440.17, Rehabilitation, and account 1440.18, Relocation of Buildings, for the
						  income and expense of operations in connection with the related
						  programs.
1400 GROUP-DEVELOPMENT COSTS
1410 Direct Costs
(b) It is anticipated that questions and problems will
						  arise concerning the extent of the distribution and allocation of costs
						  included in this group of accounts to the other development cost accounts and
						  to the cost of the related programs. Small agencies, whose personnel and
						  facilities discharge multiple function and large agencies which maintain
						  central offices and larger staffs making possible some separation of functions,
						  will be faced with these problems in varying degrees. In general, for the
						  purpose of simplicity, the secondary distribution of general overhead, service,
						  and other direct costs from the 1410 group of accounts to the other development
						  cost accounts or to the cost of related programs will not be required unless
						  the Subchapter, or the commissioner within his discretion specifically so
						  directs, or approval of the division has been obtained by the local agency for
						  a plan to serve as the basis of such distribution. It should be borne in mind
						  that the classification of development cost accounts is designed not only for
						  accounting purposes, but also to serve as a basis for the preparation of
						  development cost budgets, for executive control, and for compilation of
						  financial statistics and reports, for which purposes an objective
						  classification of overhead costs such as is provided herein has many advantages
						  over a functional classification of cost accounts involving secondary
						  distributions. Moreover, even from an accounting point of view, the practical
						  and theoretical difficulties of an equitable distribution over the various
						  phases of development and related programs proceeding simultaneously and, at
						  times, in highly fluid states, should be considered. Many questions regarding
						  the classification and distribution of overhead expenditures (as well as other
						  expenditures) may be resolved by reference to the application for financial
						  assistance and the approved development cost budget. Other questions should be
						  referred to the division.
1410.1 Payroll-Executive
(a) This account shall include the salaries of
						  executive employees whose services are certified by the local agency to be an
						  expense attributable to the planning, financing, construction, or operation
						  during the development period of a State-aided project, including related
						  programs.
The term
executive employees,
as used
						  in this Subchapter, includes but is not necessarily limited to the executive
						  secretary and staff, accountants, comptrollers, stenographers, typists, clerks,
						  office-machine operators, switchboard operators, file clerks, messengers,
						  errand boys, and similar employees. Do not include the salaries of such
						  employees attached to technical, legal, or informational staffs. (See accounts
						  1410.2, 1410.4 and 1410.16.)
1410.2 Payroll-Technical
(a) This account shall include the salaries of
						  technical employees of the local agency, including, but not limited to,
						  engineers, architects, draftsmen, technical clerks, and stenographers, typists,
						  secretaries, or other executive employees attached to the technical staff. Do
						  not include the salaries of employees comprising the inspection staff at the
						  site (see account 1430.7) or technical salaries for services (such as drawing
						  the actual construction plans) normally performed by other than agency
						  employees and covered by other classifications. (See account 1430.1.)
(b) No distribution of charges made to this account to
						  the costs of related programs shall be made unless the division so directs or
						  approves a plan to serve as the basis for such distribution.
1410.4 Legal Services and Expenses
(a) This account shall include the compensation of
						  attorneys, whether in the form of fees, retainers, or salaries, and necessary
						  expense in connection with the application for financial assistance, financing
						  and re-financing, general legal advice and assistance, consultations,
						  attendance at meetings, preparation of minutes, contracts and other legal
						  papers and instruments, litigation, liquidated matters, and other legal
						  services and expenses not chargeable to other accounts. Do not include fees of
						  outside bond counsel employed in connection with the temporary financing of
						  development costs (see account 1410.14) or legal services or expenses in
						  connection with the acquisition of land, title examination, closing of title,
						  condemnation proceedings, summary proceedings, or the collection of rents,
						  which shall be charged to the appropriate accounts in the 1420 or 1440 groups,
						  unless authority counsel is compensated on a flat retainer basis which, it will
						  be seen, will include the two latter types of services.
(b) Where counsel for a local agency is compensated for
						  ordinary and usual legal services during the development period on a retainer
						  basis, the entire retainer shall be charged to this account, unless the
						  division directs otherwise or approves a plan to serve as the basis of the
						  distribution of the retainer. The retainer agreement should be in writing,
						  enumerating the services to be rendered by the attorney and the agreement
						  should be approved by the local agency and the contract submitted to the
						  division for approval. Ordinary and usual legal services include, but are not
						  limited to general legal advice and assistance, consultations, attendance at
						  meetings, preparation of minutes, contracts, and other legal papers, documents
						  and instruments, litigation, liquidated matters, summary proceedings, legal
						  services in connection with the application for financial assistance, and with
						  financing operations. It is apparent that legal services and expenses in
						  connection with summary proceedings and collection of rents, if charged for
						  separately on a fee basis, will be charged to the appropriate accounts in the
						  1420 or 1440 groups. A schedule of fees should be submitted to this office for
						  approval.
(c) For services other than ordinary and usual legal
						  services, such as in connection with the acquisition of land, title
						  examination, closing of title, condemnation proceedings, or any other services
						  concerning the business of the project which might require special treatment
						  and the compensation for which is not included in the retainer, the charges
						  shall be distributed to the appropriate development cost accounts (including
						  this account) and to the costs of the related programs.
(d) Where compensation of agency counsel is wholly on a
						  fee basis, the fees for ordinary and usual legal services shall be charged to
						  this account in the same manner that a retainer would be, and the fees for
						  other than ordinary and usual legal services shall be charged to the
						  appropriate development cost accounts (including this account) and to the costs
						  of the related programs.
(e) Where counsel is an employee of the local agency on
						  a salary basis, the distribution to the legal cost accounts and costs or
						  related programs of legal salaries, including the salaries of secretaries,
						  stenographers, typists, clerks, and other executive employees attached to the
						  legal staff, shall be on a timesheet or other basis approved by the
						  division.
1410.5 Travel
(b) No distribution or allocation of travel expense to
						  other development cost accounts or to the costs of related programs shall be
						  made unless the division so directs or approves a plan to serve as the basis
						  for such distribution.
(c) See "Rules and Regulations Governing Traveling
						  Expense Chargeable to State-aided Projects", Subpart 1640-10.
1410.6 Rent-Office
(a) This account shall include rent paid for space
						  necessary for the conduct of business in connection with the development of the
						  project and related programs. It shall also be charged with the cost, when paid
						  by the local agency, of light, heat, moving of office furniture and equipment,
						  alterations of office space, and leasehold improvements in connection with the
						  establishment and operation of the office.
1410.7 Furniture and
						  Fixtures-Office
(b) Where separate offices are maintained in connection
						  with the management of site or offsite property prior to demolition, or for the
						  relocation of tenants, or for the use of field inspection staff, or in
						  connection with the offsite clearance, rehabilitation or relocation of
						  buildings programs, the original cost of furniture and fixtures required for
						  the separate offices shall be charged directly to the appropriate development
						  cost accounts provided for the respective activities. No distribution or
						  allocation of furniture and fixture costs to other development cost accounts,
						  or to the cost of related programs shall otherwise be made, unless the division
						  so directs or approves a plan to serve as a basis for such distribution or
						  allocation.
(c) Items charged to furniture and fixtures shall have
						  an estimated useful life extending beyond the development period, and may be
						  used for management or other purposes related to the development or operation
						  of the project and related programs as the need arises. Within the prescribed
						  limitations, the original purposes and intended location for which the item was
						  purchased shall determine to which account the charge shall be made. Subsequent
						  transfers to other purposes or locations shall not be reflected in the cost or
						  expense accounts. A physical inventory shall however be maintained of all items
						  charged to furniture and fixtures, which shall also furnish the current
						  location and ultimate disposition of each item so charged.
(d) In addition to the budgetary limitations governing
						  expenditures in general, purchases of items charged to furniture and fixtures
						  costing $100 or more shall require the separate prior approval of the
						  division.
(e) Bearing in mind that items having a relatively long
						  life may be needed for only a short time, consideration should be given to the
						  advantageous disposition of items when the need has passed and to the relative
						  merits of renting over purchasing. Proceeds from the sale of furniture and
						  fixtures made prior or subsequent to the date of substantial completion shall
						  be credited to the account to which the item was originally charged, providing
						  the development costs accounts remain open for the receipt of such credit.
						  Subsequent sales, shall be credited to account 3590, Miscellaneous Project
						  Income, unless the item sold is to be replaced, in which event, the proceeds
						  shall be credited to the cost of replacement.
1410.8 Office Supplies and Sundry
1410.9 Employees Retirement Fund
(a) This account shall be charged with the amount of
						  the local agency's contributions to retirement or pension funds, in connection
						  with payrolls chargeable to development costs or to the costs of related
						  programs, except as hereinafter provided. No charge shall be made to this
						  account prior to the date of entry of the local agency into the retirement
						  system.
1410.10 Communication Services
1410.11 Photographs
(b) Photographs similarly related to the progress of
						  related programs (offsite clearance, rehabilitation, and relocation of
						  buildings) shall be charged directly to the appropriate cost accounts
						  provided.
1410.12 Fidelity Bonds and Insurance
						  Premiums
(a) This account shall be charged with the costs of
						  premiums for fidelity bonds on officers and employees'; workmen's compensation
						  insurance covering members, officers, and employees of the local agency and the
						  State's construction advisor, vehicles; fire insurance on office furniture,
						  fixtures and equipment; public liability insurance with respect to office space
						  occupied by the local agency; robbery and safe burglary insurance; costs of
						  armored car service; and insurance of valuable and staffs; liability, fire, and
						  theft insurance on automobiles, including employees' papers, where carried by
						  the local agency.
(d) No distribution or allocation of fidelity bond and
						  insurance premiums of the types chargeable to this account, to other
						  development cost accounts or to the costs of related programs shall otherwise
						  be made unless the division so directs, or approves a plan to serve as the
						  basis of such distribution or allocation. While the number of types of
						  insurance chargeable to this account appears formidable, the premiums will be
						  found to be fairly nominal either individually, or in the aggregate, unless
						  workmen's compensation insurance on other than office and similar classes of
						  employees is involved.
(e) Reference should be made to account 1420.3 for the
						  charging of other types of insurance carried by the local agency during the
						  development period.
1410.13 Advertising
(b) The cost of advertising in connection with the
						  procuring of bids for demolition and other contracts in connection with the
						  offsite clearance, rehabilitation of buildings, or relocation of buildings
						  programs shall be charged directly to the appropriate cost accounts provided
						  for the respective activities.
1410.14 Fiscal Expense
(a) This account shall be charged with the fees of
						  outside bond counsel employed by the local agency in connection with the
						  issuance of temporary loan notes to parties other than the State, the cost of
						  advertising, and other expenses in connection with temporary financing during
						  the development period. This account shall not include fees of outside bond
						  counsel or other fiscal expense incurred in connection with the refinancing of
						  temporary indebtedness maturing subsequent to the date of substantial
						  completion, unless such refinancing entails the raising of additional funds
						  required to complete the project (see §
												1643-2.6). Do not include costs and
						  expenses in connection with the issuance of bonds by the State (see account
						  1420.7).
(b) No distribution or allocation of these charges to
						  the costs of related programs shall be made unless the division so
						  directs.
1410.15 State Construction Advisor, Auditor, and
						  Staffs
(a) This account shall be charged with the salaries,
						  travel, and other expenses of the State construction advisors, auditors, and
						  staffs, as billed by the division to the local agency. The local agency shall
						  also furnish the stationery, office supplies, facilities, etc., required by the
						  State construction advisors, auditors and staffs in the performance of their
						  duties, but the cost of such items as are furnished by the local agency shall
						  be charged to the respective cost accounts provided.
(b) No distribution or allocation of salaries and
						  travel expense chargeable to this account shall be made to other development
						  cost accounts or to the costs of related programs.
1410.16 Informational Expense
(b) No distribution or allocation of informational
						  expense to other development cost accounts or to the costs of related programs
						  shall be made unless the division so directs.
1410.17 Housing Survey
(b) No distribution or allocation of housing survey
						  costs shall be made to the costs of related programs unless the division so
						  directs.
1410.19 Cost of Application
(a) This account shall be charged with the costs of
						  preparing the application for the contract for State aid including, but not
						  limited to, the cost of photographs, maps, exhibits and schedules included
						  therein and the costs of paper, printing, mimeographing, stationery, special
						  stenographic and typing services, etc., in connection therewith. With respect
						  to an amended application, this account should be charged only with
						  extraordinary cost in connection therewith. It will be found that most such
						  amendments will be prepared by the local agency's own staff and that the costs
						  of paper, printing, mimeographing, stationery, stenographic and typing
						  services, etc., will be absorbed and reflected in the other accounts of the
						  1410 group. In general, therefore, only such costs or expenses as have been
						  incurred on account of the application or amendments thereto, and which would
						  not have been incurred if there were no application or amendments thereto
						  should be charged to this account.
