New York Codes, Rules and Regulations › Title 9 - EXECUTIVE DEPARTMENT › Subtitle S - Division of Housing and Community Renewal › Chapter XI - Miscellaneous Provisions › Part 2658 - Limits On Administrative Expenses And Executive Compensation › Section 2658.4 - Limits on administrative expenses

Current through Register Vol. 46, No. 28, July 10, 2024
(a) Limits on allowable administrative
				  expenses. No less than 75 percent of the covered operating expenses of a
				  covered provider paid for with State funds or State-authorized payments shall
				  be program services expenses rather than administrative expenses. This
				  percentage shall increase by five percent each year until it shall be no less
				  than 85 percent in 2015 and for each year thereafter. In determining whether an
				  expense is a program service expense or an administrative expense, a covered
				  provider may allocate a portion of the expense to each type if such allocation
				  is supported by the nature of the expense. Such allocation may include
				  allocation of portions of an employee's time and compensation to administrative
				  or program services. Commencing on July 1, 2013, the limits on allowable
				  administrative expenses pursuant to this Part shall be effective and applicable
				  to each covered provider on the first day of each provider's respective covered
				  reporting period.
(b)
				  Subcontractors and agents of covered providers. The restriction on allowable
				  administrative expenses in subdivision (a) of this section and the reporting
				  requirements in section
				  2658.7 of this Part shall apply to
				  subcontractors and agents of covered providers if and to the extent that such a
				  subcontractor or agent has received State funds or State-authorized payments
				  from the covered provider to provide program or administrative services during
				  the reporting period and would otherwise meet the definition of a covered
				  provider but for the fact that it has received State funds or State-authorized
				  payments from the covered provider rather than directly from a governmental
				  agency. A covered provider shall incorporate into its agreement with such a
				  subcontractor or agent the terms of these regulations by reference to require
				  and facilitate compliance. Upon request, covered providers shall promptly
				  report to the funding or authorizing agency the identity of such subcontractors
				  and agents, along with any other information requested by that agency or by the
				  office or its designee. A covered provider shall not be held responsible for a
				  subcontractor's or agent's failure to comply with these regulations.
(c) Covered providers receiving State funds
				  or State-authorized payments from county or local government, or from entity
				  contracting on its behalf. The office or its designee, rather than the county
				  or local unit of government or an entity contracting on behalf of such
				  government, shall be responsible for obtaining the necessary reporting from and
				  compliance by such covered providers, and shall issue guidance to affected
				  county and local governments to set forth the procedures by which the office or
				  its designee shall do so.
(d)
				  Covered providers with multiple sources of State funds or State-authorized
				  payments. If a covered provider receives State funds or State-authorized
				  payments from multiple sources, the provider's compliance with the restriction
				  on allowable administrative expenses in subdivision (a) of this section shall
				  be determined based upon the total amount of program services expenses and
				  administrative expenses paid for by such funding received from all of such
				  sources. As set forth in section
				  2658.7 of this Part, the covered
				  provider shall report all of such State funds and State-authorized payments,
				  and the expenses paid for by such funding, in the form and at the time
				  specified by the office or its designee.
(e) Other limits on administrative expenses.
				  If the contract, grant, or other agreement is subject to more stringent limits
				  on administrative expenses, whether through law or contract, such limits shall
				  control and shall not be affected by the less stringent limits imposed by these
				  regulations. However, the definition and interpretation of terms in this Part
				  shall not be affected or limited by the definition or interpretation of terms
				  in other regulations or agreements.