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

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Presentation on theme: "2012 Annual Owners Compliance Report (AOCR) Training January 22, 2013."— Presentation transcript:

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

2 Contact Information Physical Address: TDHCA 221 East 11 th 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* 2

3 Annual Owners Compliance Report Reports available in the Compliance Monitoring and Tracking System (CMTS) first week in January All Parts now due April 30 th for reporting data for January 1 st – December 31 st of the previous year Rule moved from 10TAC§60.105 to 10TAC§10.603 3

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 30 th for reporting data for January 1 st – December 31 st of the previous year Rule moved from 10TAC§60.105 to 10TAC§10.603 4

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 5

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 6

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 7

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 8

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

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

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 10TAC§10.603(a) 11

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) 12

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 13

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

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. 15

16 Part A Compliance Questions 16

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

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 18

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! 19

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 20

21 Part A: Compliance Questions 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 21 1. During this reporting period, have any buildings been placed in service for the first time?

22 Part A: Compliance Questions 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. 22 2. During this reporting period, have the occupancy requirements in the Land Use Restriction Agreement/Regulatory Agreement (LURA) been met?

23 Part A: Compliance Questions 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 23 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))?

24 Part A: Compliance Questions 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 24 4. For each low income household, has documentation been maintained to support the Income Certification Form (Treasury Regulation 1.42- 5(c)(1)(iii))?

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

26 Part A: Compliance Questions 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 26 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))?

27 Part A: Compliance Questions 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 27 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))?

28 Part A: Compliance Questions 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/violations If no inspections occurred 28 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))?

29 Part A: Compliance Questions 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 29 9. Did the development experience a casualty loss that has not already been reported to TDHCA?

30 Part A: Compliance Questions 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 30 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?

31 Part A: Compliance Questions YES: If you have an Affirmative Marketing Plan that meets that requirements in 10TAC§10.612(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 31 11. Has the development approved and distributed an Affirmative Fair Housing Marketing Plan as required in 10TAC§10.612(d)?

32 Part A: Compliance Questions YES: If you are marketing to Persons with Disabilities in accordance with 10TAC§10.612(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 32 12. Are marketing efforts and leasing activities conducted in accordance with the Affirmative Fair Housing Marketing Plan as required in 10TAC§10.612(d)?

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 33

34 Part A: Compliance Questions 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 34 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))?

35 Part A: Compliance Questions 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 35 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))?

36 Part A: Compliance Questions YES: If units are leased in a manner consistent with the general public use requirements If occupancy restrictions or preferences favor tenants 1)with special needs, 2)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 3)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 36 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))?

37 Part A: Compliance Questions 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 37 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))?

38 Part A: Compliance Questions 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 38 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))?

39 Part A: Compliance Questions 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 39 18. During the reporting period, has there been a change in eligible basis (Treasury Regulation 1.42-5(c)(1)(vii))?

40 Part A: Compliance Questions 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 40 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))?

41 Part A: Compliance Questions 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 41 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))?

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 42

43 Part A: Compliance Questions 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 43 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?

44 Part A: Compliance Questions 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 44 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?

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

46 Part A: Compliance Questions 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) 46 24. Is there a fully executed and recorded LURA in effect (Treasury Regulation 1.42-5(c)(1)(xi))?

47 Part A: Compliance Questions 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 47 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))?

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 48

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 49

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

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 51

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

53 Part A: Contact Information To Add information: 1. Click Add 2. Enter the prompted information and Submit Query 53 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 54

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

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

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

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!!! 58

59 Part B Unit Status Report (USR) 59

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 60

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

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

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

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 64

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 65

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

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

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

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

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

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

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

73 Part C Housing for Persons with Disabilities Report 73

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

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! 75

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

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. 77

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 78

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. 79

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 80

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 81

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 82

83 Part 2: Accessibility Screen 83

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 84

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. 85

86 Part D Owners Financial Certification 86

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? 87

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

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! 89

90 PART D: Owners Financial Certification Annual Income 90

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 91

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

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

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

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

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

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

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 98

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

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. 100

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) 101

102 PART D: Owners Financial Certification 102

103 PART D: Owners Financial Certification 103

104 PART D: Owners Financial Certification 104 Tools 2013 Regional Operating Expense Database (PDF) - year-end 2011 data 2013 Regional Operating Expense Database (PDF) 2013 Statewide Operating Expense Database (PDF) - year-end 2011 data 2013 Statewide Operating Expense Database (PDF) HTC Applicable Percentages and Calculation of Underwriting Rates to be Used (PDF) or (XLS) - updated 2/1/13 HTC Applicable Percentages and Calculation of Underwriting Rates to be Used (PDF)XLS 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. 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 EXPENSEPER 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$2,916 105

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 106

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 1 st 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@tdhca.state.tx.us 107

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

109 Asset Management Division 109

110 Part E Form 8703 110

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 111

112 Part E: Form 8703 Due to the Internal Revenue Service (IRS) by March 31 st 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 30 th to the Department 112

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@tdhca.state.tx.us 113

114 Part E: Form 8703 Part I: General Information 114

115 Part E: Form 8703 Part II: Annual Determinations 115

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

117 Part E: Form 8703 Part IV: Certification 117

118 Whats Next? Department Follow Up 118

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

120 Department Follow Up On May 1 st, 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 120

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 121

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

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 123

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 124

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 125

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 126

127 Who to Contact with Questions Type of IssueContactPhone CMTSJames Roper512.657.5880 Part A, B and/ or C Content2012 Stephanie Naquin Wendy Quackenbush 512.475.2330 512.305.8860 Part DThe propertys Asset Manager See assignments Part ECarolyn Magill512.475.3969 All Department email contacts are in the following format: firstname.lastname@tdhca.state.tx.us 127

128 The End! Thanks for Coming 128


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