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O'7 <br /> B. The notice by BUD to the PHA shall state any <br /> reduction, pursuant to section 2.3.A of the ACC, in <br /> the amount of the annual contributions payable for any <br /> project or for the Program, and shall state any <br /> reduction in the amount of contract authority reserved <br /> by HUD for a project. The notice may specify a <br /> revised unit distribution. HUD notice of reduction or <br /> revision shall constitute an amendment of the ACC. <br /> However, HUD shall not reduce the amount of annual <br /> contributions payable by HUD for any project or for <br /> the Program, and shall not reduce the amount of <br /> contract authority reserved by HUD for a project, <br /> below the amount, as determined by HUD, necessary for <br /> dwelling units under contracts for housing assistance <br /> payments with owners on the date when the PHA recefves <br /> the HUD notice. <br /> 2.4. USE OF PROGRAM RECEIPTS. <br /> A. The PHA shall use Program Receipts to provide decent, <br /> safe and sanitary housing for eligible families in <br /> compliance with the U.S. Housing Act of 1937 and all <br /> HUD requirements. Program Receipts may only be used <br /> to pay Program Expenditures. <br /> B. The PHA shall not make any Program Expenditures except <br /> in accordance with the annual contribution estimate <br /> and supporting data for such estimate as approved by <br /> HUD. <br /> C. The PHA shall maintain an Operating Reserve account <br /> that shall be credited with the amount by which the <br /> total of administrative fees earned and interest <br /> earned on the Operating Reserve exceed PHA <br /> administrative expenses during a Fiscal Year. In <br /> subsequent years, the PHA must use funds in the <br /> Operating Reserve to pay administrative expenses in <br /> excess of Program Receipts. Notwithstanding the <br /> provisions of section 2.4.A, if there remain funds in <br /> the Operating Reserve, the PHA may use such funds for <br /> other housing purposes consistent with State and local <br /> law. However, HUD may prohibit use of funds in the <br /> Operating Reserve for other housing purposes if the <br /> PHA is not adequately administering its Housing <br /> Certificate Program or its Housing Voucher Program or <br /> has failed to comply with any of its obligations under <br /> the ACC. <br /> Page 3 of 9 pages HUD 52520 E (June 1985) <br />