HUD Multifamily Housing Compliance What Every Tax Credit Investor, Loan Server, and Borrower Needs to Know May 10-11, 2007

WHAT KINDS OF PROGRAMS ARE WE DISCUSSING? – Grants To Local Government – HOME, CDBG – Multifamily Mortgage Insurance – Section 8 – Project-based, AAFs, FMRs, OCAFs, Budget Based, 50 Percent Incomes – Vouchers – HOPE VI – Public Housing

Introductory Regulatory Issues In Non- Procurement Government Contracts. You Are In The Real Estate Business, But So Much More! – You Have Extra Civil, Criminal Law Requirements False Statements Act False Claims Act 666 – Watch out for Faustian bargains!

Administrative Issues – Flags – LDP – Suspension And Debarment -- EPLS

* Regulatory Requirements – Audits, Inspections, Reviews – Tax Credits s Follow HUD Handbook Plus New 8823 Guide

2530 – Previous Participation Review – 24 CFR Part 200 Subpart H – Plus Memos, Unpublished Lore

– Key Concepts – MPRC Process Principles Properties Officers GPs LPs LLCs Baseline

– Paper v. Electronic – APPs History Of Delay, Problems – Substantive Changes Along With APPs – Federal Register Change – Pending Bill, Recent Memos – January Memo, March Memo On Investors, H.R. 1675

* Starting Point For Using APPS: – Quick Tips, Glossary – Absolution, HUD Absolves You Of Your Sins – Sets the tone – REMS And Interpreting With Flags – Leads To Field Office Confession

KEY BUSINESS AGREEMENTS – Regulatory Agreement – Key Documents In FHA Loans. – Read It All But Focus on: Limits – Para 2 – deposits Para 4 – rent schedule Para 6-Transfers (TPA), distribution (surplus cash, inspection) Para 7-Maintenance, Inspection Para 9-Management Contract, MOR, Audits Para 10-Fair Housing, but that applies in law by own force too

HAPs – Housing Assistance Payments – Many Of The Same Requirements As Regulatory Agreement – HAP Forms Can Differ Substantially In Different Section 8 Programs. Always Check The HAP: Part II in example paras. 2.4 to 2.6, 2.10, 2.17, 2.20 Renewals – MAHRA, Section 8 Renewal Guide

USE AGREEMENTS – Vary Widely – Seen Only In Some Programs, Such As Flexible Subsidy Program Property Dispositions Non-Profit Prepayments

* Audits – This Is A Regulatory Agreement And Increasingly, HAP Requirement (usually) – – Hot topic – Repayment of Advances – Project v. Owner – – Common concept creating conflict

* YOUR FHA LOAN IS NONRECOURSE – SORT OF – REACs – MOR – Integrity Of Site Records – Managers – Good Samaritan Can Hurt – Use Agreements

CASE STUDIES – How Enforcement Center Works – Harvey Case – Project v. Owner Expenses – Penalties May Not Be Worth The Principle! – David Case – Pays To Avoid Controversial Programs and Acts (coinsurance and default), Or Be Prepared Ahead Of Time – Livecchi Case – Owner Advances And Repayments – Respect Surplus Cash, Get Approvals and Keep Receipts!