(b) No distribution or allocation of application costs
						  shall be made to the costs of related programs unless the division so
						  directs.
(c) No overruns beyond the budgeted amount for this
						  item will be permitted without the prior approval of the division.
1420 Carrying Charges
This major group of cost accounts shall include
						  interest on indebtedness, taxes on property included within the project proper
						  and the cost of specified types of insurance for the project proper during the
						  development period; income and expense of operating the project proper prior to
						  construction; the cost of issuing State housing bonds and the premium on the
						  bonds, if any.
1420.1 Interest Expense
(a) This account shall be charged with interest during
						  the development period on funds borrowed to finance the development of the
						  project proper, but such charges shall not be made beyond the date of
						  substantial completion of the project proper. No further allocation of interest
						  charges for the development of the project proper shall be made to account
						  1420.5 (Site Expense) or to the 1470 (Preoccupancy) group of accounts.
(b) It should be noted that only that portion of the
						  total interest charge incurred which is allocable to the development of the
						  project proper is charged to account 1420.1. Interest allocable to the related
						  programs (Offsite Clearance; Rehabilitation; Relocation of Buildings) is
						  charged to the development cost accounts provided for each program. See section
						  1644-2.4 of Part 1644 of this
						  Subchapter, for details as to the basis of the interest allocation and as to
						  the cut-off points for the interest charges allocable to the respective related
						  programs.
(c) Premiums of $100 or less on temporary loan note
						  issues shall be credited directly to this account. Premiums of more than $100
						  shall however be credited to account 2230 upon receipt, and written off to
						  account 1420.1 pursuant to the procedures set forth in section
						  1644-2.5.
1420.2 Interest Income
(a) This account shall be credited, to the extent that
						  interest on borrowed funds has been charged to account 1420.1, with interest
						  (to the date of substantial completion) on Development Fund Investments and
						  interest on mortgages acquired by the local agency during the period of land
						  acquisition.
(b) Development Fund Investments, including those made
						  by the local agency directly, or by the State Comptroller on behalf of the
						  local agency, shall, however, be regarded as having been made first, from funds
						  allocated to offsite clearance, to the extent that funds have been borrowed for
						  that purpose, and secondly, from other funds, interest being credited
						  accordingly. The allocation of interest income to the offsite clearance
						  (1440.16) group of accounts shall cease on the date of substantial completion,
						  or the date of liquidation of the program, whichever is earlier.
1420.3 Insurance
(a) This account shall be charged with the cost of
						  premiums for the following types of insurance, in connection with operations on
						  the site of the project proper, for the period ending with the date of
						  substantial completion of the project proper:
(1) Owners, landlords and tenants public liability
						  insurance covering land, buildings to be demolished, and newly constructed
						  buildings.
(2) Fire and extended coverage insurance on buildings,
						  including buildings to be demolished and newly constructed buildings.
(3) Fire insurance on materials paid for directly by
						  the local agency and stored off the site.
(4) Boiler insurance, where carried.
Insurance normally carried by contractors and included
						  in the contract amount may, under unusual circumstances, be carried by the
						  local agency. The premiums, in such event, shall also be charged to this
						  account.
This account shall be charged with the cost of premiums
						  for owners contingent (protective) liability insurance carried for the
						  protection of the local agency while demolition and construction operations are
						  in progress. The full premium for this insurance should be charged to this
						  account, and no portion allocated to operations.
(b) Premiums on the types of insurance listed in
						  paragraph (a) above, carried in connection with property acquired for the
						  offsite clearance, rehabilitation, or relocation of buildings programs shall be
						  charged to the respective cost accounts provided.
(c) Reference should be made to account 1410.12 for the
						  charging of other types of insurance during the development period.
(d) The local agency should be guided in all insurance
						  matters by Part 1630 of this Chapter.
1420.4 Site Income
(a) This account shall reflect the income from the
						  operation of the site of the project proper for housing and other
						  income-producing purposes from the date of acquisition to the beginning of the
						  initial operating period. Rentals received from tenants occupying dwelling
						  units, stores, or other space on the site of the project proper, rentals for
						  rent of parking lots, revenues from outdoor advertising signs, or other
						  sources, and all other income arising from the use of the property of the
						  project proper shall be credited to this account.
(b) A separate income analysis ledger shall be
						  maintained and the applicable subaccounts of the 3000 group of accounts shall
						  be employed in accounting for such site income during development. The monthly
						  reports submitted during the development period shall include a report of site
						  management income on form DH-621. This account (1420.4) shall operate as a
						  control account in lieu of account 3000. While trial balances of the income
						  analysis ledger should be taken periodically to see if they agree with the
						  control, periodical closings of either the control or subsidiary accounts will
						  not be required. The report of site income on form DH-621 will therefore
						  reflect the cumulative income from the beginning of the site management period
						  in the
cumulative
column on the form, the income for the
						  current month being reported on the
current
column of the
						  form.
(c) A space inventory and a tenants accounts receivable
						  ledger shall also be maintained during the site management period. The full
						  scheduled rent shall be charged, and vacancy loss recorded, until such time as
						  the local agency, in anticipation of demolition, has declared, by appropriate
						  resolution, that the vacant dwelling units in a particular building or
						  buildings, or those vacated subsequent thereto, shall not be re-rented.
						  Effective with the first day of the month following that in which such
						  resolution has been passed, only the scheduled rent of dwelling units in such
						  building or buildings as are not vacant shall be charged, and vacancy loss
						  shall not be recorded. Write-offs of rent in connection with the relocation of
						  site tenants, as authorized by a resolution by the local agency approved by the
						  division, shall be considered a necessary cost of removal, and charged to
						  account 1440.13, Relocation of Tenants. Other authorized write-offs shall be
						  charged to the collection loss subaccount of account 1420.5, Site Expense. The
						  division will not approve such write-offs unless it is satisfied that the local
						  agency has been pursuing an aggressive collection policy and has exhausted all
						  means of collection to the maximum extent practicable.
1420.5 Site Expense
(b) Workmen's compensation insurance premiums and
						  employees' retirement fund contributions shall be charged to this account to
						  the extent that employees' salaries are so charged. Other overhead and service
						  costs falling in the 1410 classification of accounts shall not be charged to
						  this account unless separate office is maintained for site management and such
						  costs are directly connected with the operation of that office, or the local
						  agency has obtained the approval of the division for a plan to serve as the
						  basis for the distribution or allocation of such charges.
(c) Expenditures required to repair and maintain vacant
						  buildings on the site of the project proper shall be charged to this account,
						  but expenditures in connection with the preparation of buildings for demolition
						  shall be charged to account 1440.14.
(d) This account shall also be charged with the initial
						  and replacement costs of personal property, such as ranges and refrigerators,
						  required to operate the buildings on the site for income-producing purposes,
						  pending demolition. Where the personal property, however, is conveyed
						  simultaneously with the real property as part of the one transaction, the
						  entire consideration for the property shall be charged to account 1440.1. Land
						  Purchase Price, and no attempt should be made to separate the consideration for
						  the personal property from that for the real property for charging to the
						  respective accounts. Sales of personal property, however acquired, shall be
						  considered sales of salvage and shall be credited to account 1440.14,
						  Demolition and Clearing.
(e) Applicable subaccounts of the 4000 group shall be
						  employed in accounting for the expenses of site management, this account being
						  operated as a control account in lieu of account 4000. A separate Expense
						  Analysis Ledger shall be maintained and the monthly reports submitted during
						  the development period shall include a report of site management expense on
						  form DH-621. While trial balances of the site management books should be taken
						  periodically to see if they agree with the control, periodical closings of the
						  control and subsidiary accounts will not be required, as during the project
						  management period. The report on form DH-621 will therefore reflect in the
cumulative
column of the form the cumulative expense of
						  operating the project site from the beginning of the site management period and
						  the current column of the form will reflect the results of operation for the
						  current month being reported.
1420.6 Real Estate Taxes
(a) This account shall be charged with real estate
						  taxes on land and improvements included within the site of the project proper,
						  but not beyond the date of substantial completion of the project proper. No
						  allocation of tax charges shall be made to Site Expense (account 1420.5) or to
						  the Preoccupancy (1470) group of accounts.
(b) Real estate taxes on property acquired for the
						  offsite clearance, rehabilitation or relocation of buildings programs shall be
						  charged to the respective cost accounts provided.
(c) All real property acquired by a local agency in
						  connection with the development of the project proper is taxed on the basis of
						  the assessed valuation of the retained land and the improvements thereon, as of
						  the date of the contract for State aid. So much of the value of the property
						  included in a State project, as represents an increase over the assessed
						  valuation of the property retained both land and improvements, as of the date
						  of the contract for State aid, is exempt from any and all State, county, city,
						  village, town, school and special district taxes. In no event may any
						  municipality or county assess the property included in the project proper at an
						  amount in excess of the actual cost of the project.
(d) Where a contract for State aid is amended, the date
						  of the original contract, and not of the amendments thereto, shall govern with
						  respect to assessed valuations, unless the amendment provides for the
						  acquisition of land and improvements, not previously included. In such event,
						  the date of the amended contract shall govern with respect to the additional
						  land and improvements.
(e) Except for local property taxes, a local agency is
						  exempt from the payment of any taxes or fees to the State or any subdivision
						  thereof, or to any officer or employee of the State or any subdivision
						  thereof.
(f) The taxation of real property acquired by a local
						  agency in connection with related offsite clearance, rehabilitation, or
						  relocation of buildings programs presents special problems. These should be
						  referred to the division, individually for ruling.
1420.7 Cost of Borrowing
(a) This account shall be charged with the actual
						  direct costs incurred by the State in connection with the issuance of housing
						  bonds, as certified by the State Comptroller. Such cost will include printing,
						  advertising, etc. Do not include fiscal and other fees (see account 1410.14) or
						  other costs incurred by the local agency in connection with temporary or
						  permanent financing.
(b) The cost of borrowing shall be considered a
						  development cost of the project proper and shall be charged to this account
						  whether the issue of bonds is prior or subsequent to the date of substantial
						  completion. The final development cost of the project shall not be determined
						  until the cost of borrowing is certified by the State Comptroller. No
						  distribution or allocation of the cost of borrowing shall be made to the costs
						  of related programs unless the division otherwise directs.
1420.8 Premium on State Housing
						  Bonds
(a) This account shall be credited with the premium, if
						  any, realized from the sale of State housing bonds, as certified by the State
						  Comptroller.
(b) The premium shall be considered a credit to
						  development costs whether the issue of bonds is prior or subsequent to the date
						  of substantial completion. The Comptroller may deposit the premium into the
						  State Housing Debt Fund and apply it to the payment of the next interest
						  payment due on the bonds. If all or a portion of such interest payment has been
						  charged to operating expenses, a transfer of funds from the Administration Fund
						  to the Development Fund will be required. See Part 1644, Debt Service, for
						  entries and procedures.
1420.9 War Delay Period
This account was established to determine the
						  additional development cost of a project due to the delay resulting from World
						  War II. The use of this account has been discontinued and it is provided here
						  solely for recording and carrying forward balances by those local agencies
						  which had occasion to make use of the account during the war.
1430 Architectural and Engineering
This major group of cost accounts shall include
						  architectural and engineering costs, including supervision and inspection, to
						  the extent that such costs are directly traceable to the development of the
						  project proper. Architectural and engineering costs in connection with related
						  programs shall be charged directly to the costs of those programs.
1430.1 Fees-Under Contract
(a) This account shall be charged with all costs
						  (except as specified in par. [b] below) for architectural and engineering work
						  in connection with the development of the project proper, performed on a
						  fixed-fee basis, or under a fixed-fee plus reimbursable costs type of contract,
						  or by employees of the local agency engaged in drawing up the actual plans and
						  specifications in lieu of outside architects and engineers.
1430.2 Fees-Other
This account shall be charged with the costs of special
						  services in connection with architectural and engineering work for the project
						  proper, performed on a per diem or time basis.
1430.3 Travel
This account shall be charged with travel expenses
						  and/or per diem allowances, in lieu of subsistence, of architects and engineers
						  (other than local agency employees) when on official business of the local
						  agency in connection with the development of the project proper. Do not include
						  travel expense of officers or employees of the local agency (see account
						  1410.5) or travel expense of the State's construction advisor, auditors, and
						  staffs (see account 1410.15).
1430.4 Borings and Test Pits
This account shall be charged with all costs incurred
						  for borings or test pits in connection with the selection of sites for the
						  project proper or the compilation of engineering data.
1430.5 Blueprinting
(b) This account shall also be charged with the costs
						  of technical supplies where the architectural and engineering work is performed
						  by employees of the local agency.
