§ 6100.659. Rental of administrative space.
(a) The cost of rental of an administrative space, from a related or unrelated party for a programmatic purpose for an HCBS, is allowable, subject to the following:
(1) The cost of rent may not exceed the rental charge for similar space in that geographical area.
(2) The rental cost under a sale-leaseback transaction, as described in Financial Accounting Standards Board Accounting Standards Codification Section 840-40, as amended, is allowable up to the amount that would have been allowed had the provider continued to own the property.
(b) The allowable cost amount may include an expense for the following:
(2) Real estate taxes as limited by § 6100.660 (relating to occupancy expenses for administrative buildings).
(c) The provider shall only include expenses related to the space for the provision of the HCBS.
(d) A rental cost under a lease which is required to be treated as a capital lease under the Financial Accounting Standards Board Accounting Standards Codification Section 840-10-25-1, as amended, is allowable up to the amount that would have been allowed had the provider purchased the property on the date the lease agreement was executed.
(e) An unallowable cost includes the following:
(2) Management fee.
(3) A tax not incurred had the provider purchased the space.
This section cited in 55 Pa. Code § 6100.641 (relating to cost-based rate); 55 Pa. Code § 6100.802 (relating to support coordination, targeted support management and base-funding support coordination); and 55 Pa. Code § 6100.803 (relating to organized health care delivery system).
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