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2012 Annual Owners Compliance Report (AOCR) Training

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2012 Annual Owners Compliance Report (AOCR) Training January 22, 2013 * * * * * * * PART D: Owners Financial Certification ANNUAL OPERATING EXPENSE PAGE (Cont d ... – PowerPoint PPT presentation

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Title: 2012 Annual Owners Compliance Report (AOCR) Training


1
2012 Annual Owners Compliance Report (AOCR)
Training
  • January 22, 2013

2
Contact Information
  • Physical Address
  • TDHCA
  • 221 East 11th Street
  • Austin, Texas 78701
  • Mailing Address
  • TDHCA
  • PO Box 13941
  • Austin, Texas 78711-3941
  • Website www.tdhca.state.tx.us
  • Phone Number (512)475-2906 or 1(800)643-8201
    (toll free in Texas only)
  • Patricia Murphy
  • Chief of Compliance
  • A complete staff listing including direct phone
    numbers and email address is provided

3
Annual Owners Compliance Report
  • Reports available in the Compliance Monitoring
    and Tracking System (CMTS) first week in January
  • All Parts now due April 30th for reporting data
    for January 1st December 31st of the previous
    year
  • Rule moved from 10TAC60.105 to 10TAC10.603

4
Annual Owners Compliance Report (Contd)
  • Reports available in the Compliance Monitoring
    and Tracking System (CMTS) first week in January
  • All Parts now due April 30th for reporting data
    for January 1st December 31st of the previous
    year
  • Rule moved from 10TAC60.105 to 10TAC10.603

5
Annual Owners Compliance Report (Contd)
  • This reporting year is for 2012
  • All answers and information should be limited to
    activity that occurred January 1, 2012 to
    December 31, 2012

6
Why do we have to complete this report?
  • All rental program regulations require owners to
    annual certify compliance
  • For HTC program, see Treasury Regulation 1.42-5
  • Chapter 2306 of the Texas Government Code
    requires TDHCA to report information to the
    legislature and Governors office
  • REA uses data to underwrite new applications
    received by TDHCA
  • Asset Management uses the information to
    determine which properties are at risk and need
    additional oversight

7
Overview
  • All properties are required to submit the reports
  • The first report is due the 2nd year following
    the award
  • i.e. property awarded HTCs in July of 2011.
    First report due 4/30/2013
  • Training will cover how to complete reports for
    properties that have not yet started leasing

8
Getting Started
  • Must have a user ID and password to access system
    and reports
  • Forms available on website
  • http//www.tdhca.state.tx.us/
  • Must be signed by General Partner
  • Electronic Compliance Reporting Filing Agreement
  • Owners Designation of Administrator of Accounts

9
Getting Started (Contd)
  • Forms available on the website

10
Getting Started (Contd)
  • This is the same place you access CMTS to login

11
Getting Started (Contd)
  • Owners must request a user ID and password no
    later than 9/1 of the year following the award.
  • i.e. property awarded HTCs in July of 2011. The
    CMTS Filing Agreement Owners Designation of
    Administrator of Accounts forms must be submitted
    to the Department no later than 9/1/2012.
  • This helps in being prepared to submit the AOCR
    due 4/30/2013 timely
  • Required in 10TAC10.603(a)

12
How to Access Reports
  • 2 types of usernames are issued
  • A username for the administration
  • Starts with adm
  • This is the only username that can be used to
    access all parts of the ACOR
  • A username for the property manager
  • Starts with mgr
  • Can only update Part B Unit Status Report (USR)

13
How to Access the Reports (Contd)
  • When you log in as the adm, this is what you see
  • Will list here all of the properties associated
    with the adm username

14
How to Access the Reports (Contd)
  • To access the parts of the AOCR

15
Basics
  • Use mouse or tab keys to navigate the system
  • Do not use back button
  • Do not have to complete reports in their entirety
    in one sitting just make sure you Save as you go
  • Select the submit button to submit the report.
  • If there is still a link for the report, the
    report has not been submitted.

