IHDA will request a completed mortgage verification form if the development's audited financial statements fail to include details of current balances, loan terms and monthly payments of every lender involved in the financing of the development.

How do I request an extension for submitting audits, budgets and the monthly operating reports (MORs)?

Please send an e-mail to asset@ihda.org. You must include the loan number, development name, additional time needed and the reason for the request. You will be notified, via email, of whether your extension request is granted or denied.

How do I appeal inspections?

Submit a formal letter of appeal and attach any documentation to support that 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 MORs must be electronically submitted to asset@ihda.org. Please include in your e-mail the loan number, development name and a list of the documents you are submitting. Receipt confirmation of your submission will be sent only if it is requested by the sender.

In regards to the mandatory training:

Who should attend?
Site personnel, property owners, compliance staff, person(s) responsible for the submission of reserve withdrawal requests, MORs, budgets, and rent increases should attend the mandatory compliance trainings conducted by IHDA’s Asset Management Services Department.
How often?
Owners/agents should send all new personnel and other staff to training every three (3) years.
Which training should I attend?
The training programs are provided in two independent sessions 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- financed developments are covered in the second training session.
Is there a limit to how many people I can send to attend?
In order to accommodate as many attendees as possible, no more than six persons from the same company per session will be accepted.

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When are annual compliance certifications due?

The annual compliance certifications are due on March 31, every year.

What constitutes a replacement reserve item?

See below for HUD definition for reserve withdrawals:

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 handicapped/disabled persons.

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 major 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 not only the applicable escrows for a development but also describes 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.

What are my occupancy restrictions?

Please note that the area median income 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 tax credit financing is involved.

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 and defines the terms and regulations in detail.

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When are audits, budgets & MORs due?

Audits – check the Regulatory Agreement for the due date submission.
Budgets – October 1st. IHDA also sends out a letter every August to remind developments when the budgets are due.
MORs – are due the 15th of the following month. For example, January MOR submission is due February 15th.
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. Owners’ agents must be able to provide documentation of the operating deficit in order for the funds to be released by IHDA.

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 Directory Change form to asset@ihda.org or to their asset manager. The Contact Directory Change form can also be found in Frequently Used Forms and Documents of this section’s Info Center, under the Annual Certification section.

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

Complete and submit the appropriate withdrawal request signature form(either Partnership, Limited-Liability, Corporation, or Cooperative). These forms can also be found in Frequently Used Forms and Documents of this section’s Info Center, under the Withdrawal Request Forms section. The signatures must be originals and the form should be notarized.

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 $5,000 or more.

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

IHDA may require an inspection for capital expenditures totaling $10,000 or more. The inspection will be conducted by an IHDA field inspector.

How many bids must I submit for every capital improvement request?

Three bids are required for capital improvements totaling $10,000 or more.

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

IHDA's approval is required for all utility allowance increases. IHDA must also process all rent increases for Section 8 and 236 Program 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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