PHADA Encourages HAs to Review & Share New Publication
HUD has recently published several notices implementing a new cash management process for the Operating Fund. Cash management will require HAs to institute new and more complicated accounting practices that may have the effect of recapturing operating reserve assets over several years.
In late July, PHADA, NAHRO, CLPHA, and the MTW Collaborative wrote to Principal Deputy Assistant Secretary Benjamin Hobbs and Principal Deputy Chief Financial Officer Irving Dennis to express our concerns and request meetings regarding HUD’s plans. These meetings have occurred, and it is clear that neither the Department nor HAs will be ready to implement the required changes by January 1, 2026, less than 4 months from now. New accounting practices must begin by that date for HAs to report on the status of Operating Fund resources by April 2027, as required by HUD’s notices.
Today, the Associations wrote a second letter to Hobbs and Dennis reiterating concerns with HUD’s plans and timetable, and urging the Department to delay cash management implementation. The letter requesting a delay can be found here.
PHADA has many other reservations and concerns about cash management. The Association has developed a new Cash Management publication that members can use to educate their staff and boards, as well as share with their elected officials. The publication spells out the negative effects associated with the HUD policy. PHADA strongly encourages members to use this publication in communications with Congress.