The proposed rule would better implement Federal financial management requirements within the Operating Fund program and address HUD OIG’s recommendations related to the Central Office Cost Center (COCC). Specifically, this rule would clarify the applicability of 2 CFR part 200 to the Operating Fund grant program, and stipulate financial management requirements for the program. The rule would clarify program income requirements, address the applicability and cadence of reporting for the SF-425, and make other changes to update program financial management, Further, the rule would articulate the eligible uses of funds that PHAs pay to the COCC, the type and amount of fees that a PHA’s COCC are permitted to charge the programs, and HUD’s process for assessing the reasonableness of the fee rates. The rule would create restrictions on the appropriate and prohibited uses of COCC funds. The proposed rule also would establish limits and constraints on section 8 & 9 program (Housing Choice Voucher, Operating Fund and Capital Fund) fees paid to the COCC. Under the proposed rule, section 8 & 9 program fees would be limited in use to the authorized use of these programs, activities that provide or enhance low income housing in the PHA’s community, and other HUD-defined activities. In addition, funds paid into the COCC from section 8 or 9 programs would be fully fungible and PHAs would not be required to track section 8 or 9 funds individually.