BROADCAST EMAIL – Regulatory Update

Today, Rural Development (RD) published a Procedural Notice (PN) 553 announcing final management fees for Fiscal Year (FY) 2022. The base fee will increase by $2 over the FY 2021 base fee. Management fees will vary from state-to-state because RD bases the increase on HUD’s Operating Cost Adjustment Factor (OCAF) which varies based on location in the country and is applied to each state’s current maximum fee. (View Attachment 3-F, Chapter 3 of HB-2-3560 (page 54-55) for the chart listing each state’s management fee adjustment for FY 2022.)  As you know, after considerable discussion with members in the past, CARH has supported the use of OCAF.

Today’s PN includes allowable add-on fees. See section 3.8 B.2 (page 3-16 of the PN). The add-on fees will be $5.00 per unit per month (PUPM). Of particular interest to many CARH members is the $5.00 add-on fee for properties where there are multiple subsidies. CARH has been raising add-on fees with RD since at least 2014 and last year RD began addressing this industry concern. Please contact the CARH national office at or 703-837-9001 should you have questions or concerns.

For other news and information affecting the affordable rural housing industry, please visit the Newsroom on CARH’s website,