Guidance on Executive Compensation Reporting Released
HUD recently issued Notice PIH-2019-21 (HA) providing additional information on calendar year (CY) 2018 executive compensation reporting. The Notice specifically instructs PHAs on how to use the HUD-52725 Form that reports executive compensation for CY 2018. The form will be available to PHAs through October 18, 2019. The requirements apply to all PHAs that administer a public housing or Section 8 program, including PHAs that have converted their entire public housing portfolio through RAD that still receive funding sourced from Section 8 or 9 of the US Housing Act of 1937.
The FY 2018 Consolidated Appropriations Act included language (members only) prohibiting PHAs from using any Tenant-Based Voucher, Operating Fund, or Capital Fund dollars to pay any amount of salary above the base rate of pay for level IV of the Executive Schedule, or $164,200 for FY 2017. This restriction included salary as well as bonuses or other incentive pay. This provision affirmed a policy that has been in place since the FY 2015 Consolidated Appropriations Act.
PHAs must report compensation for the top management official, the top financial official, and any other individual who is paid an annual salary above the prevailing salary for level IV of the Executive Schedule. PHAs must submit their CY 2018 executive compensation data to HUD using form HUD-52725. HUD-52725 is a web-based form PHAs submit online through HUD’s Secure Systems portal. If the top management and the top accounting/financial official are the same person, the PHA is to report for that person and the next highest paid employee. If a PHA has neither a top management or top financial person, than the PHA must report compensation for its two highest paid employees. If a PHA has two or fewer employees, they must report for all employees.
HUD has noted in the guidance that any PHA that fails to comply with the PHA executive compensation reporting requirements will be in violation of the PHA’s Annual Contributions Contract (ACC).