HUD HCV Guidebook § 7.1

The billing amount will be the full amount of the housing assistance payment for the family, which is
determined in the same manner as for other families in the receiving PHA program, and the administrative fee
amount. The administrative fee amount is determined as described below.
Administrative Fees: The administrative fee calculation changed with publication of the final portability rule.
The initial PHA must reimburse85 the receiving PHA for the lesser of 80% of the initial PHA’s ongoing
administrative fee or 100% of the receiving PHA’s ongoing administrative fee for each program unit under HAP
contract on the day of the month for which the receiving PHA is billing the initial PHA. The example below
illustrates how administrative fees are now calculated. Initial and receiving PHAs continue to have discretion
to negotiate and agree to a different administrative fee amount.
The initial PHA’s column B administrative fee rate (as indicated in previous guidance) and the receiving PHA’s
column B administrative fee rate are used in determining the administrative fee amount owed for a ported
voucher. HUD publishes the administrative fee rates every year. The posted administrative fees are found on
the HUD HCV webpage.
Proration due to insufficient administrative fee funding will apply to the administrative fee amount for which
the receiving PHA may bill the initial PHA. That is, when determining the administrative fee amount, proration
will be applied to both the initial and receiving PHA’s administrative fee rate. Information on administrative fee
proration for portability billing purposes will be provided in the administrative fee rate guidance published by
HUD every year in the following webpage:
http://portal.hud.gov/hudportal/HUD?src=/program_offices/public_indian_housing/programs/hcv.
The administrative fee amounts may be used for the entire calendar year to avoid the need for PHAs to re-
calculate their portable fees each quarter, unless otherwise instructed by HUD.

                                      Administrative Fee Example
Administrative fee proration for the year is 79%. The initial PHA’s column B administrative fee rate is
$60.59 per voucher. The receiving PHA’s column B administrative fee rate is $42.05 per voucher. The
receiving PHA bills the initial PHA for $33.21 [the lesser of: (1) $38.29 ($60.59x.79x.80) or (2) $33.21
($42.05x.79)]. See the table below for a visual representation of this example.
PHA A (initial PHA)                                       Column B Rate x Proration x 0.8
                                                          *admin fee proration in this example is 79%

                                                          $ 60.59 x 0.79 x 0.8 = $38.29

PHA B (receiving PHA)                                     Column B Rate x Proration x 1
                                                          *admin fee proration in this example is 79%

                                                          $ 42.05 x 0.79 x 1 = $33.21

85
     24 CFR § 982.355(e)(3)

Moves and Portability                                                                                   23