(c) This account shall be credited with any moneys
						  received from sales of blueprinting, plans, and specifications. Moneys received
						  as deposits on plans on specifications, shall first be credited to account
						  2220, Deposits During Development Period, and taken up as income to be credited
						  to this account at the time and to the extent that the liability of the local
						  agency for the return of such deposits ends.
1430.6 Models
This account shall be charged with the costs of any
						  models necessary to the development of the project proper, which have not been
						  provided for under the architects' and engineers' contracts and which have been
						  approved by the division.
1430.7 Inspection Costs
1430.10 Material Testing
This account shall be charged with the costs of tests
						  of materials, such as concrete, entering into the construction of the project
						  proper.
1440 Acquisition of Sites
1440.1 Land Purchase Price
(a) This account shall be charged with the cost of the
						  land and improvements acquired for the project proper to the extent approved by
						  the commissioner. Do not include the cost of land and improvements acquired for
						  the offsite clearance or rehabilitation programs or the cost of land to which
						  relocated buildings are to be moved.
(c) The local agency shall set up and maintain a card
						  record on form DH-Land Record (see Part 1646) for each parcel included within
						  the site of the project proper. Interest on mortgages acquired prior to the
						  acquisition of title shall be accrued monthly and collected when due, until the
						  mortgage is merged into the fee. The local agency shall also set up and
						  maintain a space inventory for the control of rents on improved property on the
						  site until demolition thereof. Income and expense from the management of site
						  property prior to construction will be reflected in accounts 1420.4, and
						  1420.5, respectively.
1440.2 Fixture Awards
This account shall be charged with the amount of
						  condemnation awards for fixtures and equipment on the site of the project
						  proper, when such awards are made separately from condemnation awards for land
						  and improvements other than fixtures and equipment. Do not include interest on
						  such awards (see account 1440.3) or condemnation costs in connection therewith
						  (see account 1440.11).
1440.3 Interest on Condemnation
						  Awards
This account shall be charged with the amount of the
						  interest, if any, on all condemnation awards with respect to the project
						  proper, whether in connection with land, improvements, or fixtures.
1440.4 Surveys and Maps
This account shall be charged with the cost of
						  boundary, plot, property line, topographical, utility, and other surveys of the
						  site of the project proper, and the cost of monuments, markers, maps,
						  blueprints, and photostats in connection therewith. These surveys are made in
						  connection with land acquisition, and as a basis for the architectural and
						  engineering design of the project, after the site has been selected and
						  approved and the contract for State aid signed. They should not be confused
						  with the Housing Survey (see account 1410.17), or surveys of alternative sites
						  made in connection with the application for financial assistance (see account
						  1410.19), or surveys made in connection with the relocation of tenants (see
						  account 1440.13).
1440.5 Appraisal Fees
This account shall be charged with the cost of fees for
						  the appraisal of all land and improvements to be acquired for the project
						  proper, on sites approved by the commissioner. Do not include the cost of court
						  testimony on appraisals, when required in connection with condemnation
						  proceedings (see account 1440.11).
1440.6 Title Examination
This account shall be charged with the cost of
						  examination of title, preparation of abstracts, furnishing of title insurance,
						  and legal and other fees in connection with the examination of title of land to
						  be acquired for the project proper. The prior approval of the division's legal
						  bureau is required for fees paid under this item.
1440.7 Consideration for Options
This account shall be charged with considerations paid
						  to bind agreements to purchase properties for the site of the project proper.
						  Such considerations may take the form of binders prior to the execution of the
						  contract for the purchase of land, or of deposits paid upon contract, or of
						  options. Upon the closing of title, the amount of the binder, deposit, or
						  option applicable to the particular property shall be transferred to account
						  1440.1, Land Purchase Price, to which account the balance of the purchase price
						  will be charged directly. When the acquisition of the project site has been
						  completed, there will remain in account 1440.7 the costs of binders, deposits
						  and options for properties not acquired and which are not recoverable.
1440.8 Legal Services and Expenses (Land
						  Only)
This account shall be charged with attorneys' fees or
						  salaries, as have the prior approval of the division, process officer fees and
						  other incidental expenses, and the cost of other necessary legal services in
						  connection with land closings and land acquisition for the project proper. Do
						  not include legal services and expenses in connection with the examination of
						  title (see account 1440.6) or condemnation proceedings (see account 1440.11) or
						  fees, salaries, and commissions paid to an attorney acting in other than a
						  legal capacity, as for example, in the negotiation for the purchase of land
						  (see account 1440.10). Legal services and expenses in connection with the
						  management of the site prior to construction shall be charged to account
						  1420.5, Site Expense during Development, unless such services are included in
						  the retainer paid to counsel for the local agency and charged to account
						  1410.4.
1440.10 Negotiation Costs
This account shall be charged with commissions or
						  salaries paid for negotiating the purchase of land for the project proper with
						  the prior approval of the division.
1440.11 Condemnation Costs
This account shall be charged with all costs and
						  expenses, except interest on condemnation awards, incurred in connection with,
						  and incidental to, the acquisition, through condemnation proceedings, of the
						  site of the project proper, or any part thereof, and the improvements,
						  fixtures, and equipment thereon, such as legal fees and expenses, fees for
						  court testimony, court costs, stenographic costs, etc. This account should not
						  be charged with any costs that would ordinarily be incurred in connection with
						  the acquisition of the site if there were no condemnation proceedings.
1440.13 Relocation of Tenants
(a) This account shall be charged with the costs of
						  relocating tenants on the site of the project proper so that demolition and
						  construction can proceed. Relocation costs shall include the salaries of
						  persons especially employed to make surveys of vacant dwellings or to locate
						  dwellings for the purpose of relocating tenants housed on the site at the time
						  of acquisition and other costs and expenses in connection with relocating site
						  tenants, such as the cost of equipping, operating, and maintaining a field
						  office, local transportation, telephone, and sundry costs incurred in locating
						  dwellings available for relocation, or for registering and listing such
						  dwellings, and so much of the necessary cost of voluntary removal or cash
						  considerations in lieu thereof, as may be approved by the division, but in no
						  event shall the necessary cost of removal be in excess of $200 for any family.
						  The Public Housing Law also permits the payment of the necessary costs of
						  removal for business or commercial tenants on the site, but not in excess of
						  $500 for any one tenant. Rents due from site tenants and cancelled, as an
						  inducement to remove from the site, in accordance with a resolution of the
						  local agency, as approved by the division, shall be a charge to the necessary
						  cost of removal to the extent provided by such resolution. Subaccounts or other
						  analysis of the charges to this account shall be maintained of the necessary
						  costs of removal, and of the other relocation costs. Local agency procedures
						  relating to the payment of relocation costs to residential and commercial
						  tenants should be submitted to the division for prior approval.
1440.14 Demolition and Clearing
(a) This account shall be charged with the net cost of
						  demolition and of clearing the site of the project proper, including
						  demolishing and clearing away of structures, other improvements, and debris on
						  the site, water charges, if any, for wetting down during demolition,
						  boarding-up vacant properties prior to demolition, stripping properties of
						  piping, equipment, etc., to reduce loss by theft, the wages of watchmen
						  employed on the site prior to completion of demolition, the moving and storing
						  of salvaged equipment, such as refrigerators and ranges, pending final sale,
						  erection of sidewalks, bridges and fences around cleared parcels, etc. Where
						  any of these items are included in a demolition contract, the contract price
						  shall be charged to this account. Where the contract calls for a payment to be
						  made to the local agency, this account shall be credited. This account shall
						  also be credited with amounts received on sale of salvage. The use of a
						  schedule or subaccounts to analyze the entries made to this account is
						  recommended. Suggested classifications are:
(1) Demolition and Clearing-Contract
(2) Salaries of Watchmen
(3) Demolition and Clearing-Other Expense
(4) Sales of Salvage
(b) Where the project plan calls for moving buildings
						  on the site of the project proper to another location, in lieu of demolition,
						  all costs in connection therewith shall be charged to account 1440.18,
						  Relocation of Buildings.
(c) This account should also be credited with amounts
						  received from an insurance company for salvage destroyed by fire or stolen
						  prior to its sale.
1440.15 Sale of Site Land
(a) This account shall be credited with the proceeds of
						  the sale of land or excess land acquired for the project proper and sold prior
						  to the determination of the final development cost and shall be charged with
						  the incidental costs incurred in connection with such sale, such as legal
						  services and expenses, title examination, negotiation costs, appraisal fees,
						  etc. The proceeds of the sale shall be deposited in the Development Fund and
						  disposition thereof shall not be made except in accordance with the
						  instructions of the division. The proceeds of the sale of land in connection
						  with offsite clearance, rehabilitation, and relocation of building programs
						  shall be credited to similar subaccounts in the respective cost
						  classifications.
(b) See account 2113, Deposits-Other Than Tenants, for
						  the handling of deposits, binders or options received by the local agency in
						  connection with the sale of site land.
1440.16 Offsite Clearance
(a) This account shall be charged with the net cost of
						  the offsite clearance program, giving effect to any credits from the operation
						  of the offsite property, the sale of salvage, the sale of land, interest
						  received on investments of offsite funds, etc.
(b) Where a tract of land included in the offsite
						  clearance program is ceded without cost to a municipality in accordance with
						  the loan and subsidy contract, no accounting entry is necessary. The authority
						  should bear in mind that its liability for real estate taxes on the tract
						  ceases as of title vesting date and that insurance policies applicable to the
						  tract should be cancelled and unearned premium recovered. In addition, the
						  local agency should indicate the transfer on the land record card for the
						  parcel (see §
												1646-4.3).
(c) Offsite clearance represents a program within a
						  program, related to the development of the project proper, and embracing the
						  acquisition of the offsite property, operation in some cases, of the property
						  prior and subsequent to demolition, demolition and clearing, and finally, the
						  disposition of the land. Accordingly, all costs in connection with the offsite
						  clearance program, including all credits related thereto, shall be capitalized
						  and charged to this account until such time as the program has been liquidated.
						  Ordinarily, all offsite clearance activity will have been completed before the
						  final development cost is determined.
(d) A separate cost analysis ledger shall be
						  maintained, using the account classification of the 1400 group of subaccounts
						  to the extent applicable, according to the following general scheme.
1440.16(10)
Direct Costs, Offsite
1440.16(10.1)
Payroll-Executive
1440.16(10.2)
Payroll-Technical
1440.16(10.4)
Legal Services and Expenses, etc.
1440.16(20)
Carrying Charges, Offsite
1440.16(20.1)
Interest
1440.16(20.3)
Insurance
1440.16(20.4)
Offsite Income
1440.16(20.5)
Offsite Expense
1440.16(20.6)
Taxes
1440.16(40)
Land Acquisition Cost, Offsite
1440.16(40.1)
Land Purchase Price
1440.16(40.2)
Fixture Awards
1440.16(40.3)
Interest on Condemnation Awards
1440.16(40.15)
Sale of Offsite Land, etc.
1440.16(80)
Other Charges and Credits to Offsite
									 Clearance Cost, etc.
In general, it will be found that all offsite clearance
						  costs will fall into the above classifications and that there will be no
						  occasion to use the Architectural and Engineering (1430), Structures, Equipment
						  and Improvements (1460), Preoccupancy Charges and Credits (1470), or
						  Contingency (1490) classifications.
(e) The definitions, instructions, and procedures with
						  respect to the classification of development costs for the project proper shall
						  apply with equal force and effect to the classification of offsite clearance
						  costs.
(g) The monthly report submitted during the development
						  period of the project proper shall include a separate report of offsite
						  clearance costs on form DH 213, and a report of the results of offsite
						  management on form DH 621. When the project proper has entered the management
						  period these reports shall be made quarterly. The reports shall continue to be
						  made until final disposition of the offsite property.
In general, only such costs or expenses as have
						  been incurred on account of the offsite clearance program, and which would not
						  have been incurred if there were no offsite program, should be charged to
						  Offsite Clearance, account 1440.16.
They are here summarized as
						  follows:
(1)
Direct Costs (1410 group)
. Where
						  separate offices are maintained in connection with the offsite clearance
						  program, or offsite management, the costs of operating such offices, including
						  the salaries of executive personnel employed therein, office rent, furniture
						  and fixtures, sundry office expense, communications services, and premiums for
						  fire, public liability, safe and robbery insurance applicable thereto shall be
						  charged to the cost of offsite clearance. Workmen's compensation insurance
						  premiums and employees retirement fund contributions shall be charged to this
						  account to the extent that payrolls are so charged. Photographs showing the
						  progress of offsite clearance work, and the cost of advertising for bids for
						  demolition of offsite property shall be charged to this account directly, as
						  shall the cost of other than ordinary and usual legal services, in connection
						  with offsite clearance, not covered by a retainer. No distribution or
						  allocation of Direct Costs (1410 group) to the cost of offsite clearance, shall
						  otherwise be made, unless the division so directs, or approves a plan to serve
						  as the basis of such distribution.
