Responsible Property Management
At IHDA, we’re responsible for monitoring the properties we finance. That’s currently about 750 multifamily rental properties that comprise more than 65,000 units across the state. We work with property managers to ensure their properties are in compliance with building safety codes, loan conditions, tenant selection requirements and other state and federal guidelines. Property managers can use the tools and documents found here to help ensure they continue to meet their compliance requirements.
Following up on the 2018 Asset Management Pre-Conference Workshop, here are related presentation materials. For those who were able to join us, we hope you found the event to be both interesting and informative. As mentioned at the event, IHDA is revamping its training offerings for property owners, agents, and partners. More details are forthcoming.
Pre-Conference Workshop Final External Agenda
Asset Management Pre-Conference Workshop Schedule – External Full Agenda
Detailed agenda and run-of-show presentation.
Compliance Essentials Overview
Compliance Essentials for LIHTC, HOME and Trust Fund
Compliance Hot Topics Overview
Topics include Data Management System (DMS), Reserves/Withdrawals/Audits, Marketing/Leasing/Fair Housing and 2018 Goals
Includes an overview of DMS Authority Online, Benefits and Features, Common Errors and Priorities for 2018
Includes studies from Bickerdike Redevelopment Corporation and Elevate Energy-Boulevard Apartments
Listing of Compliance Hot Topics for Interactive Meet-Ups
LIHTC HOME HTF Compliance Essentials
Compliance essentials covering LIHTC, HOME Funds and Housing Trust Fund
Property Management Showcase Overview
Covers Rehabilitation with Tenants in Place, Energy Efficiency and Tenant Portal
Includes the topics, “Why RAD?” “RAD+LIHTC Compliance” and “Lessons from Experience”
Presentation from POAH about Rehab with Tenants in Place
Residential portal presentation deck from The Habitat Company.
Financial Statement
Financial reporting and audit guidelines for mortgagors of multifamily housing developments.
Exhibit A – Single Year Schedule of Financial Performance (Excel)
Required to be submitted with annual financial statements.
Audit – Sample of Owner & Agent Certifications
Must be submitted with the annual financial statement.
Budget
Follow these directions to successfully submit the budget review form.
Withdrawal Request Forms
Reserve Account Withdrawal Form
To be completed if there is a withdrawal on a reserve/escrow account.
These instructions specify documentation that must be submitted with requests for withdrawals from property reserve accounts held by IHDA. All requests and supporting documentation are to be submitted electronically to reserverequest@ihda.org.
When seeking reimbursement for any payments, all developments must submit a W-9 Form (Request for Taxpayer Identification Number and Certification). When requesting that vendors be paid directly, the vendor’s W-9 Form must be submitted with the payment request.
Automated Clearinghouse (ACH) Bank Credit Authorization form. This form allows IHDA to electronically deposit funds into the requestor’s bank account.
Automated Clearinghouse (ACH) Bank Debit Authorization form. This form allows IHDA to charge the requestor’s bank account for their mortgage payment on or after the payment due date.
Withdrawal Request Signature Form (Partnership)
To be completed if there is a change to the authorized signatures on a reserve/escrow account.
Withdrawal Request Signature Form (Limited Liability)
To be completed if there is a change to the authorized signatures on a reserve/escrow account.
Withdrawal Request Signature Form (Corporation)
To be completed if there is a change to the authorized signatures on a reserve/escrow account
Withdrawal Request Signature Form (Cooperative)
To be completed if there is a change to the authorized signatures on a reserve/escrow account.
Insurance
Insurance Requirements for IHDA Project Renewals
The insurance coverage outlined in this this documents represents the minimum requirements for IHDA
developments.
Annual Certifications
To be completed if there is a change of contact and/or address for the on-site manager, owner and/or property management company.
Consolidated Certification From
To be submitted annually to certify that the development is in compliance with the applicable income/rent requirements of the Regulatory Agreement per related funding.
TST-2t Tenant Profile Compliance Report
To be submitted annually and attached to the HOME, CDBG, NSP, 1602, TCAP or Tax Credit program certifications. This is the Annual Tenant Events for all household members residing in properties with the following funding programs (HOME, CDBG, NSP, 1602, TCAP, Tax Credits).
