Management agents operating HUD-insured and HUD-assisted properties are paid a management fee for their services. Management fees may be paid only to the person or entity approved by HUD to manage the project. Management agents must cover the costs of supervising and overseeing project operations out of the fee they receive.
Owners determine the actual amount of fee to be paid to the management agent. As provided for in project Regulatory Agreements and rental assistance contracts, for certain projects HUD determines the amount of fee that may reasonably be paid out of project funds.
|The Lower End of the Acceptable Range
The Mean of the Acceptable Range
The Top End of the Acceptable Range
|= $24.80 PUPM*|
= $31.00 PUPM
= $37.20 PUPM
|(* The management fee ranges are expressed in dollar per unit per month.)|
We have updated the management fee ranges for the Region VI Multifamily Hub jurisdiction (Arkansas, Louisiana, New Mexico, and Texas). This process is outlined in HUD Handbook 4381.5, Rev 2. Projects subject to HUD review of management fee yields are identified in HUD Handbook 4381.5, paragraph 3.8.
Data includes fees charged for HUD-insured, unassisted properties, whose last PASS scores were greater than 60 and whose last FASS scores were greater than 70. The surveyed properties' management certification type was "independent", and the management fees were "residential."
The mean (average) fee yield for all properties surveyed was $31.00 PUPM. The highest fee yield shown in the survey was greater than 120 percent of the mean, so the top of the acceptable range was calculated as $31.00 x 1.20 percent or $37.20 PUPM. The lower end of the acceptable range was $24.80 PUPM. No add-ons or special fees are included. This fee range is in effect until December 31, 2013.
For more information on Acceptable Residential Management Fees for subsidized properties, please see HUD Handbook 4381.5 Management Fees or contact the local Multifamily Program Center.