When audited financial statements fail to include every lender's current balance including loan terms and monthly payments, then we ask the developments to submit the mortgage verification form.

How do I request extensions for the submission of audits, budgets and monthly operating report (MORs)?

The development must send an e-mail to asset@ihda.org requesting an extension for the submission of audits, budgets or the monthly operating report. The loan number, development name, additional time needed and the reason for the request must be included in your e-mail. The development will then receive an e-mail with a decision.

How do I appeal inspections?

To appeal inspections, please submit a formal letter of appeal and attach any documentation as proof there is an error in the inspection report.

How do I find out when my next management review is?

The upcoming inspection year will be listed on the annual compliance requirement memo, which is sent out annually in January/February. It will state: “The next inspection for your development will occur in calendar year ____.”

Where do I send my audits, budgets and monthly operating reports (MORs)?

Audits, budgets and monthly operating reports must be submitted electronically to asset@ihda.org. Please include in your e-mail the loan number, development name and the type of document you are submitting. Receipt confirmation of your submission will be sent only if the sender requests it.

In regards to the mandatory training, who should:

Attend:
The attendees of the AMS compliance training include site personnel, owners, compliance staff, person(s) responsible for the submission of reserve withdrawal requests, monthly operating reports, budgets and rent increases.
How often:
Owners/agents should send all new personnel and other staff to training every three years.
Which training to go to:
Two independent sessions are held based on loan and program requirements. Housing Trust Fund, HOME, risk share, tax-exempt 80/20, FAF and Trust Fund developments are addressed in the "other programs" training session. Section 8 and 236 compliance is addressed in the second training session.
What is the maximum number of people?
To accommodate as many attendees as possible, no more than six persons from the same company can attend each session.

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When are annual compliance certifications due?

The annual compliance certifications are due on March 31.

What constitutes a replacement reserve item?

See below for HUD definition listing for replacement reserve items:

Building components generally tend to fall into two categories:

Those items that are usually considered to be capital items and eligible for reimbursement from the reserve fund for replacements to the extent of the availability of money in that account; and,
Those items that are usually considered to be routine maintenance items. As a guideline, repair/replacement expenditures that are generally capitalized may often be eligible for payment from a project's reserve fund, while those expenditures that are expensed are only occasionally eligible for payment from the reserve fund.

NOTE: As items (equipment, etc.) that fall into either of these classifications are obtained for a project, HUD expects that mortgagors will be mindful of energy and environmental considerations and will be sensitive to issues involving persons with disabilities.

Items traditionally contemplated as eligible for draws from this fund include capital items such as (but not limited to):
1. Replacement of refrigerators, ranges, and other major appliances in the dwelling units.
2. Extensive replacement of kitchen and bathroom sinks and counter tops bathroom tubs, water closets and doors (exterior and interior).
3. Major roof repairs, including replacements of gutters, downspouts and related eaves or soffits.
  NOTE: When replacing an entire roofing system, HUD encourages owners to seek energy-efficient roofs and bonded roofs.
4. Major plumbing and sanitary system repairs.
5. Replacement or major overhaul of central air conditioning and heating systems, including cooling towers, water chilling units, furnaces, stokers, boilers and fuel storage tanks.
6. Overhaul of elevator systems.
7. Major repaving/resurfacing/seal coating (sidewalks, parking lots, and driveways).
8. Repainting of the entire building exterior.
9. Extensive replacement of siding.
10. Extensive replacement of exterior (lawn) sprinkler systems.
11. Replacement of or major repairs to a swimming pool.
12. For certain projects, requests for capital improvements or enhancements to the property could be considered. For examples, a personal computer and some associated software could be purchased, or perhaps individual air conditioning units could be added to a project that was not air conditioned when it was built, or perhaps gutters and downspouts could be added where necessary. Some improvements may be eligible if in HUD's opinion such items:
  1. Would result in enhancing the mortgage security.
  2. Would upgrade the property and place the property in a more favorable competitive position in the rental market.
  3. Would be necessary to comply with changes in local, state, or federal laws.
  4. Would not inordinately deplete the reserve fund, i.e., the improvement must be affordable.
Items traditionally contemplated as ineligible for draws from this fund include maintenance items such as (but not limited to):
1. Repainting of interior areas of projects. Note: A separate interior painting reserve for this kind of work may be established by mutual agreement and consent of the concerned parties.
2. Replacement of range burners, bibs, oven elements, controls, valves, wiring, etc.
3. Replacement of dwelling unit air conditioning components such as fan motors and window unit compressors.
4. Minor repairs to central air conditioning and heating systems such as valve replacements and the cleaning of boiler interiors.
5. Minor roof repairs, including minor repairs to gutters and downspouts.
6. Minor paving repairs.
7. Caulking and sealing.
8. Window and screen repairs.
9. Purchase of maintenance tools and equipment such as lawn mowers or snow blowers.
10. Purchase of minor office equipment.
11. Inspection/recharging/replacement of fire extinguishers.
12. Other items generally considered to be routine maintenance.