For Section 8 & Mod Rehab only. To be submitted annually to certify that the developments are in compliance with HUD’s 30% income targeting.
For Section 8/236 only.
Low Income Housing Tax Credit/TCAP/1602 Compliance Reference Guide
Compliance manual for Tax Credit, TCAP & 1602 compliance requirement.
To be submitted as a supplement to the mortgage details included with the annual financial statements.
Ownership Structure Certification Sample (Exhibit C)
To certify a development’s ownership structure.
To be submitted when authorizing the person listed in the form to execute documents on behalf of the corporation.
Rider to Apartment Lease – HOME Program (IHDA). Rider to be attached to lease when HOME Program funds.
Rental Schedules/Worksheets
Rental schedule to be used for Section 8 developments only.
Rental schedule to be used for Section 236 developments only.
Operating Cost Adjustment Factors (OCAF) Rent Adjustment Worksheet
To be completed for renewal of Section 8 contract increases by OCAF adjustment.
Utility Allowance Analysis Procedures (Section 8 & 236)
This is a development’s guide on how to submit their annual requirement for utility allowance requests for Section 8 & 236 units.
IHDA Other Rent and Utility Allowance Request Form (Not for Section 8 / 236).
Instructions for Utility Allowance
Instructions on utility allowances
Utility Allowance Summary General
Complete this excel form to determine the utility allowance.
Most Restrictive Rent Worksheet
Complete this chart to show maximum rents at 30%, 40%, 50%, 60% and 80% AMI
Utility Allowance Analysis Procedures – All Other Programs (Except Section 8 & 236)
A guide for property managers on how to submit their annual utility allowance requests for developments funded by programs other than Section 8 & 236.
Special Rent Increase Worksheet
To be completed when a Section 8 development is requesting a special rent increase due to extraordinary increases in taxes, insurance and utilities.
Special Rent Increase Worksheet (multi-page)
To be completed when a Section 8 development is requesting a special rent increase due to extraordinary increases in taxes, insurance and utilities.
Section 8 OCAF Renewal (Mod Rehab Only) Rent Adjustments
To be completed for renewal of Section 8 contract increases by Operating Cost Adjustment Factors (OCAF) adjustment for modification rehabilitation projects only.
Rent Comparability Grid Instructions
Instructions on how to complete the rent comparability grid.
To be completed when conducting a rent comparability study.
Contract Renewal Request Form (OCAF – Section 8 only)
To be completed by developments renewing Section 8 contracts.
Appendix 5: AAF Rent Comparability Study (RCS) Worksheet
This form is the Appendix 5 – Annual Adjustment Factor (AAF) worksheet for the rent comparability study.
Section 8 Rent Increase Worksheet for New Construction and Substantial Rehabilitation
This form is the Appendix 1 – Annual Adjustment Factor (AAF) worksheet for the rent comparability study.
Appendix 3: Sample Format for Owner’s Certification of Compliance with the Requirements of Notice
Sample of Annual Adjustment Factor (AAF) owner’s certification of compliance.
Rental Schedule for All Programs except Section 8 and Section 236 (VVL, VL, L, Mkt)
To be used if the development includes very very low; low; and market rate units.
Rental Schedule for All Programs except Section 8 and Section 236 (VVL, VVL, VL, L, Mkt)
To be used if the development includes very very low; low; and market rate units.
Management Agreement Extension
Management Agreement Extension (No Fee Increase)
Extension on the Management Agreement if there is NO fee increase.
Management Agreement Extension (Fee Increase)
Extension on the Management Agreement if there IS a fee increase.
Tenant Management
Tenant Selection Plan – Other Programs
To be submitted when detailing the criteria for selecting tenants for Other Programs (except Section 8 & 236) developments.
Tenant Selection Plan – Section 8 & 236
To be submitted when detailing the criteria for selecting tenants for Section 8 & 236 developments.
Tenant Selection Plan – Section 8 Moderate Rehabilitation Developments
To be submitted when detailing the criteria for selecting tenants for Section 8 Moderate Rehabilitation developments.
Instructions for Tenant Selection Plan
Instructions for completing the Tenant Selection Plan
Affirmative Fair Housing Marketing Plan (AFHMP)
To be submitted when detailing proposed activities/advance marketing for affirmative fair housing.