(2)
Carrying Charges (1420 group).
Offsite clearance shall be charged with the interest on funds borrowed to
						  finance the offsite clearance program until the project is declared
						  substantially completed or the program is liquidated, whichever is earlier.
						  Taxes and insurance on offsite property shall be charged to offsite clearance
						  until the program is liquidated. Any insurance carried by the authority to
						  protect the local agency during demolition operations on offsite property
						  should also be charged to the 1440.16 group of accounts. No distribution, as
						  between the project proper and the offsite clearance program, shall be made of
						  the cost of borrowing, or the premium on State housing bonds. Interest on
						  offsite clearance funds investments shall be credited in accordance with the
						  procedure described under 1420.2.
1440.17 Rehabilitation
(a) This account shall be charged with the net cost of
						  rehabilitating existing buildings, giving effect to any credits from the
						  operating of the rehabilitated property, the sale of the property, etc.
(b) Rehabilitation represents a program within a
						  program, related to the development of the project proper, and embracing the
						  acquisition of buildings, their conversion, modernization, and rehabilitation
						  for occupancy, the operation of the rehabilitated buildings, and their eventual
						  disposition. All costs and expenses of the rehabilitation program, and all
						  credits related thereto, shall be capitalized and charged to this account until
						  such time as the program is liquidated. Ordinarily, all rehabilitation activity
						  will have been completed before the date of substantial completion.
(c) A separate cost analysis ledger shall be
						  maintained, using the account classifications of the 1400 group as subaccounts
						  to the extent applicable, according to the following general scheme:
1440.17(10)
Direct Costs, Rehabilitation
1440.17(10.1)
Payroll-Executive, etc.
1440.17(20)
Carrying Charges,
									 Rehabilitation
1440.17(20.1)
Interest
1440.17(20.4)
Rehabilitation Income
1440.17(20.5)
Rehabilitation Expense, etc.
1440.17(30)
Architectural and Engineering,
									 Rehabilitation, etc.
1440.17(30.1)
Fees-Under Contract, etc.
1440.17(40)
Land Acquisition Costs,
									 Rehabilitation
1440.17(40.1)
Land Purchase Price
1440.17(40.15)
Sale of Rehabilitated Property, etc.
1440.17(60)
Structures, Equipment and Improvements,
									 etc.
1440.17(80)
Other Rehabilitation Costs and Credits,
									 etc.
(d) The definitions, instructions, and procedures with
						  respect to the classification of development costs for the project proper shall
						  apply with equal force and effect to the classification of rehabilitation
						  costs.
(3) No provisions shall be made for reserves for
						  vacancy and collection losses, painting and decoration, replacements, or
						  amortization.
(4) Rentals must be set at levels high enough to cover
						  all operating costs. Deficits in operation, if any, will be met out of
						  development funds, not subsidies.
(5) Provision for amortization of indebtedness,
						  subsequent to the issue of State housing bonds, will all be charged to project
						  management expense, and will not be a charge to rehabilitation.
(f) The local agency upon the request of the division
						  shall submit a quarterly report on rehabilitation cost and operations. See
						  section 1646-7.2, Schedule Number 10 and
						  section 1646-7.13 for further details as to
						  the required forms to be furnished with the quarterly report.
(g) Rehabilitation costs shall include all costs
						  directly connected with or attributable to the rehabilitation program.
In general, only such expenses as have been incurred on account of the
						  rehabilitation program, and which would not have been incurred if there were no
						  rehabilitation program, should be charged to Rehabilitation, account
						  1440.17.
Procedures with respect to the distribution or allocation of
						  Direct Costs (1410 group) and Carrying Charges as between the project proper
						  and the rehabilitation program, have been described under the various
						  subaccounts of these groups, to which reference should be made. They are here
						  summarized, as follows:
(1)
Direct Costs (1410 group).
Where
						  separate offices are maintained in connection with the rehabilitation
						  development program, the costs of operating such offices, including the
						  salaries of executive personnel employed therein, office rent, furniture and
						  fixtures, sundry office expense, communication services, and premiums for fire,
						  public liability, safe and robbery insurance applicable thereto shall be
						  charged to this account. Where separate offices are maintained in connection
						  with rehabilitation management, the costs of operating such offices as
						  described above, shall be charged to account 1440.17(20.5), Rehabilitation
						  expense. The cutoff point for separate office costs as between rehabilitation
						  development and rehabilitation management shall be the first day of the month
						  following that in which 95 per cent of the total dwelling units included in the
						  rehabilitation program became available for occupancy. Workmen's compensation
						  insurance premiums and employees retirement fund contributions shall be charged
						  to the 1410 group of accounts to the extent that payrolls are so charged.
						  Photographs showing the progress of rehabilitation work and the cost of
						  advertising for bids for rehabilitation contracts shall be charged to this
						  account directly, as shall the cost of other than ordinary and usual legal
						  services in connection with the rehabilitation development program not covered
						  by a retainer. No distribution or allocation of Direct Costs (1410 group) to
						  the cost of rehabilitation shall otherwise be made, unless the division so
						  directs, or approves a plan to serve as the basis of such distribution.
(2)
Carrying Charges (1420 group).
During the rehabilitation development program, this account shall be charged
						  with the interest on funds borrowed to finance the rehabilitation program, and
						  with taxes and insurance on property acquired in connection therewith, as well
						  as with insurance required to protect the local agency during construction
						  operations. Beginning with the first day of the month following that in which
						  95 per cent of the total dwelling units included in the rehabilitation program
						  became available for occupancy, the 1440.17(20.5) group of accounts shall be
						  charged with the interest on funds borrowed to finance the program and taxes
						  and insurance on the property acquired for the rehabilitation program. No
						  distribution, as between the project proper and the rehabilitation program,
						  shall be made of the cost of borrowing, or the premium on State housing
						  bonds.
1440.18 Relocation of Buildings
(a) This account shall be charged with the net cost of
						  relocating existing buildings giving effect to any credits from the operation
						  of the buildings, or their sale, etc.
(b) Relocation of buildings represents a program within
						  a program, embracing the acquisition and preparation of the sites to which the
						  buildings are to be moved, preparation of the moved buildings for occupancy,
						  operation of the buildings, and finally, their disposition. Accordingly, all
						  costs in connection with the relocation of buildings program, including all
						  credits related thereto, shall be capitalized and charged to this account until
						  such time as the program is liquidated. Ordinarily, all relocation of buildings
						  activity will have been completed before the final development cost is
						  determined. An analysis of the cost of relocation, revenues, and expenses, with
						  respect to each building relocated shall be maintained.
(c) A separate cost analysis ledger shall be
						  maintained, using the account classifications of the 1400 group as subaccounts
						  to the extent applicable, according to the following general scheme:
1440.18(10)
Direct Costs, Relocation of
									 Buildings
1440.18(10.1)
Payroll-Executive, etc.
1440.18(20)
Carrying Charges, Relocation of
									 Buildings
1440.18(20.1)
Interest
1440.18(20.4)
Relocated Building Income
1440.18(20.5)
Relocated Building Expense, etc.
1440.18(30)
Architectural and Engineering, Relocation
									 of Buildings
1440.18(30.1)
Fees-Under Contract, etc.
1440.18(40)
Land Acquisition Costs, Relocation of
									 Buildings
1440.18(40.1)
Land Purchase Price
1440.18(40.15)
Sale of Relocated Property, etc.
1440.18(60)
Structures, Equipment, and
									 Improvements
For contract and other costs in connection with
									 moving, preparing new site, connecting and disconnecting utilities, plumbing,
									 heating, electrical work, etc.
1440.18(80)
Other Relocation of Buildings Cost and
									 Credits
In general, it will be found that all relocation of
						  buildings costs will fall into the above classifications. It will also be
						  found, generally speaking, that the buildings included in the relocation of
						  buildings program will have been acquired in connection with the assembly of
						  the site of the project proper or the offsite, and are being moved to house
						  site tenants, in lieu of demolition. In such event, the cost of the building
						  itself shall remain as a charge to the land acquisition costs of the site, or
						  offsite, the relocation of buildings account being charged only for the costs
						  of moving, acquiring and preparing the new site, etc.
(d) The definitions, instructions, and procedures with
						  respect to the classification of development costs for the project site shall
						  apply with equal force and effect to the classifications of relocation of
						  buildings costs.
The full scheduled rent shall be charged, and vacancy
						  loss recorded, beginning with the first day of the month following that in
						  which 95 per cent of the total dwelling units included in the relocation of
						  building program become available for occupancy. Prior to this date, such
						  Direct Costs (1410 classification) not attributable to the operation of a
						  separate relocation of buildings management office, and such Carrying Charges
						  (1420 classification) as are chargeable to relocation of building costs shall
						  be charged to the appropriate accounts in the 1440.18(10) and 1440.18(20)
						  groups (exclusive of account 1440.18[20.5]) but subsequent thereto, such costs
						  shall be charged to Relocated Buildings Expense, account 1420.18(20.5). Other
						  features of the accounting during the operation of the relocated buildings
						  are:
(3) No provisions shall be made for reserve for vacancy
						  and collection losses, painting and decorating, replacements or
						  amortization.
(4) Rentals must be set at levels high enough to cover
						  all operating costs. Deficits in operation, if any, will be met out of
						  development funds, not subsidies.
(5) Provision of amortization of indebtedness,
						  subsequent to the issue of State housing bonds, will be charged to project
						  management expense and will not be a charge to Relocation of Buildings.
(f) The local agency shall submit a quarterly report on
						  relocation of buildings cost and operations. See section
						  1646-7.2, schedule number 11 and
						  section 1646-7.13 for further details as to
						  the required forms to be furnished with the quarterly report.
(g) Relocation of building cost shall include all costs
						  directly connected with or attributable to the relocation of buildings program.
In general, only such costs of expenses as have been incurred on
						  account of the relocation of buildings program, and which would not have been
						  incurred if there were no relocation of buildings program, should be charged to
						  Relocation of Buildings, account 1440.18.
Procedures with respect to
						  the distribution or allocation of Direct Costs (1410 group) and Carrying
						  Charges (1420 group), as between the project proper and the relocation of
						  buildings program have been described under the various subaccounts of these
						  groups, to which reference should be made. They are here summarized as
						  follows:
(1)
Direct Costs (1410 group).
Where
						  separate offices are maintained in connection with the relocation of buildings
						  development program, the costs of operating such offices, including the
						  salaries of executive personnel employed therein, office rent, furniture and
						  fixtures, sundry office expense, communication services, and premiums for fire,
						  public liability, safe and robbery insurance applicable thereto shall be
						  charged to this account. Where separate offices are maintained in connection
						  with relocation of buildings management, the costs of operating such offices as
						  described above, shall be charged to account 1440.18(20.5), Relocation of
						  Buildings Expense. The cutoff point for separate office costs as between
						  relocation of buildings development and relocation of buildings management
						  shall be the first day of the month following that in which 95 per cent of the
						  total dwelling units included in the relocation of buildings program became
						  available for occupancy. Workmen's compensation insurance premiums and
						  employees retirement fund contributions shall be charged to 1410 group of
						  accounts to the extent that payrolls are so charged. Photographs showing the
						  progress of relocation of buildings work and the cost of advertising for bids
						  for relocation of buildings contracts shall be charged to this account
						  directly, as shall the cost of other than ordinary and usual legal services in
						  connection with the relocation of buildings development programs not covered by
						  a retainer. No distribution or allocation of Direct Cost (1410 group) to the
						  cost of relocation of buildings shall otherwise be made, unless the division so
						  directs, or approves a plan to serve as the basis of such distribution.
(2)
Carrying Charges (1420 group).
During the relocation of buildings development program, this account shall be
						  charged with the interest on funds borrowed to finance the relocation of
						  buildings program, and with taxes and insurance on property acquired in
						  connection therewith, as well as with insurance required to protect the local
						  agency during the moving and construction operations. Beginning with the first
						  day of the month following that in which 95 per cent of the total dwelling
						  units included in the relocation of buildings program became available for
						  occupancy, the 1440.18(20.5) group of accounts shall be charged with the
						  interest on funds borrowed to finance the program and taxes and insurance on
						  the property acquired for the relocation of buildings programs. No
						  distribution, as between the project proper and the relocation of buildings
						  program, shall be made of the cost of borrowing, or the premium on State
						  housing bonds.
1460 Structures, Equipment and
						  Improvements
(c) The account numbers to which contracts are charged
						  should not be confused with the contract numbers used by the local agency to
						  identify individual contracts and in reporting to the division on the schedule
						  of contract awards. Contract numbers for the major contracts and the accounts
						  to which they should be charged follow. Subaccount numbers for contracts
						  charged to the 1460 group should be assigned as described above:
Contract no.
