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PART I: ADMINISTRATIVE FEE RESERVE [24 CFR 982.155] <br />SAHA must maintain an administrative fee reserve for the program to pay program <br />administrative expenses in excess of administrative fees paid by HUD for the funding year. If <br />funds in the administrative fee reserve are not needed to cover SAHA administrative expenses, <br />SAHA may use these funds for other housing purposes permitted by Federal, State and local law. <br />If SAHA has not adequately administered any Section 8 program, HUD may prohibit use of <br />funds in the administrative fee reserve, and may direct SAHA (City Council) to use funds in the <br />reserve to improve administration of the program or to reimburse ineligible expenses. HUD also <br />may prohibit use of the funds for certain purposes. <br />HUD requires SAHA Board of Commissioners or other authorized officials to establish the <br />maximum amount that may be charged against the administrative fee reserve without specific <br />approval. <br />Expenditures from the administrative fee reserve will be made in accordance with all <br />applicable Federal requirements. Expenditures will not exceed $25,000 per occurrence <br />without the prior approval of the Housing Authority of the City of Santa Ana (Santa Ana <br />City Council). <br />PART II: SETTING PROGRAM STANDARDS AND SCHEDULES <br />16-ILA. OVERVIEW <br />Although many of the program's requirements are established centrally by HUD, the HCV <br />program's regulations recognize that some flexibility is required to allow the PHA to adapt the <br />program to local conditions. This part discusses how SAHA establishes and updates certain <br />schedules and standards that are used to administer the program locally. Details about how these <br />schedules are applied to individual families are provided in other chapters. The schedules and <br />standards discussed here include: <br />~ Payment Standards, which dictate the maximum subsidy a family can receive (application of <br />the payment standards is discussed in Chapter 6); and <br />~ Utility Allowances, which specify how a family's payment should be adjusted to account for <br />tenant-paid utilities (application of utility allowances is discussed in Chapter 6). <br />Copies of the payment standard and utility allowance schedules are available for review <br />in the SAHA's offices during normal business hours. <br />Families, owners, and members of the public may submit written comments on the <br />schedules discussed in this part, at any time, for consideration during the next revision <br />cycle. <br />SAHA will maintain documentation to support its annual review of payment standards <br />and utility allowance schedules. This documentation will be retained for at least 3 years. <br />iii29iio Page 16-2 <br />