Management Plan Requirement Guidelines
An outline of management requirements to verify that the owner/sponsor and the managing agent will consistently implement fair and appropriate housing management practices and comply with applicable program requirements when managing an IHDA-financed development.
This poster is required to be posted at the property. (English Version).
This poster is required to be posted at the property (Spanish Version).
A sample form for the development to use to summarize an applicant’s details for the waiting list.
Acceptable form of Verification Appendix 3
Acceptable forms of verification of income and assets
Low Income Housing Tax Credit/TCAP/1602 Program – Owner’s Certification of Continuing Compliance
Low Income Housing Tax Credit/TCAP/1602 Program Project Information
TST-2 Form (Tenant Profile Compliance Report For All Programs)
To be submitted annually and attached to the HOME, CDBG, NSP, 1602, TCAP or Tax Credit program certifications. This is the Annual Tenant Events for all household members residing in properties with the following funding programs (HOME, CDBG, NSP, 1602, TCAP, Tax Credits). Revised 9/16/16.
TST-3 Tenant Income Certification (TIC) Form
LIHTC Tenant Income Certification Form (TIC). To be completed during certification/recertification of residents. This form is accepted by IHDA, City of Chicago and Cook County.
Low Income Housing Data for Tax Credit Projects (Initial submission only)
Low Income Housing Date Report (for each building)
Certification of Student Eligibility
LIHTC Initial Monitoring Data form
TC Under $5K Asset Certification
Asset Certification Form
A reference guide for compliance with the Low Income Housing Tax Credit (LIHTC) Program.
State Tax Credit Compliance Guide.
TSHT-1 IAHTC Owner’s Certification of Continuing Compliance Form
IAHTC Owner’s Certification of Continuing Compliance. To be completed annually.
TSHT-1A IAHTC Project Information Form
IAHTC Project Information. Complete initially then only if there has been change in the information during the compliance period.
TSHT-3 IAHTC Tenant Income Certification (TIC) Form
Low Income Tenant Income Certification (TIC). To be completed during certification of residents.
TSHT-4 IAHTC Project Data Form
IAHTC Project Data. Initial submission only.
TSHT-4A IAHTC Building Identification Form
IAHTC Building Identification. Initial submission only for each BIN number.
IAHTC Payment and Mailing Instructions
Annual State Tax Credit Compliance Fee Payment and Mailing Instructions Requirements
LIHTC Payment and Mailing Instructions
Annual Section 42 Compliance Fee Payment and Mailing Instructions Requirements
Sample Tax Credit Lease Addendum
The Tax Credit Lease Addendum should be on your letterhead, signed by the resident and Manager and attached to your lease agreement if your current lease agreement does not include Section 42 language as identified in this sample Addendum.
2017 Qualified Contract Guidelines
Terms, conditions and procedures for qualified contract requests. Updated September 2017.
BDS Website Instruction for Owner, Agent and On Site
Annual Section 42 Compliance Fee Payment and Mailing Instructions Requirements. This guide will describe the procedures related to use of the BDS (Confidential Delivery Server) website. This website can be used for any transmission that includes data or information that requires protection.
BDS Agent Registration Guide Only
Annual Section 42 Compliance Fee Payment and Mailing Instructions Requirements. The purpose of this guide will be to describe the process, for managing agents, regarding how to register for the BDS (Confidential Delivery Server) for submission of their tax credit compliance documents.
DMS Authority Online User Manual – for Owners Agents
DMS Authority Online is a web portal available to property Owners and Agents to manage compliance reporting directly into IHDA’s DMS. This manual provides guidance on how to use the DMS Authority Online system.
This listing details IHDA-assisted multifamily rental properties and contacts for persons seeking housing.
Occupancy and Waitlist Reporting
Use this link and follow the instructions to submit Occupancy and Waitlist Data.
VAWA Model Emergency Transfer Plan– PDF Version
This document includes a model plan as well as related guidance.
VAWA Emergency Model Transfer Plan – Word Version
This document includes a model plan as well as related guidance.
This guide lists Federal and State referral sources for persons experiencing domestic violence.