Contract
Account no.
1
Surveys
1440.4
2
Test Borings
1430.4
3
Architects
1430.1
4
Demolition
1440.14
5
Foundations
1460.1
6
General Construction
1460.1
7
Heating and Ventilating
1460.3
8
Electrical
1460.4
9
Plumbing
1460.2
10
Elevators
1460.8
11
Testing of Concrete
1430.10
12
Street and Yard Improvements
1460
13
Topsoil and Planting
1460.5
14
Refrigerators
1460.7
15
Ranges
1460.6
Where a contract is awarded to more than one
						  contractor, the individual contracts should be distinguished by suffixing a
						  letter of the alphabet in the order of the awards. Thus, demolition contracts
						  would be identified as 4A, 4B, 4C etc. When contracts are combined, the
						  combined contract shall be identified by using the component contract numbers.
						  Thus, foundations and general construction are sometimes awarded as one
						  contract. If so, the contract should be identified as contract no. 5-6.
(d) A physical inventory shall be maintained of all
						  items of equipment charged to this group of accounts.
(e) Site, as used herein, refers to the site of the
						  project proper.
(f) Mandatory account numbers to be used in the 1460
						  group are as follows:
1460.1 General Construction
This account shall be charged with the value of the
						  work completed by the general contractor. The total of this account should
						  agree with the amount entered in the column headed, "Value of Work Completed"
						  on the Schedule of Contract Awards, Exhibit 26 of Appendix S-11.
1460.2 Plumbing
This account shall be charged with the value of work
						  completed by the plumbing contractor. The total of this account should agree
						  with the amount entered in the column headed, "Value of Work Completed" on the
						  Schedule of Contract Awards, Exhibit 26 of Appendix S-11.
1460.3 Heating and Ventilating
This account shall be charged with the value of work
						  completed by the heating and ventilating contractor. Payments for temporary
						  heat (labor and fuel) should be charged to account 1460.11. The total of this
						  account should agree with the amount entered in the column headed "Value of
						  Work Completed" on the Schedule of Contract Awards, Exhibit 26 of Appendix
						  S-11.
1460.4 Electrical
This account shall be charged with the value of work
						  completed by the electrical contractor. The total of this account should agree
						  with the account entered in the column headed, "Value of Work Completed" on the
						  Schedule of Contract Awards, Exhibit 26, of Appendix S-11.
1460.5 Topsoil and Planting
This account shall be charged with the value of work
						  completed by the topsoil and planting contractor. The total of this account
						  should agree with the amount entered in the column headed, "Value of Work
						  Completed" on the Schedule of Contract Awards, Exhibit 26 of Appendix
						  S-11.
1460.6 Ranges
This account shall be charged with the cost of ranges
						  purchased by the local agency for the tenant's apartments. This account shall
						  also be charged with the cost of ranges purchased during the development period
						  in excess of the current requirements and to be used for future replacement
						  where a tenants' range becomes inoperative. Any range purchased for use of the
						  community center shall be charged to account 1460.9, Management Equipment. Also
						  include in this account any costs incurred for storage and insurance on ranges
						  for the period prior to their installation in the apartments.
1460.7 Refrigerators
The account shall be charged with the cost of
						  refrigerators purchased by the local agency for the tenants' apartments. This
						  account shall also be charged with the cost of refrigerators purchased during
						  the development period in excess of the current requirements and to be used for
						  future replacement where a tenant's refrigerator becomes inoperative. Any
						  refrigerator purchased for use of the community center shall be charged to
						  account 1460.9, Management Equipment. Also included in this account any costs
						  incurred for storage and insurance on refrigerators for the period prior to
						  their installation in the apartments.
1460.8 Elevators
This account shall be charged with the cost of
						  furnishing and erecting the elevators by the elevator contractor. The total
						  should agree with the amount entered in the column headed, "Value of Work
						  Completed" on the Schedule of Contracts Awards, Exhibit 26 of Appendix
						  S-11.
1460.9 Management Equipment
This account shall be charged with the original cost of
						  nonexpendable equipment purchased during the development period and with the
						  original cost on nonexpendable equipment purchased after substantial completion
						  from development funds. As a basis for determining which items are
						  nonexpendable, all items which cost $25 or more each shall be charged to this
						  account. Items of management equipment which cost less than $25 shall be
						  charged to account 1410.8 during construction, to account 1470.3 (4490) during
						  initial occupancy and to account 4490 after substantial completion. Some
						  examples of the type of management equipment to be charged to this account are
						  as follows:
(1)
Automotive equipment.
Trucks,
						  jeeps, automobiles, tractors, etc.
(2)
Operating service equipment.
Garbage and trash cans, floor waxing machines, etc.
(3)
Maintenance and repair equipment.
Lawn mowers, hand tools, ladders, joiners, threaders, snowplows, painting
						  machines, spray or caulking guns, compressors, garden hose, power tools,
						  etc.
(4)
Community space equipment.
Swings,
						  basketball stops, infirmary tables, work benches, vises, refrigerator and
						  ranges, etc.
(5)
Fire and air raid equipment.
Fire
						  hose, extinguishers, uniforms, etc.
1460.10 Management Supplies
This account shall be charged with the cost of the
						  initial stock of supplies for the project's stockroom during the initial
						  occupancy period. This account shall also be charged with any initial supplies
						  that are received at the project after substantial completion and charged to
						  Development Fund. A physical inventory shall be maintained of these supplies in
						  accordance with Subpart 1642-7.
1460.11 Temporary Heat
This account shall be charged, with the costs of
						  heating the buildings (fuel and labor) by the contractor prior to the
						  acceptance of the buildings by the local agency.
1460.12 Future Painting
Under some circumstances, the initial painting of the
						  project may be deferred until after initial occupancy or after substantial
						  completion. In such cases, the estimated cost of the initial painting will be
						  set aside from Development Funds. The cost of such initial painting should be
						  charged to this account (1460.12).
1470 Preoccupancy Charges and
						  Credits
This major group of cost accounts shall include all
						  costs incidental to the initial operation of the project proper, including the
						  direct costs of selecting tenants, preliminary expenses prior to the beginning
						  of the initial operating period, and any net deficit or income during the
						  initial operating period.
1470.1 Tenant Selection Costs
This account shall be charged directly with all
						  salaries of personnel especially employed for tenant selection and with all
						  expenses incidental to tenant selection such as the cost of receiving,
						  processing, and investigating applications up to the end of the initial
						  operating period. Thereafter, this type of expense will be considered a part of
						  the regular operating expenses and charged to the operation of the project
						  proper.
1470.2 Preliminary Expenses
(a) This account shall be charged with all expenses
						  (except tenant selection costs) directly attributable to the initial operation
						  of the project proper or to preparations for the operation of a project, which
						  have been incurred, or are applicable to the
period prior to the
						  beginning of the initial operating period.
Preliminary expenses
						  include, for example, the salaries of the project manager and staff, janitorial
						  and maintenance salaries, project office expense, costs of preparing and
						  printing booklets for the instruction of tenants, etc. Interest on
						  indebtedness, insurance on newly constructed buildings, and taxes shall not be
						  included, nor shall expenses falling within the Direct Costs (1410) group of
						  development cost accounts, unless it is clearly established that such costs
						  would not have been incurred if the project proper were not being operated or
						  being put into operation.
(b) It is anticipated that the period of preliminary
						  operation, during which project operating expenses are chargeable to this
						  account will be relatively short. Hence, the charges will be made directly to
						  this account without the employment, as subaccounts, of the standard
						  classification of project management expense accounts (4000 group) prescribed
						  for use during the initial operating period.
1470.3 Net Deficit or (Income)-Initial Operating
						  Period
(a) This account shall reflect the net deficit or
						  income resulting from the operation of the project during the initial operating
						  period. This account shall operate as a control account, the standard
						  classifications of project management income and expense (3000 and 4000 groups)
						  being maintained as subsidiary accounts to the extent applicable. Separate
						  income and expense analysis ledgers shall be maintained during this period and
						  reports of income and expense on form DH-621 shall be rendered
						  quarterly.
(b) Management expenses during the initial operating
						  period shall include only the actual expenses 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 provisions be made for any
						  reserves or for accrual of subsidies. Expenses falling within the Direct Costs
						  (1410) or Carrying Charges (1420) group of development cost accounts shall not
						  be charged to management expense during the initial operating period unless it
						  is clearly established that such expenses would not have been incurred if the
						  project were not being operated.
(c) No vacancy loss shall be recorded prior to the last
						  day of the month during which 95 per cent of the projects' dwelling units
						  become available for occupancy or the date of substantial completion as
						  determined by the commissioner, whichever is earlier, only the scheduled rents
						  of such dwelling units as have been rented being taken into income. Subsequent
						  thereto, the full scheduled rent shall be charged and vacancy loss shall be
						  recorded.
1480 Other Charges and Credits to Development
						  Costs
This account is established to record charges and
						  credits to development costs for which provision has not been made in other
						  development cost accounts. In general, it will be found that most credits
						  arising during the development period will follow the charge. Thus, amounts
						  received from sales of salvage, or from demolition contractors are credited to
						  account 1440.14, Demolition and Clearing, etc. Charges and credits from the
						  following typical sources shall, however, be made to this account, a
						  subanalysis being maintained:
(1) Gain or loss on disposition of development fund
						  investments, whether sold prior or subsequent to the date of substantial
						  completion.
(2) Gain or loss on settlement of insurance claims
						  applicable to the period prior to the date of substantial completion, except
						  insofar as to the claims relate to offsite management, or to other related
						  programs.
(3) Losses incurred during the development period not
						  covered by insurance as, for example, with respect to property damage caused by
						  water, except insofar as the losses relate to offsite management or to the
						  related programs.
1490 Contingencies and Working
						  Capital
(a) This account is established, for budgetary purposes
						  only, to provide a cushion between estimated development costs, as budgeted,
						  and the maximum amount that the State agrees to lend and the local agency
						  agrees to borrow under the loan contract. The amount to be set up for
						  contingencies shall be approved by the division. This account shall include
						  such amounts as may be included in the State loan for working capital. The
						  definitive amount of loan funds reserved for working capital will not, however,
						  be determined until the project is declared physically completed by the
						  commissioner. See section
						  1646-8.1 for the accounting
						  entries. Until such time as the amount of Working Capital has been certified by
						  the commissioner, this account shall be handled as if the funds were reserved
						  solely for contingencies.
(c) Inasmuch as account 1490 is provided for budgetary
						  purposes only, no account is set up for it in the cost analysis ledger, nor are
						  any overruns or other development costs charged to the account by means of
						  formal accounting entries in the manner that development costs are charged to
						  the other development cost accounts. The application of Contingency Funds to
						  authorized overruns is reflected only on form DH-213, in the manner described
						  above. No request for an advance of Contingency Funds, as such, should
						  therefore be made on any certificate of purposes.
(d) The term
overrun
is also used in
						  connection with the excesses of expenditures over amounts requested in approved
						  certificates of purposes. Such overruns are subject to special rules as to
						  approvals, source of funds, etc. (see Part 1646, Development Period Accounting)
						  and should be distinguished from overruns on budgeted amounts inasmuch as the
						  latter are the only type of overruns for which Contingencies are set up.
INCOME ACCOUNTS-3000 GROUP
3000 Income Control Account
(a) This account shall control all income, operating
						  and nonoperating, and shall be supported by detailed income accounts in the
						  3000 group of accounts. Account 3000, the control account, shall be maintained
						  in the general ledger, and the detailed income accounts shall be maintained in
						  an income analysis ledger. Refer to Part 1642, Basic Instructions, for setting
						  up and operating the control and subsidiary accounts.
(b) Income accounts are arranged under the following
						  general headings:
3110 Dwelling Rent Schedule 3111 Dwelling
						  Vacancy Loss 3390 Non-Dwelling Rental 3510 Sales and Services to Tenants 3590
						  Miscellaneous Project Income 3610 Interest Earned 3800 Subsidies
Breakdowns in addition to those prescribed for the
						  detailed income accounts may be desirable on very large projects or under
						  special circumstances. Such additional breakdowns may be made so long as the
						  information in the form of the prescribed accounts will be available.
3110 Dwelling Rent Schedule
(b) In addition to the amount charged for shelter rent,
						  this account shall be credited with the charges for all utilities supplied by
						  the project, whether included in the gross rent or billed separately, and
						  including excess utility charges.
(c) In charging rents to tenants, there shall be no
						  variation from the established rent schedule adopted by the local agency and
						  approved by the commissioner. The local agency may, however, charge higher than
						  scheduled rents, subject to division approval, in exceptional cases where
						  occupants of dwelling units whose family incomes are in excess of the limits
						  established for eligibility for admission to the project, and continued
						  occupancy therein, under section
						  156 of the
						  Public Housing Law, and who cannot find suitable accommodations outside of the
						  project. Such surcharges shall also be credited to this account.
