Late last year HUD issued a Memorandum which allows management agents to charge both “special” and “add-on” management fees to cover the cost of implementing and maintaining a homeless preference. The special fee is $2.50 Per unit per month (PUPM) for up to nine months, capped at $4,500 per property and is intended to cover the costs of staff time associated with establishing a homeless preference, such as establishing a referral process with homeless service providers and amending the Tenant Selection Plan. The add-on fee is $2.00 PUPM (to take effect after the nine months of the special fee), not to exceed $3,600 per project per year. The add-on fee can be collected even if the special fee was not collected. This add-on fee is intended to compensate the management company for the additional work inherent in administering a homeless preference. The HUD guidance gives information on how to apply for these fees and record keeping requirements to justify the fee going forward.