9 NYCRR 1640-5.1

Section 96 of the Public Housing Law states that no administrative expenses of an authority shall be paid from any State loan or subsidy or from the rental income of any State project. It follows that items of expenses of an authority deemed to be administrative expenses are ineligible to be charged to development costs or operating expenses of a State-aided project. The division will determine which items of expense constitute administrative expense of an authority. In such determination, a direct connection with the planning, construction, or management of a State-aided project will be an important, but not conclusive factor. In the absence of explicit rulings with respect to a given expense, an authority should consult with the division and secure a ruling before incurring that expense.