(d) The local agency, for control, charging and
						  analytical purposes will reflect the basic rent schedule, surcharges and excess
						  utility charges as follows:
3110.1 Basic Rent Schedule 3110.2 Dwelling Rent
						  Surcharges 3110.3 Retroactive Surcharges 3110.4 Excess Utility Charges
(e) For the recording of entries on the books of
						  account, see Part 1642, Basic Instructions.
3111 Dwelling Vacancy Loss
(b) For the recording of the entries on the books of
						  account, see Part 1642, Basic Instructions.
3390 Net Non-Dwelling Rent
This account shall be credited with all rental charges
						  made to lessees of non-dwelling facilities (including charges and surcharges
						  for utilities and equipment, whether included in the rent of billed
						  separately). Vacancy loss shall not be computed for any of the accounts in this
						  group. Non-dwelling facilities include stores, garages, parking spaces,
						  doctor's offices, community facilities, etc. Charges to non-dwelling tenants
						  for goods and services other than those provided as part of the rental charge,
						  as hereinabove defined, shall not be included in this account (see account
						  3510, Sales and Services to Tenants).
3510 Sales and Services to Tenants
(b) This account shall represent the gross charges made
						  to tenants accounts for the goods and services rendered and not the net
						  difference between the amount charged and the cost thereof. Refer to Part 1642,
						  Basic Instructions, for entries to be made in the books of account with respect
						  to sales and services to tenants.
3590 Miscellaneous Project Income
This account shall be credited with all income, both
						  operating and nonoperating which cannot be classified under any other income
						  account. Credits to this account shall include penalties for late payments of
						  rent, fines and penalties for infractions of rules and regulations, lockouts,
						  rental of equipment (other than equipment included under a non-dwelling lease,
						  which is credited to the non-dwelling rental account), commissions and profits
						  from telephone pay-stations, washing machine consessions, vending machines,
						  gain on the disposition of investments, or on the settlement of fire-loss
						  claims, forfeited bid deposits on management contracts, etc. This account shall
						  not include charges for goods and services not provided as part of the rental
						  charge, made directly to tenants' accounts receivable.
3610 Interest Earned
(a) This account shall be credited with the interest
						  earned on Administration Fund Investments, or on Development Fund Investments
						  subsequent to the date of substantial completion, whether such investments are
						  held by the local agency or by the State Comptroller. Interest on investments
						  held by the local agency shall be accrued quarterly as interest is earned, even
						  though the amount earned is applied to increase the face amount of the
						  investment instead of being paid, as is the case for certain issues of United
						  States government bonds, but interest on investments held by the State
						  Comptroller shall be recorded on the cash basis only, whenever the local agency
						  is notified, through the Division of Housing, of the receipt of interest by the
						  Comptroller.
(b) This account shall be charged with the costs of
						  acquisition and disposition of Administration Fund Investments, and shall be
						  charged or credited with the amortization of the premium or discount on such
						  investments, in accordance with the instructions contained in Part 1645,
						  Investments.
(c) Refer to Part 1645, Investments, for the entries to
						  be made in connection with the interest earned, charges on acquisition and
						  disposition, and amortization of premium or discount.
(d) Interest earned on Development Funds earmarked for
						  rehabilitation, or relocation of buildings, shall at all times, be credited to
						  the appropriate development fund cost account. Interest earned on investments
						  of Development Funds earmarked for offsite clearance should be credited to the
						  appropriate development cost account until the date of substantial completion
						  or the date of liquidation of the program, whichever is earlier. After
						  substantial completion, interest earned on off-site investments should be
						  credited to administration. See account 1420.2, Interest Income.
3800 Subsidies
This major group of accounts shall include cash
						  subsidies paid or due from the State or local bodies obligated to pay such
						  subsidies under the terms of the contract for State aid, and taken into income.
						  It also includes a memo account for local subsidies in the form of tax
						  exemption. Separate accounts shall be maintained as follows:
3810 State of New York Cash
						  Subsidy
(a) This account shall be credited with the amount of
						  State subsidies taken into revenue in accordance with the instructions and
						  limitations prescribed in Part 1648, Subsidies.
(b) At the end of each fiscal year during the fiscal
						  years for which State subsidies are receivable, a journal voucher shall be
						  prepared crediting this account for the amount of the State subsidy applicable
						  to the operations for the year, and debiting account 2250. Prepaid State of New
						  York Subsidies, to the extent of the credit balance therein, or if the credit
						  balance has been exhausted, debiting account 1141, Subsidies-State of New York.
						  All subsidies received from the State of New York prior to the end of the
						  fiscal year to which the subsidy is applicable shall first be credited to
						  account 4410, Prepaid State of New York Subsidies. Any balance in account 1141,
						  Subsidies-State of New York, should then be transferred, by journal voucher to
						  the prepaid subsidies account.
(c) Refer to Part 1648 for the computation of State
						  subsidies.
3820 Other Cash Subsidy
(a) This account shall be credited with the amount of
						  local cash subsidies taken into revenue, as computed in Part 1648, Subsidies,
						  and in accordance with the contract for State aid.
(b) At the end of each fiscal year for which local cash
						  subsidies are receivable, a journal voucher shall be prepared crediting this
						  account for the amount of the local cash subsidy applicable to the operations
						  for that fiscal year and debiting account 2260, Other Prepaid Cash Subsidies,
						  to the extent of the credit balance therein, or, if the credit balance has been
						  exhausted, debiting account 1142, Subsidies-Other. Cash subsidies received from
						  local bodies prior to the end of the fiscal year to which the subsidy is
						  applicable shall first be credited to account 2260, Other Prepaid Cash
						  Subsidies. Any balance in account 1142, Subsidies-Other, should then be
						  transferred by journal voucher, to the prepaid subsidies account.
3830 Annual Local Tax Exemption Subsidy
						  (Memo)
This account will reflect the annual value of the
						  exemption from local real estate taxes granted to the project in accordance
						  with the Public Housing Law and the contract for State aid. At the end of each
						  fiscal year, beginning with the fiscal year in which the date of substantial
						  completion falls, a journal voucher should be prepared debiting the
						  Subsidies-Tax Exemption (Cumulative) memo account, kept with the 1140 group of
						  accounts, and crediting this account with the value of the tax exemption
						  subsidy for that year. The Tax Exemption Subsidy (Annual) memo account is then
						  ruled off when the income and expense accounts of the 3000 and 4000 groups are
						  closed out. These memo accounts are provided for record-keeping purposes only,
						  the balance on the Subsidies-Tax Exemption (Cumulative) memo account providing
						  a cumulative record and the entries in the Annual Local Tax Exemption Subsidy
						  (Memo) providing an annual record. The latter entry is not controlled by, and
						  should not be reflected in, account 3000, the Income Control Account, as are
						  the entries to the other accounts in the 3000 group.
EXPENSE ACCOUNTS-4000 GROUP
4000 Expense Control Account
(a) This account shall control all expenses, operating
						  and nonoperating, chargeable to project revenue and shall be supported by the
						  detailed accounts which are defined under the 4000 and 6000 categories. Account
						  4000, the control account, shall be maintained in the general ledger, and the
						  detailed expense accounts shall be maintained in an expense analysis ledger.
						  Refer to Part 1642, Basic Instructions, for setting up and operating the
						  control and subsidiary accounts.
(b) Expense accounts are arranged under the following
						  general headings:
4100 Management 4200 Operating Services 4300
						  Dwelling and Commercial Utilities 4400 Repairs and Maintenance 4700 Other
						  Expenses 4800 Reserve Provisions 6000 Extraordinary Expenses
Breakdowns in addition to those prescribed in the
						  detailed expense accounts described in the following pages may be desirable on
						  very large projects, or under special circumstances. Such additional breakdowns
						  may be made so long as the information in the form of the prescribed accounts
						  is available.
4100 Management
(a) This major group of operating expense accounts
						  shall include all items of expense incidental to carrying out overall
						  direction, control, and other executive functions in connection with the
						  management of the project.
(b) With respect to the allocation of management
						  expenses as between the project proper and related offsite clearance,
						  rehabilitation, and relocation of buildings programs being conducted
						  simultaneously, the same principle shall be followed as for Direct Costs (1410
						  group) during the development period, viz; no allocation or distribution of
						  management expense to the other expense accounts shall be made unless the
						  division so directs, or the division has approved a plan to serve as the basis
						  of such distribution or allocation.
(c) Separate accounts shall be maintained as
						  follows:
4110 Project Office Salaries
This account shall include salaries of all persons
						  engaged in the project office (or other local agency office serving only one
						  project) for performing functions such as general management supervision;
						  tenant selection; renting and leasing; handling tenant complaints and service
						  requests; collections; budgeting and accounting; reporting; personnel
						  administration; requisitioning and purchasing of supplies and materials;
						  stenographic and clerical services; telephone operators; office machine
						  operators. This account does not include salaries (either full-time or
						  applicable pro rata share) of persons and staff engaged in supervision of
						  repairs and maintenance (see account 4401) or of persons engaged in direct or
						  active leadership in health education, and recreation activities (see account
						  4760). It shall, however, include the salaries of personnel, such as the
						  executive secretary, executive director, or project manager performing
						  authorized coordinating, executive, or advisory functions relating to the
						  operation of the project.
4120 Central Office Salaries
This account is to be used only when a central office
						  is established to serve more than one project. Such portions of the salaries of
						  persons engaged at the central office as are directly traceable to the
						  management of the project and approved by the division as properly chargeable
						  to the revenues of the project shall be charged to this account. Such salaries
						  will, in general, be of the same type as project office salaries chargeable to
						  account 4110. The proration of central office salaries to the various projects
						  served shall require the prior approval of the division.
4130 Legal, Fiscal and Other Fees
(d) Where the limited size of the project does not
						  permit the expenditure of funds for a bookkeeper, the cost of outside
						  accounting services as approved by the division, shall be charged to this
						  account.
4140 Project Office Expense
This account shall be charged with all items, other
						  than salaries, in connection with the operation of the project office (or other
						  local agency office serving only one project) for the purpose of carrying out
						  the overall direction, control, and operation of the project, such as: report
						  and accounting forms; stationery and other office supplies; printing;
						  advertising; informational expense; postage; incidental express, freight and
						  drayage not identified with and charged to the same account as the article
						  shipped; communications, including messenger service; tenant investigation
						  reports; armored car service; safe deposit box rentals; rent of office space,
						  if any; travel expense; rent of office machinery, and equipment; towel service,
						  etc. The cost of office furniture, fixtures, and equipment shall not be charged
						  to this account. See accounts 4490 and 6210.
4150 Central Office Expense
This account is to be used only when a central office
						  is established to serve more than one project. Such portions of central office
						  expenses as are directly traceable to the management of the project and are
						  approved by the division as properly chargeable to the revenues of the project
						  shall be charged to this account. Such expenses will, in general, be of the
						  same type as project office expenses chargeable to account 4140. The proration
						  of central office expense to the various projects served shall require the
						  prior approval of the division.
4200 Operating Services
This major group of expense accounts shall include
						  salaries and other expense incurred in performing janitorial, exterminating,
						  watchmen, and refuse removal services. Separate accounts shall be maintained,
						  as follows:
4210 Janitorial
4210.1 Janitorial-Wages
The salaries of employees engaged principally in
						  janitorial functions, such as porters, janitors and caretakers shall be charged
						  to this account. Where employees perform other services which are incidental to
						  their janitorial activities, their entire salaries shall be charged to this
						  account and no distribution shall be made for these incidental duties. See
						  accounts 4402 and 4403 for Repair and Maintenance Salaries.
4210.2 Janitorial-Other
This account shall include the cost of all supplies,
						  material and expendable equipment applicable to washing, cleaning, waxing, and
						  polishing, the cost of uniforms for janitorial personnel, and of cleaning and
						  laundering them. It shall also include the cost of rubbish and garbage
						  collection and incinerator operation in apartments, group dwellings, or in
						  stations to which tenants bring refuse, including the cost of collection of
						  garbage and rubbish from pickup points, its removal from the project site or
						  the operation of central incinerators.
4210.3 Exterminating
This account shall include the cost of all labor,
						  supplies, material, expendable equipment and contract costs in connection with
						  routine disinfecting and extermination of rodents and household insect pests.
						  It shall not include exterminating costs in connection with horticultural pests
						  (see account 4410, Repairs and Maintenance-Grounds) or termites (see account
						  4420, Repairs and Maintenance-Structures) or costs in connection with
						  extermination which are charged to tenants (see account 1695).
4220 Watchmen
4220.1 Watchmen Wages
This account shall be charged with the salaries of
						  watchmen, housing guards and housing officers.