2018 all programs rent and income limits
2017 all programs rent and income limits
2016 all programs rent and income limits.
2015 all programs rent and income limits.
2014 all programs rent and income limits.
2013 all programs rent and income limits.
2012 all programs rent and income limits.
Notice Procedures Under the Federally Assisted Housing Preservation Act
Title 47: Housing and Community Development Chapter II: Illinois Housing Development Authority Part 375 Notice Procedures Under the Federally Assisted Housing Preservation Act.
Notice of Intent to Terminate Subsidy
This form is for the owner to submit a notice of intent to complete prepayment, termination, sell or dispose of the property under the Federally Assisted Housing Preservation Act.
Notices
The Feedback Forms below are to be used only for IHDA Properties. Click here to get a listing of IHDA properties.
Applicant/Tenant Complaint Form
Use this form to file an applicant or tenant complaint on an IHDA-financed property.
Use this form for Statewide Referral Network or Section 811 program developments.
Management Bulletin 480 (11/16/18)
EIV System Matching Delay
Management Bulletin 479 (10/17/18)
TRACS User Certification Requirements
Management Bulletin 478 (9/10/18)
NSP Financial Reporting
Management Bulletin 477 (9/6/18)
HUD – Financial Toolkit
Management Bulletin 476 (7/19/18)
IHDR – Guidebook on Reasonable Accommodations and Modifications
Management Bulletin 475 (7/19/18)
HUD Brochure Update – Resident Rights & Responsibilities
Management Bulletin 474 (6/1/18)
2018 Income Rent Limits – HOME
Management Bulletin 473 (5/1/18)
HAP Voucher Submission Deadlines
Management Bulletin 472 (4/30/18)
DMS Authority Online User Manual
Management Bulletin 471 (4/16/18)
2018 Income/Rent Limits
Management Bulletin 470 (4/5/18)
Owners/Agents of Properties with IHDA Held Reserves
Management Bulletin 469 (10/6/17)
Emergency Housing for Households Displaced by Recent Natural Disasters
Management Bulletin 468 (7/24/17)
Income/Rent Limits for 2017
Management Bulletin 467 (6/7/17)
Violence Against Women Act (VAWA) Emergency Transfer Plan Requirements and Model Documents
Management Bulletin 466 (3/28/17)
Updated Occupancy and Waitlist Reporting Requirements
Management Bulletin 465 (11/30/16)
Insurance Requirements for IHDA Projects – Renewals
Management Bulletin 463 (7/19/16)
2016 Asset Management Training Calendar
Management Bulletin 462 (6/6/16)
2016 Maximum Gross HOME Rent Limits
Management Bulletin 461 (4/28/16)
Income/Rent Limits for 2016
Management Bulletin 460 (2/24/16)
Compliance Requirements for 2016
Management Bulletin 459 (1/15/16)
2016 Interest Rate on Security Deposits
Management Bulletin 458 (10/5/15)
Income/Rent Limits for 2015
Management Bulletin 456 (5/28/15)
Required Submission of Tenant Selection Plans and Affirmative Marketing Plans
Management Bulletin 455 (4/28/15)
New HUD issues to be included In Properties’ Tenant Selection Plans
Management Bulletin 454 (3/27/15)
2015 IHDA Training Calendar.
Management Bulletin 453 (3/11/15)
AMS pure HTF and FAF Inspection – Changes Effective 2015
Management Bulletin 452 (1/23/15)
2015 Section 8 Operating Cost Adjustment Factors
Management Bulletin 451 (1/23/15)
2015 Interest Rate on Security Deposits
Management Bulletin 450 (9/24/14)
40th Percentile and 50th Percentile Fair Market Rents for Fiscal Year 2015
Management Bulletin 449 (9/5/14)
TRACS 202.D Release Implementation Schedule
Management Bulletin 448 (8/5/14)
Social Security Benefit Letters
Management Bulletin 447 (3/7/14)
2014 IHDA Tax Credit Training Calendar for On-site Managers/Managing Agents/Owners of Tax Credit Properties.
Management Bulletin 446 (3/7/14)
2014 IHDA Training Calendar for On-site Managers/Managing Agents/Owners of Section 8 and 236 Financed Developments.
Management Bulletin 445 (3/7/14)
2014 IHDA Training Calendar for On-site Managers/Managing Agents/Owners of HOME, Risk Share, AMBAC, TFB, HTF, HPP, FAF, CDBG, NSP, BIBP, TCAP/1602 and 80/20 Financed Properties.
