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PART I: ADMINISTRATIVE FEE RESERVE [24 CFR 982.155] SARA must maintain an administrative fee reserve for the program to pay program administrative expenses in excess of administrative fees paid by HUD for the funding year. If funds in the administrative fee reserve are not needed to cover SARA administrative expenses, SARA may use these funds for other housing purposes permitted by Federal, State and local law. If SARA has not adequately administered any Section 8 program, HUD may prohibit use of funds in the administrative fee reserve, and may direct SARA (City Council) to use funds in the reserve to improve administration of the program or to reimburse ineligible expenses. HUD also may prohibit use of the funds for certain purposes. HUD requires SARA Board of Commissioners or other authorized officials to establish the maximum amount that maybe charged against the administrative fee reserve without specific approval. Expenditures from the administrative fee reserve will be made in accordance with all applicable Federal requirements. Expenditures will not exceed $25,000 per occurrence without the prior approval of the Housing Authority of the City of Santa Ana (Santa Ana Clty COU11c11). PART II: SETTING PROGRAM STANDARDS AND SCHEDULES 16-II.A. OVERVIEW Although many of the program's requirements are established centrally by HUD, the HCV program's regulations recognize that some flexibility is required to allow the PHA to adapt the program to local conditions. This part discusses how SARA establishes and updates certain schedules and standards that are used to administer the program locally. Details about how these schedules are applied to individual families are provided in other chapters. The schedules and standards discussed here include: • Payment Standards, which dictate the maximum subsidy a family can receive (application of the payment standards is discussed in Chapter 6); and • Utility Allowances, which specify how a family's payment should be adjusted to account for tenant-paid utilities (application of utility allowances is discussed in Chapter 6). Copies of the payment standard and utility allowance schedules are available for review in the SAHA's offices during normal business hours. Families, owners, and members of the public may submit written comments on the schedules discussed in this part, at any time, for consideration during the next revision cycle. SARA will maintain documentation to support its annual review of payment standards and utility allowance schedules. This documentation will be retained for at least 3 years. o~ro2~12 Page 16-2