4220.2 Watchmen-Other
This account shall be charged with the uniforms,
						  badges, equipment, and other items of expense for those employees charged to
						  account 4220.1, or the cost of watchmen services rendered by contract.
4300 Dwelling and Commercial
						  Utilities
This major group of expense accounts shall include the
						  cost of all dwelling, non-dwelling, and commercial utility services, whether
						  purchased from utility companies or produced by the project. Utility charges to
						  these accounts include those supplied to dwelling tenants and non-dwelling
						  lessees, whether included in the rental charge or billed separately. The cost
						  of repairs and maintenance of utility systems shall not be included in these
						  accounts. Separate accounts shall be maintained, as follows:
4310 Water
This account shall include the cost of water for all
						  purposes purchased from either private or municipal water plants.
4320 Electricity
This account shall include the cost of electrical
						  energy for all purposes. Where electricity charges to tenants are made on a
						  metered basis, the cost of reading electric meters shall also be charged to
						  this account. The cost of repairs and maintenance of the electrical system
						  shall not be included (see account 4440.2).
4330 Gas
This account shall include the cost of gas for all
						  purposes, except the cost of gas for heating or hot water where gas is the
						  principal means of providing heat or hot water (see account 4340). Where
						  separate meters are not used for the gas chargeable to the latter account, the
						  utility company should be called upon to furnish an estimate of consumption to
						  be used as a basis for the proration of gas costs. Where gas charges to tenants
						  are made on a metered basis, the cost of reading gas meters shall be charged to
						  this account. The cost of repairs and maintenance of the gas system shall not
						  be included (see account 4440.1).
4340 Fuel
This account shall include the cost of coal, fuel oil,
						  purchased steam, gas, and any other fuels for heating of space or hot water,
						  and supplied by the project to tenants as a part of the rent. Do not include
						  the cost of coal, fuel oil, or other fuels purchased by the project and resold
						  to tenants on a reimbursable basis (see account 1695). Where the use of gas is
						  incidental to the provision of heat or hot water (such as the gas consumed in
						  an oil burner pilot light) and is not the principal means of providing the
						  same, no charge for the gas so used shall be made to this account (see account
						  4330, Gas). Do not include the cost of heating supplies (see account 4440.3) or
						  heating labor (see account 4350).
4350 Heating Wages
This account shall be charged with the salaries of
						  housing firemen and stationary engineers. This account shall also be charged
						  with the salary of any other employee where the principal portion of his duties
						  are in connection with the operation of the project's heating system. The cost
						  of labor in connection with repairs and maintenance of the heating system shall
						  not be charged to this account (see account 4402), unless performed by above
						  listed employees.
4400 Repairs and Maintenance
(a) In performing its statutory function of providing
						  decent, safe and sanitary housing for those income groups which would otherwise
						  be unable to afford such housing, a project employs an aggregate of physical
						  assets in the form of structures, site improvements, fixed and movable
						  equipment, etc., to produce revenue, or to provide necessary facilities for the
						  operation of the project, or because of their utility or function. Costs must
						  be incurred to preserve and maintain the revenue-producing capacity of these
						  assets and their utility and function during their useful lives, and to replace
						  these assets at the end of their useful lives. These costs may be classified as
						  follows:
(1)
Maintenance.
This term refers to
						  the measures undertaken to keep an asset in good operating condition over its
						  useful life, as by regular cleaning, oiling, adjusting, inspecting,
						  overhauling, etc., or to maintain a certain standard of appearance, utility, or
						  function, as by painting, renewing or replacing parts, or to prevent an asset
						  from wearing out or breaking down before its time. Behind the idea of
						  maintenance is the thought that an ounce of prevention is worth a pound of
						  cure. Just as the Division of Housing feels that the best materials obtainable
						  should go into the construction of a project, so it feels that local agencies
						  should aggressively pursue policies of full maintenance. The regular type of
						  cleaning done with a mop, broom, scrubbing, brush or dust cloth is not included
						  herein, but represents a special type of maintenance classified as Operating
						  Services-Janitorial (see account 4210).
(2)
Repairs.
This term refers to the
						  measures necessary to put an asset in good operating condition, or restore its
						  utility, function or revenue-producing capacity after a condition has been
						  reached which maintenance has been unable to prevent. Repairs, like
						  maintenance, may involve labor alone, or labor and materials, or the renewal or
						  replacement of parts, but, generally speaking, neither repairs nor maintenance
						  materially add to the value of the asset, or to its utility, function, or
						  revenue-producing capacity or appreciably prolong its life expectancy. They
						  merely serve to keep the asset in an ordinary efficient operating condition and
						  up to a certain standard of appearance, utility or function.
(3)
Renewals.
This term refers to the
						  replacing of parts of an asset by other parts, as contrasted with the
						  replacement of the entire asset. As indicated above, maintenance and repairs
						  may include renewals. Sometimes the renewals may be so extensive, however, that
						  they constitute an arresting of deterioration or restoration of depreciation,
						  thereby prolonging the life of the asset beyond its normal span. Consideration
						  has been given this factor in arriving at replacement reserve fund
						  requirements.
(4)
Replacements.
This term refers to
						  the replacing of an entire asset by another asset, as contrasted with the
						  replacing of parts of that asset. The latter operation has been above defined
						  as a "renewal". A simple illustration is a refrigerator. Replacing a motor
						  would be a renewal, replacing the entire refrigerator would be a replacement.
						  As the asset becomes more complex, however, it becomes more difficult to
						  distinguish between a renewal and a replacement. For example, the replacing of
						  a steam boiler may be a renewal or replacement depending on whether the boiler
						  is considered by itself or as part of the heating system. For the purposes of
						  classifying expenditures in this system of accounts, however the distinction is
						  not too important. When an asset has reached the end of its useful life, or
						  when neither maintenance nor repairs have been able to keep the asset in
						  efficient operating condition, or up to a certain standard of appearance,
						  utility, or function, or when the item has lost or suffered serious impairment
						  of its utility, function, or revenue-producing capacity through wear, damage,
						  obsolescence, or lack of proper maintenance and repair, it should be replaced.
						  The useful life of any asset installed or used in a project depends on the care
						  with which it has been maintained and repaired. If maintenance and repairs are
						  neglected, early replacement of the item neglected with [
sic
]
						  be necessary. It is evident that replacement costs are dependent on the
						  adequacy and degree of maintenance and repairs. Deferred maintenance may be in
						  the long run, shortsighted economy. Generally speaking, the division will
						  insist that policies of full maintenance be followed.
(b) Expenditures for maintenance, repairs, renewals,
						  and replacements, (hereinafter referred to as MRR&R expenditures) are
						  classified either as charges to current revenues, in which case they are
						  charged to the 4400 group of expense accounts, or as replacements in which case
						  they are charged to account 2510, Reserve for Replacements. The classification
						  of the charges shall be made in accordance with the following procedure:
(1) A detailed description and cost estimate of all
						  replacements planned for the budget year will be incorporated in each annual
						  operating budget submitted to the division for review and approval.
(2) In the event that the need for an unanticipated
						  replacement occurs, the local agency shall request division approval of a
						  corresponding amendment in the operating budget.
(3) MRR&R expenditures for those items which are
						  specifically provided for in the approved annual operating budget, shall be
						  charged direct to account 2510, Reserve for Replacements, as described in Part
						  1647, Operating Period Accounting. All other MRR&R expenditures not so
						  provided for shall be charged to the 4400 group of expense accounts.
(c) Charges to the 4400 group of accounts shall include
						  labor, supplies, material, expendable equipment, contract costs, and such fixed
						  or movable equipment as [do] not constitute charges to the Reserve for
						  Replacements, account 2510, or account 6210, Operating Improvements. Many
						  construction contracts, such as roofing, refrigerators, ranges, contain
						  guarantee provisions as to performance, as do many types of maintenance
						  contracts. Where such contracts are in force, items of MRR&R expense
						  incurred by a project, as by failure of the guarantor to perform, or otherwise,
						  shall be held in suspense in account 1690, Sundry Suspense and Clearance, until
						  liquidated under the guarantee provisions of the contract.
4401 Maintenance Supervision
						  Salaries
This account shall be charged with the salaries and
						  wages of personnel engaged at the project in the supervision of operating
						  services, utilities, or repair and maintenance activities, as for example the
						  superintendent and assistant superintendent titles. It shall also include the
						  salaries of project office personnel (clerks, typists and stenographers) who
						  devote the major portion of their time to the superintendent's office. Do not
						  include any part of the salaries of the executive secretary, executive
						  director, project manager, or manager-superintendent (see account 4110) or the
						  salaries of personnel employed at the central office in the over-all
						  supervision of operating services, utilities, or repair and maintenance
						  activities (see account 4120).
4402 Project Maintenance Salaries
This account shall be charged with the salaries of
						  employees on the project staff in the following titles: maintenance mechanic,
						  maintenance laborer, groundsman, gardener, laborer and any other employee who
						  devotes the major portion of his time to project repairs and maintenance
						  activities.
4403 Central Maintenance Salaries
This account shall be charged with the salaries of
						  maintenance personnel attached to central office, whose time is prorated among
						  various projects. The charges shall be based upon the time spent at the
						  project. The duties of the maintenance personnel charged to this account are
						  similar to those charged to accounts 4401 and 4402.
4410 Grounds
This account shall include all costs of MRR&R for
						  lawns, planted areas, shrubs, trees, etc., fences, wading pools, clothes poles,
						  flag poles, benches and retaining walls, surfaced areas as recreation areas,
						  sidewalks, paths, walkways, parking spaces, individual driveways, cul-de-sacs,
						  streets, roads, public driveways and areas not normally maintained by local
						  government. This account shall also be charged with the costs of snow
						  removal.
4420 Structures
This account shall include all costs of MRR&R,
						  except those costs which are properly chargeable to account 2510, Reserve for
						  Replacements, as described in paragraph (b) under account 4400 above, in
						  connection with all structural work such as: carpentry; wood and asphalt tile
						  floors; roofing and sheet metal; tile work; caulking and waterproofing; lathing
						  and plastering; glazing; hardware; screens, storm doors, stormsash (including
						  seasonal removal and installation); kitchen-cabinets; counter tops; etc. Do not
						  include these costs in connection with grounds (see account 4410).
4430 Painting and Decorating
4430.1 Painting and Decorating
						  Salaries
This account is to be charged with the wages and
						  salaries of painters, painters helpers, plasterers and plasterers
						  helpers.
4430.2 Painting and
						  Decorating-Other
This account shall include all material and contract
						  costs in connection with exterior and interior painting and decorating such as:
						  washing and cleaning painted surfaces preparatory to or in lieu of painting,
						  plaster patching, paper hanging, floor refinishing, curtain rods, painting
						  radiators, exposed plumbing and heating pipes, boiler, generators, yard
						  appurtenances, playground and other equipment. The replacement, washing and
						  repair of window shades shall also be charged to this account.
Refer to Part 1647, Operating Period Accounting, for
						  entries and procedures in connection with the charges to be made to this
						  account and account 4894, Provision for Painting and Decorating.
4440 Mechanical Systems
4440.1 Plumbing and Gas Systems
This account shall include all costs of MRR&R, both
						  inside and outside of structures except those costs properly chargeable to
						  account 2510, Reserve for Replacements, as described in paragraph (b), under
						  account 4400, above, such as piping, supplies, tanks, meters, valves, pumps,
						  motors and controls, plumbing fixtures, etc., in connection with the hot and
						  cold water systems, the gas system, including individual hot water heaters, and
						  the drainage and sewerage systems.
4440.2 Electrical System
This account shall include all costs of MRR&R, both
						  inside and outside of structures, except those costs properly chargeable to
						  account 2510, Reserve for Replacements, as described in paragraph (b), under
						  account 4400, above, in connection with the electrical system, such as:
						  transformers; exterior distribution lines and equipment, interior wiring;
						  meters; fixtures; lamps; fuses; street lighting systems; fire alarm and
						  communications systems; etc.
4440.3 Heating and Ventilating
						  System
This account shall include all costs of MRR&R,
						  except those costs properly chargeable to account 2510, Reserve for
						  Replacements, as described in paragraph (b), under account 4400, above, in
						  connection with central, group, or individual space heating plants and central
						  or group water heating plants such as: boilers, firing equipment; furnaces;
						  fans and pumps; distribution systems, both interior and exterior including
						  mains, valves, pipes, ducts, meters, automatic controls; radiation, including
						  radiators, radiator valves, traps, and grilles, individual or group furnaces,
						  including valves, motors, fans and controls; stoves, when used for space
						  heating; ventilating equipment and controls. Do not include the cost of labor
						  in connection with routine adjustment, oiling, and inspection of heating
						  equipment. See account 4350 for cost of labor performed by heating staff and
						  account 4402 for cost of labor performed by the project maintenance staff. This
						  account shall also be charged for the cost of heating supplies, such as pokers,
						  slice-bars, tube-brushes, shovels, ashcans, ash-can trucks, boiler feed-water
						  treatments, fuel oil solvents, and lubricating oil, wiping rags, etc.
