RD Announces FY 2027 Management Fee Increase and New Budget Submission Process
Rural Development issued two important updates this month that affect every Mid-Atlantic CAH member's FY 2027 budget cycle. Here's what changed and where to find the official documents.
Management Fees Increase for FY 2027
On August 31, Rural Development published Procedural Notice (PN) 661, announcing the FY 2027 maximum management fees by state. For Mid-Atlantic CAH's states, the FY 2027 fees are:
West Virginia - $86 → $91
Virginia - $88 → $93
South Carolina - $85 → $91
North Carolina - $86 → $90
This is the first fee increase in two years. RD held fees flat for FY 2026, and this year's adjustment is based on HUD's Operating Cost Adjustment Factor (OCAF), applied to each state's current maximum fee.
The updated Attachment 3-F to Handbook 2 (HB-2-3560) reflects the new state-by-state amounts.
Direct links:
- Attachment 3-F, FY 2027 Management Fees by state
Budget Submission Process Updated
On August 21, Rural Development published an update to the process for submitting 2027 Proposed Budgets. The new process closely mirrors the process already in place for Annual Report (audit) submissions, so members who are comfortable with that workflow will find this familiar.
This updated process applies to all 2027 Proposed Budget submissions going forward, so please build it into your submission planning now rather than waiting until your deadline is close.
Direct link:
- 2027 Proposed Budget Submission Requirements Fact Sheet
Questions?
If you run into any issues with either the new management fee amounts or the updated budget submission process, please reach out to the CARH national office