Management Bulletin 443 (2/5/14)
2014 Interest Rate on Security Deposits.
Management Bulletin 442 (1/13/14)
Income/Rent Limits for 2014.
Management Bulletin 440 (12/9/13)
Insurance Requirements for IHDA Projects – Renewals.
Management Bulletin 439 (11/25/13)
2014 Section 8 Operating Cost Adjustment Factors.
Management Bulletin 438 (11/8/13)
Income/Rent Limits 2013.
Management Bulletin 437 (10/18/13)
40th Percentile and 50th Percentile Fair Market Rents for Fiscal Year 2014.
Management Bulletin 436 (9/19/13)
Change in Utility Allowance Calculation and Sample Size.
Management Bulletin 435 (8/8/13)
Violence Against Women Reauthorization Act of 2013 (VAWA)
Management Bulletin 434 (8/15/13)
2014 Budgets Notification.
Management Bulletin 431 (7/16/13)
Revised EIV Notice from HUD (H 2013-06) issued March 8, 2013.
Management Bulletin 430 (4/3/13)
2013 Trainings in Decatur on Thursday, June 13, 2013.
Management Bulletin 429 (4/3/13)
2013 IHDA Training Calendar.
Management Bulletin 428 (3/12/13)
2013 IHDA Training Calendar.
Management Bulletin 427 (3/12/13)
2013 IHDA Training Calendar.
Management Bulletin 426 (3/1/13)
Rental subsidy availability.
Management Bulletin 425 (1/23/13)
Clarification of HUD requirement for Residual Receipts of New Regulation Section 8 Housing Assistance Payment (HAP) Contracts to Offset Monthly Section 8 Housing Assistance Payments.
Management Bulletin 424 (1/23/13)
2013 Interest Rate on Security Deposits.
Management Bulletin 423 (11/30/12)
2013 Section 8 Operating Cost Adjustment Factors.
Management Bulletin 419 (10/1/12)
Housing persons with Disabilities to provide Supportive Housing.
Management Bulletin 418 (8/16/12)
Implementation of a Universal Tenant Income Certification (TIC) form.
Management Bulletin 417 (8/15/12)
2013 Budgets Notification.
Management Bulletin 416 (8/2/12)
Implementation Dates of Utility Allowance Adjustments.
Management Bulletin 415 (6/11/12)
Income/Rent Limits for 2012. Home Program Rent Schedule Format.
Management Bulletin 414 (4/18/12)
2012 Section 8 Annual Adjustment Factors (AAF)
Management Bulletin 413 (4/18/12)
40th Percentile and 50th Percentile Fair Market Rents (FMR) for Fiscal Year 2012
Management Bulletin 411 (3/5/12)
Revised Compliance Submission Requirement HUD-9834 Addendum B
Management Bulletin 410 (2/24/12)
2012 IHDA Trainings in Champaign, Illinois on June 14, 2012
Management Bulletin 409 (2/24/12)
2012 IHDA Training Calendar (For Section 8 and 236 Financed Properties)
Management Bulletin 408 (2/24/12)
2012 IHDA Training Calendar (For HOME, Risk Share, AMBAC, TFB, HTF, HPP, FAF, Tax Credits and 80/20 Financed Properties)
Management Bulletin 407 (2/24/12)
Policy for Lease Guarantors at Authority Financed/Assisted Developments
Management Bulletin 406 (2/24/12)
2012 Interest Rate on Security Deposits
Management Bulletin 405 (1/17/12)
All Section 8 New Construction and Substantial Rehab On-site Managers and Managing Agents
Management Bulletin 404 (12/20/11)
Income/Rent Limits for 2012
Management Bulletin 403 (12/20/11)
E-Mail addresses for future management bulletins.
2012 Section 8 Operating Cost Adjustment Factors.
2012 Budgets.
Management Bulletin 399 (9/11/11)
EIV Notice from HUD (H 2011-21) issued August 17, 2011.
