24 C.F.R. § 92.358
§ 92.358 Consultant activities. (24 CFR Part 92)
Operative Text
No person providing consultant services in an employer-employee type relationship shall receive more than a reasonable rate of compensation for personal services paid with HOME funds. In no event, however, shall such compensation exceed the limits in effect under the provisions of any applicable statute (e.g., annual HUD appropriations acts which have set the limit at the equivalent of the daily rate paid for Level IV of the Executive Schedule, see the Departments of Veterans Affairs and Housing and Urban Development, and Independent Agencies Appropriations Act, 1997, Pub. L. 104-204 (September 26, 1996)). Such services shall be evidenced by written agreements between the parties which detail the responsibilities, standards, and compensation. Consultant services provided under an independent contractor relationship are not subject to the compensation limitation of Level IV of the Executive Schedule.
Under 24 CFR Part 92 § 92.358, when HOME funds are used to pay consultants who work in an employer-employee type relationship, their compensation must stay within a 'reasonable rate' and cannot exceed the ceiling set by applicable statutes—historically pegged to the daily rate for Level IV of the Executive Schedule. All such consulting arrangements must be documented in written agreements that spell out responsibilities, performance standards, and pay. Notably, consultants engaged as true independent contractors are not subject to that same Executive Schedule compensation cap.
Plain English — not legal advice.
Property owners and managers administering HOME-funded programs under 24 CFR Part 92 § 92.358 generally ensure that any consultant hired in an employer-employee capacity is paid no more than the statutory compensation ceiling tied to Level IV of the Executive Schedule. Compliant operators document every such engagement with a written agreement that clearly defines the scope of work, performance standards, and compensation terms before work begins. When engaging consultants as independent contractors rather than in an employer-employee relationship, operators still confirm the arrangement genuinely qualifies as independent contracting, since that classification determines whether the Executive Schedule cap applies.
General guidance for property managers — not legal advice for your specific situation. Consult an attorney for advice on your case.
For tenants living in housing developed or assisted with HOME funds, 24 CFR Part 92 § 92.358 establishes guardrails on how program money is spent on consultants, which can affect the overall integrity and availability of those funds. If a tenant or tenant organization believes HOME funds are being misused through excessive consultant compensation or undocumented agreements, they can raise the concern with their local Participating Jurisdiction (PJ) or HUD field office, which oversees HOME program compliance. Tenant-rights organizations and HUD's community planning and development resources can help explain how § 92.358 oversight mechanisms work and what complaint or reporting channels are available.
General guidance for tenants — not legal advice for your specific situation. Consult a tenant-rights organization or attorney for advice on your case.
Generated September 4, 2026 — auto-generated, not yet human-reviewed. See /transparency for methodology.
Effective Timeline
References Out
No outbound references recorded yet for this provision.
References In
No inbound references recorded yet for this provision.