Where do I find the list of my required escrows?

The required escrows for a development can be found in the regulatory agreement. This agreement describes the applicable escrows for a development, and requirements for compliance, funding and usage. Developments should also review the conditional commitment letter, loan agreement, TCAP/1602 written agreement and mortgage as these documents may also define additional reserves and escrows.

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What are my occupancy restrictions?

Please note that the area median income (AMI) rent restrictions and unit percentage requirements are found in the regulatory and land use restriction agreement if there is an IHDA loan, and the extended use agreement if there are tax credits.

How do I know if my property is a tax credit property?

Tax credit properties can be identified by their assigned tax credit number, which can be found in the development's 8609 form. This form allocates the tax credits to the LIHTC property owners.

Tax credit properties also have an extended use agreement, which outlines the amount of years the property has to be in compliance with this agreement. The agreement also details the terms and regulations.

When are audits, budgets & MORs due?

Audits – check the regulatory agreement for the due date submission.
Budgets – October 1. A letter is also sent out in August every year to remind developments when the budgets are due.
MORs – are due the 15th of the following month (For example, the January MOR submission is due February 15)
You may also find the due dates listed on the annual compliance requirement memo, which is sent out to the developments annually in January/February.

When am I able to use any general operating reserve (GOR)/operating deficit reserve?

Funds held in the general operating, or operating deficit reserve account may be used to fund operating deficits that result when gross income is insufficient to meet regularly scheduled expenses. Owner's agents must be able to provide documentation of the operating deficit for IHDA to release the funds.

I have a question about my distribution, who should I contact?

Please contact your asset manager or Rolando Dinglasan at (312) 836-5278.

What should I do if there is a change in the contact person, addresses and phone numbers?

Agent/owner's must submit a contact change form to asset@ihda.org or to their asset manager.

How do I change the authorized signatures on a reserve/escrow account?

You can download the reserve/escrow signatory form (partnership, limited-liability, corporation, cooperative). The signatures must be originals and the form should be notarized before they are submitted.

Do all reserve/escrow withdrawals need to be original? When do I need original receipts, lien waivers, etc.?

All withdrawal forms are in a legal size format and must have original signatures. Copies of receipts are accepted with lien waivers for capital expenditures of at least $5,000.

What reserve/escrow withdrawals require an inspection prior to payout?

IHDA may require an inspection for capital expenditures that are at least $10,000.

Must I submit three bids for every capital improvement request?

Three bids are required for capital improves that are at least $10,000.

Do I need IHDA's approval for rent and utility allowance increases?

IHDA's approval is required for all utility allowance increases. IHDA must process all rent increases for Section 8 and 236 developments. For all other programs, IHDA will review the agent/owner's rent schedule for compliance with maximum rent and maximum income limit requirements. All developments are required to submit annually a current roll and rent schedule as of March 1.

Who is my asset manager?

Please contact Juanita Vasquez at (312) 836-5352 for the name of the asset manager for your development.

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