2010 Income Limit and Maximum Rent Schedules.
Clarification of HUD Utility Allowance and Rent Submission Procedures.
Training for On-site Managers/Managing Agents/Owners of Section 8 and 236 Developments & HOME, Risk Share, AMBAC, TFB, HTF, HPP, FAF, Tax Credit and 80/20 Financed Properties.
Training for On-Site Managers/Managing Agents/Owners of HOME, Risk Share, AMBAC, TFB, HTF, HPP, FAF, Tax Credits and 80/20 Financed Properties.
Training for On-Site Managers/Managing Agents/Owners of Section 8 and 236 Financed Properties.
2011 Interest Rate on Security Deposits
Income/Rent Limits for 2010 NEW Rent Schedule format
Clarification of Units for Sale and Rental Assistance Contracts.
2011 Section 8 Operating Cost Adjustment Factors (OCAF)
Terminating a Landlord Rental Assistance Contract.
Revised Tenant Selection Plan Procedures
New Procedure for Monitoring Residual Receipts Attachment -excel file
40th Percentile and 50th Percentile Fair Market Rents (FMR) for Fiscal Year 2011
2011 Budgets
Rental Assistance Contract revision and instruction.
2010 Section 8 Annual Adjustment Factors (AAF)
2010 Section 8 Operating Cost Adjustment Factors (OCAF)
2010 Interest Rate on Security Deposits
2010 Monthly Operating Reports
Over Income Households after an Interim Recertification.
Household recertification response.
Retention of Tenant Leases and Riders to Lease in Local Administering Agency and Long Term Operating Support Program development files.
2009 Maximum Gross HOME Rent Limits
Income/Rent Limits for 2009 and HERA Limits Use Redefined
Revision to the Rental Housing Support Program Compliance Manual.
2009 Income Limit and Maximum Rent Schedules.
Changes to Unit Inspection Process and Summary Reporting.
2009 Section 8 Annual Adjustment Factors (AAF)
2009 Interest Rate on Security Deposits
New Form for Move-outs – “Vacancy Notification Form”
Introduction of Management Bulletins for the Rental Housing Support Program.
Fair Market Rents (FMR) for Fiscal Year 2009
2009 Section 8 Operating Cost Adjustment Factors (OCAF)
Annual Financial Statements (Audit Report) Submission
Billing of Mortgage Insurance Premium (MIP)
Income/Rent Limits for 2008
Required Forms For the Section 8 Mod-Rehab Program
Updated Section 8 Rent Increase Procedures
A. GENERAL QUESTIONS:
1. How, and where, can I find my IHDA loan number?
This project number can be found on your billing invoice, listed as “Loan Number”. For example: 40-888-01.
2. What should I do if there is a change in the contact person, addresses and phone numbers?
Agent/owner’s must update the Contact Directory Form.
3. Who is my asset manager?
For IHDA-financed developments, your assigned points of contact were included in the recently released Annual Compliance Guide. If you did not receive such a guide, please contact Juanita Vasquez at (312) 836-5352 and she will route you to the appropriate contact.
B. FINANCIAL QUESTIONS:
1. Why do I have to send a mortgage verification form?
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.
2. When are audits and budgets due?
a. Audits – check the Regulatory Agreement for the due date submission.
b. Budgets – due October 1st. IHDA also sends out a letter every August to remind developments when the budgets are due.
c. 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.
3. How do I request an extension for submitting audits and budgets?
Please send an e-mail to fpateam@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.
4. Where do I send my audits and budgets?
Audits and budgets must be electronically submitted to fpateam@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 to you once it’s been received.
5. 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.
6. What constitutes a replacement reserve item?
See below for HUD definition for reserve withdrawals:
Building components generally tend to fall into two categories:
1. 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,
2. 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.
A. Items traditionally contemplated as eligible for draws from this Fund include capital items such as (but not limited to):
- Replacement of refrigerators, ranges, and other major appliances in the dwelling units.
- Extensive replacement of kitchen and bathroom sinks and counter tops bathroom tubs, water closets, and doors (exterior and interior).
- 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. - Major plumbing and sanitary system repairs.