4440.4 Elevators
This account shall include all costs of MRR&R in
						  connection with elevators including maintenance contracts and inspection fees;
						  except those costs properly chargeable to account 2510, Reserve for
						  Replacements, as described in paragraph (b) under account 4400, above.
4480 Ranges and Refrigerators
4480.1 Ranges
This account shall include all costs of MRR&R,
						  except those costs properly chargeable to account 2510, Reserve for
						  Replacements, as described in paragraph (b) under account 4400, above, in
						  connection with coal, oil, gas, or electric stoves or ranges used wholly or in
						  part for cooking. This account shall also include the costs of washing and
						  cleaning ranges when performed in connection with overhauling, renovating and
						  repairing ranges.
4480.2 Refrigerators
This account shall include all costs of MRR&R,
						  except those costs properly chargeable to account 2510, Reserve for
						  Replacements, as described in paragraph (b), under account 4400, above in
						  connection with mechanical refrigerators or ice-boxes. This account shall also
						  include the costs of washing and cleaning of refrigerators when performed in
						  connection with overhauling, renovating, and repairing refrigerators.
4490 Other Equipment
4490.1 Office Furniture and Equipment,
						  Maintenance Equipment and Motor Vehicles
This account shall be charged with the cost of
						  nonexpendable equipment purchased during the operating period from
						  administration funds. All items which cost $25 or more shall be considered
						  nonexpendable and shall be charged to account 4490.1. Items of furniture and
						  equipment which cost less than $25 shall be considered expendable and shall be
						  charged to account 4490.2. Items of furniture and equipment to be used in the
						  community activities program shall be charged to account 4760.2. Some examples
						  of the types of furniture and equipment to be charged to this account are as
						  follows:
(1)
Management furniture and
						  equipment.
Desks, accounting machines, typewriter, adding machines,
						  chairs, filing cabinets, fans, calculating machines, mimeograph machines,
						  dictating machines, safes, etc.
(2)
Operating service equipment.
Garbage and trash cans, floorwaxing machines, etc.
(3)
Maintenance and repair equipment.
Lawnmowers, tools, ladders, joiners, threaders, snowplows, painting machines,
						  spray or caulking guns, or compressors, etc.
(4)
Automotive equipment.
Trucks,
						  jeeps, automobiles, tractors, etc.
(5)
Laundry equipment.
Washing
						  machines, ironers, etc.
(6)
Fire and air raid equipment.
Fire
						  hose, extinguishers, buckets, uniforms.
Any of the above items included in the approved
						  operating budget as costs properly chargeable to account 2510, Reserve for
						  Replacements, or to account 6210, Operating Improvements, are not to be charged
						  to this account. Purchase of an item or group of items charged to this account
						  in the amount of $100 or more shall require prior approval of the division,
						  unless included in the approved operating budget. However, any purchase,
						  although included in the approved budget, in excess of the dollar limitation
						  governing expenditures as stated in the budget approval letter shall require
						  separate prior approval of the division. A physical inventory shall be
						  maintained of all items charged to this account in accordance with Subpart
						  1642-7.
4490.2 Equipment Repairs and
						  Supplies
This account shall include costs for Repairs and
						  Maintenance of all items charged to account 4490.1. It shall also be charged
						  with items of expendable furniture and equipment as defined under account
						  4490.1 above. This account shall also be charged with gasoline, oil and other
						  operating costs of vehicles.
4700 Other Expenses
This major group of expense accounts shall include
						  items of fixed expenses such as insurance, taxes, interest, etc.; community
						  activities; collection losses. Separate accounts shall be maintained, as
						  follows:
4710 Insurance
This account shall include the total amount of premiums
						  applicable to the period for all forms of insurance carried, such as fire and
						  extended coverage, boiler, elevator, automobile, owners and landlord public
						  liability, workmen's compensation, burglary, theft, fidelity and surety bonds,
						  etc. See Part 1642, Basic Instructions, for accounting entries and
						  procedures.
4713 Municipal Service Charges
Where special conditions exist and the contract for
						  State aid expressly permits payment to the municipality or other local body for
						  services and facilities, this account shall be charged with all such payments.
						  These services may consist of fire, police and health protection, schools and
						  educational services and facilities, sewer service, snow removal, collection
						  and disposal of garbage, trash and ashes, maintenance of streets, etc. If the
						  charge is made on an annual basis, one quarter of the annual charge should be
						  charged to this account at the end of each quarter, in accordance with the
						  procedure described under account 4730, Taxes.
4716 Interest on Indebtedness
This account shall be charged with the interest on
						  outstanding indebtedness of the local agency, accrued quarterly in accordance
						  with the instructions in Part 1644 Debt Service. Charges to this account will
						  accrue as of the first day of the month following that in which the initial
						  operating period terminates.
4717 Amortization of Indebtedness
Beginning with the date of substantial completion or
						  the date of issue of bonds by the State, whichever is later, this account shall
						  be charged with the proportionate amount of the scheduled payment on account of
						  the principal amount of the loan outstanding that will be due and payable by
						  the local agency on the next succeeding principal payment date. The charges
						  shall be accrued quarterly, in accordance with Part 1644, Debt Service.
4730 Real Estate Taxes
(a) This account shall include such local real estate,
						  school, and county taxes as the local agency is required to pay in accordance
						  with the Public Housing Law.
(b) At the end of each quarter, until actual payment of
						  the taxes has been made, a journal voucher should be prepared charging this
						  account with one quarter of the total annual taxes and crediting account 2137,
						  Accrued Real Estate Taxes. When the real estate taxes are paid, the entries
						  shall be as follows:
(1) Debit account 2137 for that portion of the tax
						  accrued to the end of the quarter preceding the date of payment.
(2) Debit account 1280, Prepaid Taxes, for the balance
						  of the tax paid.
(3) Credit the appropriate cash account with the
						  payment. Thereafter until the end of the period to which the taxes apply, the
						  quarterly write-off should be debited to account 4730, and credited to account
						  1280.
4740 Pension and Other Funds
This account shall be charged with the following
						  items:
(1) Local agency's contributions to employees
						  retirement and pension systems.
(2) Local agency's contributions for social
						  security.
(3) Local agency's contributions to employee group
						  insurance plans such as Blue Cross, Blue Shield, Health Insurance Plan of New
						  York, Group Life Insurance, etc. Where the amount of charges to this account
						  for each of the above items is substantial, the use of subaccounts is
						  recommended. The amounts withheld from employees' salaries as their
						  contribution to these funds shall not be charged to this account but shall be
						  charged as a part of gross salaries. The charges to this account shall be made
						  by journal voucher at the end of each quarter, the credit being to account
						  2138, Accrued Pension Fund Contributions.
4760 Community Activities
4760.1 Community Activity-Salaries
This account shall be charged with the salaries of a
						  housing community coordinator, recreation director, consultant-social agencies
						  or any other employee authorized to conduct, supervise or participate in a
						  community activities program. No allocation should be made of the salary of an
						  employee, such as a project manager or housing assistant whose community
						  activity duties are incidental to his main duties.
4760.2 Community Activity-Supplies and
						  Equipment
This account shall be charged with the cost of
						  materials, supplies and equipment in connection with health programs, health
						  education, health centers, clinics, infirmaries, etc.; child care and similar
						  welfare services; educational and civic activities; recreation, including
						  playgrounds and community centers. The extent to which the cost of these
						  activities shall, however, be charged to project revenues shall have the prior
						  approval of the Division of Housing. A physical inventory shall be maintained
						  of all items of nonexpendable equipment charged to this account in accordance
						  with Subpart 1642-7. As a basis for determining which items are to be
						  inventoried, all items or a group of items which cost $25 or more shall be
						  considered nonexpendable. Any items of equipment included in the approved
						  operating budget as costs properly chargeable to account 2510, Reserve for
						  Replacements, are not to be charged to this account. Purchase of equipment in
						  the amount of $100 or more shall require prior approval of the division, unless
						  included in the approved operating budget. However, any purchase, although
						  included in the approved budget, in excess of the dollar limitation governing
						  expenditures as stated in the budget approval letter shall require separate
						  prior approval of the division.
4770 Collection Losses
(a) This account shall include the actual amount of
						  past-due accounts receivable which are determined to be uncollectible and
						  written off pursuant to the local agency's procedure as adopted by authority
						  resolution, which resolution has been approved by the division. The division,
						  notwithstanding a write-off pursuant to an approved procedure, will take
						  exception, unless it is satisfied that the local agency has been pursuing an
						  aggressive collection policy and has further exhausted all means of collection
						  to the maximum extent practicable before making the write-off.
(b) Collections made on accounts which have previously
						  been determined to be uncollectible and written off shall be credited to this
						  account. See Part 1642, Basic Instructions, for entries and procedures.
4800 Reserve Provisions
This group of accounts shall include all provisions for
						  reserves permitted by division policy. Separate accounts shall be maintained as
						  follows:
4891 Provision for Replacements
(a) This account shall include the amount set aside
						  from revenue in any period to create a reserve for future costs of replacements
						  and other charges in accordance with division policy.
(b) See Part 1647, Operating Period Accounting, for
						  entries and procedures.
4894 Provision for Painting and
						  Decorating
(a) This account shall include the net amount set aside
						  from revenue in any period to create a reserve for future costs of painting and
						  decorating.
(b) See Part 1647, Operating Period Accounting, for
						  entries and procedures.
4895 Provision for Vacancy and Collection
						  Losses
(a) This account shall include the net amount set aside
						  from revenue in any period to create a reserve for future vacancy and
						  collection losses in accordance with division policy.
(b) See Part 1647, Operating Period Accounting, for
						  entries and procedures.
4899 Provision for Operating
						  Improvements
This account shall include the amount set aside from
						  revenue for operating improvements, where Development Funds are not available.
						  All charges to this account require prior written division approval. See
						  account 2590, Reserve for Operating Improvements, for the credit entries which
						  are contra to the charges to this account.
6000 Extraordinary Expenses
This group of accounts shall include operating items of
						  a nonrecurring nature and all expenses arising from other than normal
						  operations. The accounts in this group shall be controlled by account 4000,
						  Expense Control Account, in the same manner as the normal operating expenses
						  included in the 4000 category of accounts. Separate accounts shall be
						  maintained as follows:
6010 Prior Years Adjustments
This account shall be charged or credited with prior
						  years adjustments amounting to $50 or more each, the disposition of which as a
						  charge or credit to current year's operations has been approved by the
						  division. See Subpart 1647-7 for a definition of Prior Years Adjustments and
						  for a description of the review and disposition procedure. See also account
						  2710 for prior years adjustments held in suspense pending division
						  review.
6100 Miscellaneous Losses
This account shall include all costs in connection with
						  the settlement of claims for personal injury or damage to property such as
						  clothing, luggage, furniture or other personal effects arising out of
						  operations, and for which insurance is not carried by the local agency. This
						  account shall also be charged with losses, such as automobile collision costs,
						  where the authority cannot collect for damage to its own property because of
						  the lack of insurance coverage; losses on the sale of Administration Fund
						  Investments; the difference between the proceeds of the insurance claim and the
						  costs of restoring the damaged property and of making the claim, where the
						  costs are in excess of the amount recovered (see account 1670, Insurance Claims
						  Clearance), etc.
6210 Operating Improvements
(a) This account shall include expenditures from
						  management funds for such improvements, additions, alterations, or betterments
						  to a project made subsequent to the date of substantial completion, as are
						  approved by the commissioner and for which development or reserve funds are not
						  available.
(b) The purpose of the operating improvement account is
						  to provide funds, when development funds are not available, to improve the
						  operating efficiency of the project, or to effect economies in operation, or to
						  increase the revenue, utility, or function of the project, or to pay for items
						  omitted from, or overlooked in, the original design or planning of the project
						  which experience with operation has indicated to be necessary or serve to
						  maintain or increase the revenue, utility, or function, or to cure deficencies
						  in construction caused by conditions during the construction period, such as
						  war-caused deficiencies, or to cure deficiencies arising out of technological
						  improvements, etc.
(c) This account shall also be charged with
						  expenditures from management funds for replacements which constitute
						  betterments and which materially increase the utility or function of an item,
						  but only to the extent of the difference between the cost of the new item and
						  the original cost of the item replaced, such as the replacement of half-screens
						  with full screens. Replacements of a type that have a greater durability or
						  expected life than the item being replaced, but which do not increase the
						  utility or function of the item being replaced, such as replacement of gravel
						  roads with paved roads of the same extent, or tar paper with permanent roofing
						  etc., do not constitute betterments.