16
Part A
  • Compliance Questions

17
Part A Compliance Questions
  • To access the Compliance Questions, click Start
    New Report

18
Part A Compliance Questions
  • The reporting year for this report is 2012. Be
    sure to limit your responses to activities that
    occurred January 1, 2012 to December 31, 2012

19
Part A Compliance Questions
  • YES If you choose YES, once you SAVE, it will
    direct you to the next screen to complete the
    Questionnaire
  • NO If you choose NO, you will need to provide
    details explaining why the property was not
    occupied (ie. 2011 allocation of Housing Tax
    Credits and construction is not complete) If
    your property was not occupied, the report ends
    here!

20
Part A Compliance Questions
  • Some answers will require you to include an
    explanation
  • Thing to include
  • Unit number affected
  • Dates of noncompliance
  • If the noncompliance has already been corrected
  • Was the noncompliance identified by TDHCA as part
    of an Onsite Monitoring Review or UPCS Inspection
  • The more detail provided, the less likely we will
    have to contact you for additional information to
    resolve an issue

21
Part A Compliance Questions
  • 1. During this reporting period, have any
    buildings been placed in service for the first
    time?
  • YES
  • For new construction, if Certificates of
    Occupancy (COs) were received in 2012
  • For Acquisition/Rehabs, if the Rehab was placed
    in service 2012
  • NO
  • If all the buildings in the project were already
    placed in service before 1/1/2012

22
Part A Compliance Questions
  • 2. During this reporting period, have the
    occupancy requirements in the Land Use
    Restriction Agreement/Regulatory Agreement (LURA)
    been met?
  • YES
  • If all the occupancy requirements as outlined in
    the LURA have been met
  • NO
  • If there was an issue and, as a result, the
    occupancy requirements were not met you will
    have to give the details.

23
Part A Compliance Questions
  • 3. Has each low income household completed the
    Income Certification and/or the Annual
    Eligibility Certification (AEC) form(s) (Treasury
    Regulation 1.42-5(c)(1)(iii))?
  • YES
  • If the Income Certification was received from
    each low income household at move in
  • When required, the Income Certification
    completed annually
  • For 100 low income HTC projects, the Annual
    Eligibility Certification was completed for
    all low income households before 12/31/2012
  • NO
  • Please give details

24
Part A Compliance Questions
  • 4. For each low income household, has
    documentation been maintained to support the
    Income Certification Form (Treasury Regulation
    1.42-5(c)(1)(iii))?
  • YES
  • If you properly income qualified every low
    income household at move in and annually when
    required
  • NO
  • If a program unit was leased to a household that
    did not qualify
  • If a program unit was leased to a household and
    there was not appropriate documentation to
    support that the household was eligible
  • Please give details

25
Part A Compliance Questions
  • 5. During this reporting period, have the rent
    requirements in the LURA been met (Treasury
    Regulation 1.42-5(c)(1)(iv))?
  • YES
  • If rents at all levels required by the LURA
    continuously met
  • NO
  • Please give details

26
Part A Compliance Questions
  • 6. If a low-income unit in the building became
    available during the reporting year, were all
    reasonable attempts made to rent that unit (or
    the next available unit of smaller or comparable
    size) to a low-income tenant before a market rate
    tenant (Treasury Regulation 1.42-5(c)(1)(ix))?
  • YES
  • If the property is marketing the low income
    units
  • Even if no units became available, as long as
    you are marketing, compliance can be demonstrated
  • NO
  • Please give details

27
Part A Compliance Questions
  • 7. Has each unit and/or building been suitable
    for occupancy (ready for move in), taking into
    account local, health and safety codes, or other
    habitability standards (Treasury Regulation
    1.42-5(c)(1)(vi))?
  • YES
  • If all units that have been vacant for more than
    30 days are ready for occupancy (made ready) by
    12/31/2012 (other than units down due to reported
    casualty loss)
  • NO
  • If any units vacant for more that 30 days as of
    12/31/2012 have not been made ready you will
    need to give details

28
Part A Compliance Questions
  • 8. Has the state or local government unit (other
    than TDHCA) responsible for making building code
    inspections issued a report of a violation for
    any unit and/or building (i.e. local code,
    health, safety inspections) (Treasury Regulation
    1.42-5(c)(1)(vi))?
  • YES
  • If any governmental entity (other than TDHCA)
    inspected the property and found any
    deficiencies/violations please give details
  • NO
  • If any governmental entity (other than TDHCA)
    inspected the property and NO deficiencies/violati
    ons
  • If no inspections occurred

