Notice on Personal Property and Equipment Requirements Published

On December 14, HUD issued Notice PIH 2022-37. The notice discusses Personal Property requirements under 2 CFR part 200 and identifies Equipment management and disposition obligations. In the case of 2 CFR part 200, “personal property” means property other than real property that may be tangible, having physical existence, or intangible. “Equipment” means tangible personal property having a useful life of more than one year and a per-unit acquisition cost which equals or exceeds the lesser of the capitalization level established by the non-federal entity for financial statement purposes, or $5,000. “Supplies” means all tangible personal property other than those described in the definition of equipment.

The determination of whether an item qualifies as equipment is determined at the time of acquisition. PHAs must maintain property records, complete a physical inventory of the property every two years, have a control system to ensure adequate safeguards to prevent loss, damage, or theft of the property, have adequate maintenance procedures, and procedures to ensure the highest possible return if the PHA is authorized or required to sell the property. For any equipment that the PHA sells that is worth more than $5,000, the PHA must compensate HUD for its interest in the property, either the lesser of 10% of the sale or $500. The PHA is not required to do this if the trade-in or selling of the property is used for replacement equipment.

The notice can be found here.