New West Region Management Fee Ranges – Effective February 19, 2024

New West Region Management Fee Ranges – Effective February 19, 2024

The Multifamily West Region is pleased to announce an increase in management fee ranges for properties located in its states and territories. The new fee ranges, outlined in a memo signed by Regional Director Matt Naish on February 14, 2024 (attached), result in an increase of 12 to 15 percent to the base management fee depending on the state, with an average increase of 14 percent. This increase ensures that property owners can obtain quality management for their properties, and it enables management companies to meet the needs of tenants, take care of their properties, and meet HUD’s high standards of excellence.

The new fee ranges were calculated by applying the change in the Consumer Price Index from October 2021 to December 2023.

In addition to the base residential fee yield, the Region established two new add-on fees:

  • For participants in HUD’s Better Climate Challenge: Up to $4 per unit per month (PUPM)
  • For properties that implement Violence Against Women Act (VAWA) policies: $2 PUPM

The Region’s memo also addresses policy questions raised by stakeholders, including clarifying how rent increases affect management fees, and noting that it is permissible for add-on fees to cause the fee yield (PUPM) to exceed the top of the acceptable fee range.

The increased management fee ranges and add-on fees are effective February 19, 2024. Note that we will also be updating our Management Fee Schedules webpage with the memo.

Owners and management agents may request the higher residential fee yield or the new add-on fees by submitting a new management certification form (forms HUD-9839-A or -B) to the appropriate e-mail address below. In the Subject line, include the property name, request type (Management Certification), and the Property ID, FHA number, or contract number. You can find these identification numbers here.