29
Part A Compliance Questions
  • 9. Did the development experience a casualty loss
    that has not already been reported to TDHCA?
  • YES
  • If a casualty and/or disaster loss occurred
    during 2012, and it was NOT reported to TDHCA
    please give details
  • NO
  • If casualty and/or disaster loss occurred in
    2012 and it has already been reported
  • If no casualty and/or disaster loss occurred in
    2012

30
Part A Compliance Questions
  • 10. During this reporting period, has there been
    a change in the General Partner or Ownership of
    the development that was not reported to or
    approved by TDHCA?
  • YES
  • If there has been any change to any
    person/entity in the ownership structure and the
    Department was not notified
  • Contact your Asset Manager
  • NO
  • If there was no change

31
Part A Compliance Questions
  • 11. Has the development approved and distributed
    an Affirmative Fair Housing Marketing Plan as
    required in 10TAC10.612(d)?
  • YES
  • If you have an Affirmative Marketing Plan that
    meets that requirements in 10TAC10.612(d)
  • If there are NO vacancies and the waitlist is
    closed, affirmative marketing is not required
  • NO
  • If there is no Affirmative Marketing Plan
  • If there are NO vacancies, the waitlist has not
    been closed and there is no affirmative marketing
    plan
  • Please give details

32
Part A Compliance Questions
  • 12. Are marketing efforts and leasing activities
    conducted in accordance with the Affirmative Fair
    Housing Marketing Plan as required in
    10TAC10.612(d)?
  • YES
  • If you are marketing to Persons with
    Disabilities in accordance with
    10TAC10.612(d)(3)(A)
  • If you are marketing to the groups identified on
    your plan as least likely to apply
  • If you are NOT marketing because there are NO
    vacancies and the waitlist has been closed
  • NO
  • If there is a plan but no marketing efforts have
    been conducted (either the Persons with
    Disabilities or the groups identified as least
    likely to apply)
  • If you are NOT marketing because there are NO
    vacancies and the waitlist has been NOT been
    closed

33
Part A Compliance Questions
  • Questions 13 25 are only for the Housing Tax
    Credit (HTC) and the HTC Exchange programs
  • If you do not have HTC or HTC Exchange funds, you
    are finished with the Questionnaire

34
Part A Compliance Questions
  • 13. Has the development met the minimum set-aside
    requirement of the 20/50 or 40/60 test under
    section 42(g)(1) (Treasury Regulation
    1.42-5(c)(1)(i))?
  • YES
  • As of 12/31/2012, were there enough units in the
    project occupied with households who were income
    qualified and rent restricted to meet the minimum
    set-aside
  • NO
  • If for any project(s) in the development, the
    minimum set-aside was not met on 12/31/2012

35
Part A Compliance Questions
  • 14. During the reporting period was there a
    change in the applicable fraction (low income
    occupancy), as defined in section 42(c)(1)(B) for
    any building in the development (Treasury
    Regulation 1.42-5(c)(1)(ii))?
  • YES
  • If there was an increase or a decrease in the
    applicable fraction as defined in the LURA for
    any building please give details
  • NO
  • If there was no change to the applicable
    fraction of any building

36
Part A Compliance Questions
  • 15. During the reporting period, were all units
    in the development for use by the general public
    (as defined in section 1.42-9) (Treasury
    Regulation 1.42-5(c)(1)(v))?
  • YES
  • If units are leased in a manner consistent with
    the general public use requirements
  • If occupancy restrictions or preferences favor
    tenants
  • with special needs,
  • who are members of a specified group under a
    Federal program or state program or policy that
    supports housing for such a specified group, or
  • who are involved in artistic or literary
    activities
  • NO
  • If units are not leased in a manner consistent
    with the general public use requirements
  • If a residential unit is provided only for a
    member of a social organization or provided by an
    employer for its employees
  • You will need to give details

37
Part A Compliance Questions
  • 16. Did HUD, or an equivalent fair housing agency
    or a federal court find that the development
    violated the Fair Housing Act (Treasury
    Regulation 1.42-5(c)(1)(v))?
  • YES
  • If a finding was cited that the development
    violated the Fair Housing Act please give detail
  • NO
  • If a compliant was filed, but there was no
    finding of a violation
  • If no compliant was filed

