HUD Multifamily Housing Compliance

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HUD Multifamily Housing Compliance

• What Every Tax Credit Investor, Loan Server, and
  Borrower Needs to Know
• May 10-11, 2007

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• WHAT KINDS OF PROGRAMS ARE WE DISCUSSING?
• Grants To Local Government HOME, CDBG
• Multifamily Mortgage Insurance
• Section 8 Project-based, AAFs, FMRs, OCAFs,
  Budget Based, 50 Percent Incomes
• Vouchers
• HOPE VI
• Public Housing

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• Introductory Regulatory Issues In Non-Procurement
  Government Contracts. You Are In The Real Estate
  Business, But So Much More!
• You Have Extra Civil, Criminal Law Requirements
• False Statements Act
• False Claims Act
• 666 Watch out for Faustian bargains!

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• Administrative Issues
• Flags
• LDP
• Suspension And Debarment -- EPLS

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• Regulatory Requirements
• Audits, Inspections, Reviews
• Tax Credits -- 8823s Follow HUD Handbook 4350.3
  Plus New 8823 Guide

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• 2530 Previous Participation Review
• 24 CFR Part 200 Subpart H
• Plus Memos, Unpublished Lore

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• Key Concepts
• MPRC Process
• Principles
• Properties
• Officers
• GPs
• LPs
• LLCs
• Baseline

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• Paper v. Electronic APPs History Of Delay,
  Problems
• Substantive Changes Along With APPs Federal
  Register Change
• Pending Bill, Recent Memos January Memo, March
  Memo On Investors, H.R. 1675

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• Starting Point For Using APPS
• Quick Tips, Glossary
• Absolution, HUD Absolves You Of Your Sins
  Sets the tone
• REMS And Interpreting With Flags Leads To Field
  Office Confession

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• KEY BUSINESS AGREEMENTS
• Regulatory Agreement Key Documents In FHA
  Loans.
• Read It All But Focus on
• Limits Para 2 deposits
• Para 4 rent schedule
• Para 6-Transfers (TPA), distribution (surplus
  cash, inspection)
• Para 7-Maintenance, Inspection
• Para 9-Management Contract, MOR, Audits
• Para 10-Fair Housing, but that applies in law by
  own force too

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• HAPs Housing Assistance Payments
• Many Of The Same Requirements As Regulatory
  Agreement
• HAP Forms Can Differ Substantially In Different
  Section 8 Programs. Always Check The HAP
• Part II in example paras. 2.4 to 2.6, 2.10, 2.17,
  2.20
• Renewals MAHRA, Section 8 Renewal Guide

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• USE AGREEMENTS
• Vary Widely Seen Only In Some Programs, Such As
• Flexible Subsidy Program
• Property Dispositions
• Non-Profit Prepayments

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• Audits This Is A Regulatory Agreement And
  Increasingly, HAP Requirement (usually)
• 4370.2
• Hot topic Repayment of Advances
• Project v. Owner 4381.5 Common concept
  creating conflict

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• YOUR FHA LOAN IS NONRECOURSE SORT OF
• REACs
• MOR
• Integrity Of Site Records
• Managers Good Samaritan Can Hurt
• Use Agreements

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• CASE STUDIES
• How Enforcement Center Works
• Harvey Case Project v. Owner Expenses
  Penalties May Not Be Worth The Principle!
• David Case Pays To Avoid Controversial Programs
  and Acts (coinsurance and default), Or Be
  Prepared Ahead Of Time
• Livecchi Case Owner Advances And Repayments
  Respect Surplus Cash, Get Approvals and Keep
  Receipts!

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