- Replacement or major overhaul of central air conditioning and heating systems, including cooling towers, water chilling units, furnaces, stokers, boilers, and fuel storage tanks.
- Overhaul of elevator systems.
- Major repaving/resurfacing/seal coating (sidewalks, parking lots, and driveways).
- Repainting of the entire building exterior.
- Extensive replacement of siding.
- Extensive replacement of exterior (lawn) sprinkler systems.
- Replacement of or major repairs to a swimming pool.
- 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:
a. Would result in enhancing the mortgage security.
b. Would upgrade the property and place the property in a more favorable competitive position in the rental market.
c. Would be necessary to comply with changes in local, state, or federal laws.
d. Would not inordinately deplete the Reserve Fund, i.e., the improvement must be affordable.
B. Items traditionally contemplated as ineligible for draws from this Fund include maintenance items such as (but not limited to):
- 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.
- Replacement of range burners, bibs, oven elements, controls, valves, wiring, etc.
- Replacement of dwelling unit air conditioning components such as fan motors and window unit compressors.
- Minor repairs to central air conditioning and heating systems such as valve replacements and the cleaning of boiler interiors.
- Minor roof repairs, including minor repairs to gutters and downspouts.
- Minor paving repairs.
- Caulking and sealing.
- Window and screen repairs.
- Purchase of maintenance tools and equipment such as lawn mowers or snow blowers.
- Purchase of minor office equipment.
- Inspection/recharging/replacement of fire extinguishers.
- Other items generally considered to be routine maintenance.
7. 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.
8. 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 Financial Monitoring then Withdrawal Request Forms section. The signatures must be originals and the form should be notarized.
9. Do all reserve/escrow withdrawals need to be original? When do I need original receipts, lien waivers, etc.?
All withdrawal forms are in a letter size format and must have original signatures. Copies of receipts are accepted with lien waivers for capital expenditures of $5,000 or more.
10. 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.
11. How many bids must I submit for every capital improvement request?
Three bids are required for capital improvements totaling $10,000 or more.
12. I have a question about my distribution, who should I contact?
Please contact your Financial Portfolio Analyst or Rolando Dinglasan at (312) 836-5278.
C. PROGRAM ADMINISTRATION QUESTIONS:
1. 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, 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 four independent sessions based on funding sources or allocations and program requirements. The four sessions consist of:
a. State Referral Network/Section 811
b. Other Programs
c. Section 8/Section 236
d. Tax Credit
• Management Bulletins are published annually with scheduled dates. - 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.
2. When are annual compliance certifications due?
The annual compliance certifications are due on March 31, every year.
3. 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.
4. 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, 236 and HOME developments. For all other programs, IHDA will review the agent/owner’s rent schedule for compliance with maximum rent and maximum income limit requirements.
D. TAX CREDIT QUESTIONS:
1. 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.
E. MANAGEMENT AND OCCUPANCY REVIEW/DESK REVIEW QUESTIONS:
1. How do I appeal management and occupancy review/desk review inspections?
Submit a formal letter of appeal and attach any documentation to support that there is an error in the inspection report.
2. 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 ____.”
F. PHYSICAL INSPECTION QUESTIONS:
1. How do I appeal physical inspection findings?
If findings are in question the development should gather information from professional sources such as but not limited to City/Town officials, certified contractors that are currently not in house staff. The inspection supervisor will review all documentation.
2. Will my property will receive physical inspection this year?
Contact physical inspection supervisor Rafael La Luz at (312) 836-5266 or rlaluz@ihda.org
Please use this form when submitting a Special Assets request.
If you have any questions, please contact Steven Gladden at 312-836-5351 or via email at sgladden@ihda.org.
Training Recordings
- VIDEO PASSWORD: To view this video, please use this password: HsaBP2Zw
- WHAT WILL I LEARN: The process and documents for requesting funds from reserve accounts.
- WHO SHOULD ATTEND: Staff that coordinates or handles reserve requests to IHDA or maintains reserve accounts.
- VIDEO PASSWORD: To view this video, please use this password: zQaCpCN2
- WHAT WILL I LEARN: The process and documentation for sending loan payments to IHDA.
- WHO SHOULD ATTEND: Staff that coordinates or handles loan payments to IHDA.
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