Current through Register Vol. 54, No. 45, November 9, 2024
Section 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:(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).