38
Part A Compliance Questions
  • 17. For mixed income projects where annual
    recertification's are required, if at
    recertification a household's income increased
    above 140 of the current income limit determined
    by minimum set-aside, was (or will) the next unit
    in the building of comparable or smaller size
    leased to a low income household (Treasury
    Regulation 1.42-5(c)(1)(x))?
  • YES
  • If the rule was followed
  • Post 15
  • NO
  • If there was an over income (OI) household and
    the next unit rented of smaller/comparable size
    was to a market household
  • Even if the issue has since been corrected
  • Please give detail
  • N/A
  • If 100 low-income and annual recertification is
    not required
  • If you are mixed income no households income
    exceeded 140 of the current AMI for the
    households size

39
Part A Compliance Questions
  • 18. During the reporting period, has there been a
    change in eligible basis (Treasury Regulation
    1.42-5(c)(1)(vii))?
  • YES
  • You will need to describe the nature of the
    change (i.e. a common area has become a
    commercial space or a fee is charged for a
    resident facility where the cost was initially
    included in eligible basis)
  • NO
  • NO

40
Part A Compliance Questions
  • 19. Are all resident facilities that were
    included in eligible basis for any building in
    the project (such as swimming pools, other
    recreational facilities, or parking areas, etc.)
    provided on a comparable basis without charge to
    all residents in the buildings? (Treasury
    Regulation 1.42-5(c)(1)(viii))?
  • YES
  • No fees charged for any residential facility
  • If fees are charged, you are sure that the cost
    for that facility was excluded from eligible basis
  • NO
  • A fee is being charged for a resident facility
    for which the cost to construct that facility was
    included in the eligible basis calculation you
    will need to give detail

41
Part A Compliance Questions
  • 20. Are all low income units in the development
    used on a non-transient basis (i.e. initial lease
    contracts require a minimum six month term),
    except for transitional housing for the homeless
    or single-room occupancy units rented on a
    month-by-month basis (Treasury Regulation
    1.42-5(c)(1)(xii))?
  • YES
  • You are doing leases for less than 6 months, but
    only for transitional housing for the homeless or
    SROs
  • All initial lease terms are at least 6 months
  • NO
  • Please give details

42
Part A Compliance Questions
  • 21 22. Department records indicate that this
    question is not applicable to the development.
  • N/A
  • If for 21 and 22, this message appears, it
    means that, based on a reconciliation of
    Department records, the property is not required
    to have Nonprofit and/or HUB hold an ownership
    interest or materially participate

43
Part A Compliance Questions
  • 21. Department records (LURA, Form 8609, etc..)
    show that a Nonprofit is required to maintain an
    ownership interest in the development. Does a
    Nonprofit maintain an ownership interest in the
    development?
  • YES
  • Answer to confirm that the Nonprofit is in good
    standing and maintains an ownership interest
  • Please describe how the Nonprofit materially
    participates
  • NO
  • If the Nonprofit is not in good standing
  • If the Nonprofit does not hold an ownership
    interest
  • If the Nonprofit does not materially participate
  • Please give details

44
Part A Compliance Questions
  • 22. The LURA requires a HUB (Historically
    Underutilized Business) to hold an ownership
    interest in the development. Does a HUB maintain
    an ownership interest in the development?
  • YES
  • Answer to confirm that the HUB is in good
    standing and maintains an ownership interest
  • Please describe how the HUB materially
    participates
  • NO
  • If the HUB is not in good standing
  • If the HUB does not hold an ownership interest
  • If the HUB does not materially participate
  • Please give details

45
Part A Compliance Questions
  • 23. Is this reporting year the first year of the
    development's credit period?
  • YES
  • If 2012 is the first year of the credit period
    for any project that comprises the development
  • NO
  • If 2012 was the 2nd year or later in the credit
    period

46
Part A Compliance Questions
  • 24. Is there a fully executed and recorded LURA
    in effect (Treasury Regulation 1.42-5(c)(1)(xi))?
  • YES
  • If your LURA has been signed by all parties,
    recorded in the countys records and the original
    document has been returned to the Department
  • NO
  • If there is NO LURA
  • If the LURA has not been fully executed
    (including signing, filing and/or returning
    original document)

