Property Compliance News Briefs - November 2010

Monday, November 1, 2010

Owners of multifamily rental developments that receive funding, including tax credits, from the state of Texas must report the number of vacant units to the Texas Department of Housing and Community Affairs (TDHCA) each quarter. To comply, owners must submit their quarterly unit status reports through TDHCA’s online compliance monitoring and tracking system (CMTS). Reports are due by the 10th of the month in January, April, July and October, and must show occupancy as of the last day of the previous month. The next deadline will be January 10, 2011. Access the CMTS at www.tdhca.state.tx.us.

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The National Multi Housing Council (NMHC) announced the development of an improved accounts-payable data transfer standard through the Multifamily Information and Transactions Standards (MITS) initiative. MITS is a coordinated effort to create shared data standards for the apartment industry. Accounts Payable 4.0 allows for payables processing data exchange within a firm or among organizations, and includes incoming requests, processing, invoice reconciliation, payment requests and property management software data transfer. NMHC says approximately 75 large apartment firms and software providers have come together to work on the MITS initiative. The accounts payable standard, like MITS’ nine other data transfer standards, is available free of charge at www.mitsproject.org.

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The Ohio Housing Finance Agency (OHFA) launched DevCo, the agency’s new multifamily development and compliance database. After OHFA fully implements DevCo internally, property owners and managers will be able to certify residents online. As part of this effort to consolidate all multifamily housing information into a single database, OHFA released an upgraded Affordable Housing Funding Application (AHFA), available on the agency’s web site. Through DevCo, all information received from the AHFA through a project’s final compliance inspection will now be recorded in a single repository to serve the agency’s multifamily information requirements. More details are available at www.ohiohome.org.

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The Arkansas Development Finance Authority (ADFA) released an updated low-income housing tax credit (LIHTC) program compliance monitoring policies and procedures manual, effective October 7. The manual presents an overview of ADFA’s LIHTC compliance monitoring policies and procedures, which are designed to help owners and managers of LIHTC properties remain in compliance. Download the updated compliance manual from www.taxcredithousing.com.

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U.S. Residential Group (USGR) was awarded contracts from August to October to manage more than 8,300 units in 39 properties located in seven states. The fee-based management company was formed last spring to provide nationwide multifamily real estate services as a Pacific West Management affiliate, with an emphasis on stabilization and repositioning of distressed properties, resident retention, construction and rehabilitation management, capital needs assessments and transitional management of real estate owned property. USGR’s property base includes conventional, affordable and special services properties and both large and small multifamily communities.

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The U.S. Department of Housing and Urban Development (HUD) Office of Assisted Housing Preservation (OAHP), which requires receipt of mortgage restructuring note payments, typically payable from 75 percent of cash flow, within 10 days after filing the audited financial statement, has implemented an asset management policy demanding repayment of certain fees related to Mark-to-Market properties, Nixon Peabody LLP reports. OAHP’s contractor, MBI Inc. is mailing invoices for repayment of past disbursements by the owner of the HUD-approved incentive performance fee and/or capital recovery payment if the payments are even one day late. OAHP has also advised owners to advance funds in instances where MBI concludes that repairs made with operating funds should have been paid from the reserve account, and then to repay the funds when a reserve release is approved by the HUD program office. However, this practice contradicts a HUD rule that prohibits advances and repayment without the HUD program office’s prior approval. Nixon Peabody says OAHP’s interpretation of which costs should be paid from project operations versus reserves is in flux, and that this ongoing practice has only recently become clear to the industry.

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