47
Part A Compliance Questions
  • 25. If the owner has not yet claimed credits and
    no Form 8609 has been issued, does the owner
    intend to treat the buildings as part of a
    multiple building project (Part II, line 8(b))?
  • YES
  • If the intent is to group building(s) into
    project(s), define the projects here
  • NO
  • If the intent is to treat all building(s) as
    separate project(s)
  • 8609 Issued
  • Form 8609 has been issued for all buildings and
    filed with the IRS

48
Part A Contact Information
  • You will need to update all contact fields for
    the Property, Management Company, Syndicator,
    Owner, Nonprofit and/or HUB if applicable

49
Part A Contact Information
  • Make sure to review all contact information for
    the owner, syndicator, management company and
    property
  • Including a valid email address
  • Be sure to update with the contact person you
    want receiving Department correspondence
  • You will not be able to submit these reports
    unless all contact information is completed
  • Only have to update Nonprofit/HUB contact
    information if applicable as defined by
    Department records

50
Part A Contact Information
  • If there is not any contact information currently
    entered for the property, click Start New Report

51
Part A Contact Information
  • If there is existing contact information, to
    review for accuracy and edits as needed, click
    Edit or View Before Submission

52
Part A Contact Information
  • If you need to change existing information, you
    have to Delete then Add
  • To add missing information, click Add

53
Part A Contact Information
  • To Add information
  • 1. Click Add
  • 2. Enter the prompted information and Submit
    Query
  • The Department database will be searched to
    determine if the record already exists

54
Part A Contact Information
  • If the record exists, Assign to the property

55
Part A Contact Information
  • If the record does not already exist, Add an
    Organization to the property

56
Part A Contact Information
  • At minimum, must complete the fields in orange
    SAVE

57
Part A Contact Information
  • Once saved, update remaining information by
    clicking Add to each relevant field

58
Part A Contact Information
  • Be sure to review the contact information for all
    parties and update as needed. The Department
    solely relies on this information and when it is
    incomplete/incorrect, the right people dont get
    the right information!!!

59
Part B
  • Unit Status Report (USR)

60
Part B Unit Status Report
  • This should reflect occupancy as of 12/31/2012
  • If the property is still under construction,
    submit blank
  • Part A no longer requires race/ethnicity
    information to be reported
  • The Department will use the race/information from
    Part B for reporting purposes

61
Part B Unit Status Report
  • To access the Unit Status Report, click Unit
    Status Report from the main login screen

62
Part B Unit Status Report
  • Click on Enter Unit Occupancy to start updating
    the USR

63
Part B Unit Status Report
  • From the list of Unit Numbers, select the unit
    you need to update

64
Part B Unit Status Report
  • To clear the screen to enter a new household s
    information
  • Enter the Move Out Date
  • Then click New Household

65
Part B Unit Status Report
  • To clear the screen to enter a new household s
    information
  • Enter the Move Out Date
  • Then click Mark Vacant

66
Part B Unit Status Report
  • Complete all relevant Household Information

67
Part B Unit Status Report
  • Complete all relevant Household Composition data

68
Part B Unit Status Report
  • Dont forget to SAVE!

69
Part B Unit Status Report
  • To submit the USR, go back to the Unit Selection
    Screen and click Property details

70
Part B Unit Status Report
  • At the Property detail screen, click Submit
    Reports

71
Part B Unit Status Report
  • Choose the report you would like to submit and
    click Submit

72
Part B Unit Status Report
  • Enter the date the occupancy data you have
    entered is through
  • Be sure to click Submit to TDHCA

73
Part C
  • Housing for Persons with Disabilities Report

74
Part C Housing for Persons with Disabilities
Report
  • To access the Housing for Persons with
    Disabilities Report, click Start New Report

75
Part C Housing for Persons with Disabilities
Report
  • YES
  • If you choose YES, once you SAVE, it will direct
    you to the next screen to complete the
    Questionnaire
  • NO
  • If you choose NO, you will need to provide
    details explaining why the property was not
    occupied (ie. 2011 allocation of Housing Tax
    Credits and construction is not complete) If
    your property was not occupied, the report ends
    here!

76
Part C Housing for Persons with Disabilities
Report
  • For all the following questions, be sure to
    answer in number format (7 vs. seven)

77
Part C Housing for Persons with Disabilities
Report
  • 1. Enter the number of units occupied by persons
    60 years old or older.
  • If a unit has any household member 60 or over,
    include them in the count.
  • For Example Mary (35) and Bob (37) live with
    Marys elderly mother Agnes (89). Count this
    household as a unit occupied by a person 60 or
    older even though Agnes is not the head of
    household.

78
Part C Housing for Persons with Disabilities
Report
  • 2. Enter the number of units occupied by person
    with a disability.
  • The answer to this question should reflect, to
    the best of your knowledge, the number of units
    that are occupied by a person with a disability,
    whether or not the property has documentation

79
Part C Housing for Persons with Disabilities
Report
  • 3. Enter the number of units initially
    constructed or subsequently adapted for persons
    who have disabilities or other special needs.
  • Properties built for first occupancy after March
    of 1991 are subject to the design and
    construction standards of the Fair Housing Act.
    All ground floor units must meet some minimum
    accessibility requirements. Do not include these
    Fair Housing units
  • For Example Mary (35) and Bob (37) live with
    Marys elderly mother Agnes (89). Count this
    household as a unit occupied by a person 60 or
    older even though Agnes is not the head of
    household.

80
Part C Housing for Persons with Disabilities
Report
  • 4. Enter the number of those units which are
    occupied by such persons.
  • From the total units entered for question 3, now
    enter the number of these units that are occupied
    by any member of the household with disabilities
    and/or special needs.
  • If none, enter 0

81
Part C Housing for Persons with Disabilities
Report
  • 5. Enter the number of units which were not
    constructed or adapted, but are occupied by
    persons who have a disability or other special
    need.
  • If your property has units leased to disabled
    persons who are not living in a unit constructed
    or adapted for persons with disabilities, enter
    the total number of those units in this field

82
Part C Housing for Persons with Disabilities
Report
  • After completing Questions 1-5, click SAVE
  • You will then be directed to the accessibility
    information for each unit on the property

83
Part 2 Accessibility Screen
84
Part C Housing for Persons with Disabilities
Report
  • For every unit on the property, an accessibility
    option must be selected
  • Not Equipped,
  • Mobility Equipped and / or
  • Vision / Hearing Equipped.
  • Mobility Equipped and Vision / Hearing Equipped
    may be selected for the same unit.
  • If Not Equipped is selected, Mobility and / or
    Vision / Hearing Equipped may not be selected

85
Part C Housing for Persons with Disabilities
Report
  • An Accessibility Description section is available
    for more detailed information to describe the
    accessibility feature(s).
  • Examples of detailed descriptions grab bars in
    master bathroom lowered cabinets in kitchen
    fully accessible smoke detector modified for
    visual impairment needs. Mobility Equipped and
    Vision / Hearing Equipped may be selected for the
    same unit.
  • There will be 20 units displayed on each page.
    You must save after each set of 20 units before
    updating the next set of 20 units.

86
Part D
  • Owners Financial Certification

87
PART D Owners Financial Certification
  • Two goals of this session-
  • How to fill out the Part D correctly? (changes
    in 2012 report)
  • Why is this information important?

88
PART D Owners Financial Certification
  • Under Owners Financial Certification Report
    Part D select start new report

89
PART D Owners Financial Certification
  • YES
  • If you choose YES, once you SAVE, it will direct
    you to the next screen to complete the
    Questionnaire
  • NO
  • If you choose NO, you will need to provide
    details explaining why the property was not
    occupied (ie. 2011 allocation of Housing Tax
    Credits and construction is not complete) If
    your property was not occupied, the report ends
    here!

90
PART D Owners Financial Certification
  • Annual Income

91
PART D Owners Financial Certification
  • RESERVE FOR REPLACEMENT PAGE
  • All properties answer
  • Do not use sign or commas in your answer
    Decimal points ok (I.e. 106504.32 instead of
    106,504.32)
  • Beginning and ending balance are for 2012 data

92
PART D Owners Financial Certification
  • ANNUAL OPERATING EXPENSE PAGE
  • General Administrative Expenses

93
PART D Owners Financial Certification
  • ANNUAL OPERATING EXPENSE PAGE (Contd)
  • Management Fees
  • Payroll, Payroll Tax and Employee Benefits

94
PART D Owners Financial Certification
  • ANNUAL OPERATING EXPENSE PAGE (Contd)
  • Repairs Maintenance

95
PART D Owners Financial Certification
  • ANNUAL OPERATING EXPENSE PAGE (Contd)
  • Utilities Expense
  • Other Operating Expenses

96
PART D Owners Financial Certification
  • ANNUAL OPERATING EXPENSE PAGE (Contd)
  • Other Operating Expenses (Cont)

97
PART D Owners Financial Certification
  • ANNUAL OPERATING EXPENSE PAGE (Contd)
  • Debt Service Payments (include TDHCA loans)

98
PART D Owners Financial Certification
  • ANNUAL OPERATING EXPENSE PAGE (Contd)
  • New section detail- Capitol Improvements
  • Total will calculate and should be consistent
    with information previously entered on form

99
PART D Owners Financial Certification
  • Submit the Report-
  • New statement added to Part D certifying that the
    information is true and correct

100
PART D Owners Financial Certification
  • HELPFUL HINTS
  • Data enter income expense figures without
    commas
  • Income Expense figures should be annual, NOT
    monthly values
  • Always choose to Calculate Totals, Save and
    Return to page to check calculations
  • Check that auto-populated numbers are correct
  • Enter a figure for Annual Debt Service and the
    loan information. If no debt payments are
    required 0 is acceptable along with
    explanation.

101
PART D Owners Financial Certification
  • Why is Part D information important?
  • Sources of Expense Information
  • Local apartment associations
  • Applicants own historical experience in
    property management
  • IREM (Institute of Real Estate Management)
  • TDHCA database includes up to 5 size categories
    in 13 state service regions
  • Updated Annually
  • Available on our web site
  • Used for underwriting new applications and
    reviewing cost certification information
    (estimated operating expenses)

102
PART D Owners Financial Certification
103
PART D Owners Financial Certification
104
PART D Owners Financial Certification
  • Tools
  • 2013 Regional Operating Expense Database (PDF) -
    year-end 2011 data
  • 2013 Statewide Operating Expense Database (PDF) -
    year-end 2011 data
  • HTC Applicable Percentages and Calculation of
    Underwriting Rates to be Used (PDF) or (XLS) -
    updated 2/1/13
  • Real Estate Analysis is providing this data as
    advisory and indicative and solely as a point of
    reference. Factors affecting operating expenses
    (such as development type, size, location and
    age, as well as target population and management
    philosophies) may vary, and the user should
    consider these possible deviations. For that
    reason, under no circumstances should it (or any
    derivative thereof) be used in whole or in part
    for developing an operating expense pro forma for
    any specific project, except in a purely
    theoretical environment for comparative purposes.
  • For more information, please contact a Real
    Estate Analysis staff member.

105
PART D Owners Financial Certification
  • TDHCA Actual Average Operating Expense Statements
    as of Year End 2010

OPERATING EXPENSE PER UNIT PER Sq. Ft. AVERAGE (annual) 135.08 Units AVERAGE (annual) 126,403 Sq. Ft. CONTROLLABLE PER UNIT
General Administrative 353 0.39 47,632 49,222 353
Management 334 0.37 45,056 46,532
Payroll Payroll Tax 1,007 1.10 136,017 139,217 1,007
Repairs Maintenance 516 0.56 69,765 70,779 516
Utilities 457 0.51 61,689 64,820 457
Water, Sewer Trash 583 0.63 78,806 79,865 583
Insurance 500 0.54 67,593 68,528
Property Tax 509 0.54 68,697 68,384
Reserve for Replacement 243 0.27 32,817 33,870
Total Expenses 4,501 4.91 608,072 621,217 2,916
106
PART D Owners Financial Certification
  • Additional Documents to Submit
  • Reserve Account Information Form
  • Rent Roll as of 12/31/2012
  • Annual Operating or Financial Statements for
    2012 showing
  • Replacement reserve account balance
  • Capital improvements
  • Statement from owner if reserve account was used
    for expenses other than necessary repairs, or if
    balance or deposits were not made in compliance
    with TDHCA or lender requirements

107
PART D Owners Financial Certification
  • Additional Documents to Submit (cont)
  • Property Insurance Certificate
  • Reserve Account Bank Statements as of 12/31/2012
  • Tax Statement for 2012 (receipt of payment)
  • Signed certification or statement from 1st Lien
    Lender stating the following
  • Reserve requirements of Lender
  • Monitoring standards of Lender to ensure
    compliance with requirement
  • Statement indicating that the owner has met all
    reserve requirement
  • Electronic copies (Adobe PDF) can be sent to
    CMFinancialReporting_at_tdhca.state.tx.us

108
Asset Management Division
  • Contact information for Asset Management staff
    can be found on our webpage at http//www.tdhca.st
    ate.tx.us/asset-management/contacts.htm

109
Asset Management Division
110
Part E
  • Form 8703

111
Part E Form 8703
  • What is it?
  • Annual Certification of Residential Rental
    Project
  • Only have to complete if you have Tax Exempt
    Bonds through the Department
  • Part I General Information
  • Part II Annual Determinations
  • Part III Issuer and Description of Bonds
  • Part IV Certification

112
Part E Form 8703
  • Due to the Internal Revenue Service (IRS) by
    March 31st after the close of the calendar year
    for which the certification was made
  • Submit a copy of the filed form for the
    proceeding calendar year by April 30th to the
    Department

113
Part E Form 8703
  • Not a report that is entered in CMTS like all
    other parts
  • Submit a copy of the form via email to
  • irsform8703annualreporting_at_tdhca.state.tx.us

114
Part E Form 8703
  • Part I General Information

115
Part E Form 8703
  • Part II Annual Determinations

116
Part E Form 8703
  • Part III Issuer and Description of Bonds

117
Part E Form 8703
  • Part IV Certification

118
Whats Next?
  • Department Follow Up

119
Department Follow Up
  • Have all parts of the report been submitted?

120
Department Follow Up
  • On May 1st, the Department will identify
    properties that have not submitted all parts of
    the report
  • Notice of Noncompliance sent to properties
  • The Notification will identify which part(s)
    has/have not been submitted
  • 30 day corrective action period given to submit
    the missing part(s)
  • Extensions are not available

121
Department Follow Up
  • After the corrective action period, form(s) 8823
    will be sent to IRS reporting all HTC properties
    that have not submitted Part A
  • All properties that have not submitted all parts
    of the report are scored in the Departments
    Compliance Status System
  • Uncorrected 10 points
  • Corrected 3 points

122
Department Follow Up
  • A review of the answers in Part A

123
Department Follow Up
  • A report is run comparing anticipated answers to
    the Part A questions to actual answers
  • i.e. The anticipated answer to a question is
    yes and the submitted response is no
  • If this review suggests that noncompliance has
    occurred based on the answer, a Notice of
    Noncompliance will be sent to those owners
    requesting clarification
  • 30 day response period

124
Department Follow Up
  • If the owner does not respond, 8823s are issued
    for HTC properties
  • All non responsive properties are scored in the
    Departments Compliance Status System under the
    finding Owner failed to submit annual
    certification
  • Uncorrected 10 points
  • Corrected 3 points

125
Department Follow Up
  • If the owner responds during the 30 day period
    and clarifies that the question was answered
    incorrectly if reasonable, review closed with no
    further action

126
Department Follow Up
  • If owner responds that the property was out of
    compliance, the file is reviewed to determine if
    the Department was already aware of the issue. If
    so, reviewed closed with no further action
  • If TDHCA was not aware of issue, action taken as
    appropriate
  • Filing Form 8823
  • Scoring in the Departments Compliance Status
    System

127
Who to Contact with Questions
Type of Issue Contact Phone
CMTS James Roper 512.657.5880
Part A, B and/ or C Content2012 Stephanie Naquin Wendy Quackenbush 512.475.2330 512.305.8860
Part D The propertys Asset Manager See assignments
Part E Carolyn Magill 512.475.3969
  • All Department email contacts are in the
    following format
  • firstname.lastname_at_tdhca.state.tx.us

128
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