INTEGRATED PROPERTY MANAGEMENT SOFTWARE

Transcription

1 INTEGRATED PROPERTY MANAGEMENT SOFTWARE January 15, 2013 Compliance Corner with Mary Ross 2013 Income Limits Released For Second Time Effective and Online Security Awareness Training Changes 2013 Income Limits Released For Second Time Effective On December 4, 2012, the 2013 Income Limits were released for HUD multi-family programs. Apparently, after review, it was discovered that estimates of the medians were roughly 3% too low in certain parts of the country. That threw off the limits calculated from those numbers. On December 11, 2012, new income limits for 2013 were posted on the HUDUser web site at These 2013 Income Limits replaced the 2013 Income Limits posted on December 4. Many of the income limits remain the same. However, in some cases, income limits have increased since the release of the December 4 income limits. This means more families will be eligible for HUD assistance. While we cannot analyze each area, we do not know of any situation where the December 4 income limits were higher than the corrected December 11 income limits. As far as we know, in most cases, income limits either remained the same or increased. Inside this issue: From Compliance Corner: 2013 Income Limits Effective and Online Security Awareness Training Changes Come Meet Us: AHMA-PSW AZ and NV From Client Care: Reconcile Rent Before Each Month End Close From Sales: 2013 Trade Show and Conference Schedule Coming in February: GOOD, GOOD, GOOD NEWS!!! HUD has changed guidance regarding the implementation of the 2013 income limits. (See RHIIP ListServ 292) If you have not implemented the 2013 Income Limits, you have 45 days from December 11, 2012 to implement the 2013 Income Limits currently posted. This means that the 2013 Income Limits must be used for all MI and applicable IC certifications effective January 24, 2013 or later. Owner/agents may implement the 2013 Income Limits as early as December 11, (continued page 2, see Income Limits) Come Meet Us AHMA-PSW Arizona and Nevada Seminars If I cannot do great things, I can do small things in a great way. Dr Martin Luther King 2/11/ /12/2013 Arizona 4th Annual Seminar Desert Willow Conference Center 4340 E. Cotton Center Blvd Phoenix AZ 02/14/2013 Nevada 3rd Annual Seminar Golden Nugget Hotel & Casino 129 E. Fremont Street Las Vegas, NV

2 Page 2 Now available at: CornerStone v HUDControl v RHSControl Pro 2011 v Continued from pg 1- Income Limits If you are managing a property with a HUD contract and have implemented the 2013 Income Limits, there are a few options. Let's review. Note: For clarity, the December 4 release is referred to as 2013 Income Limits V1 (version 1) and the December 11 release is referred to as 2013 Income Limits V2 (version 2). Scenario 1 You implemented the 2013 Income Limits V1 released on December 4 and the 2013 Income Limits V2 released on December 11. In this case, continue using the 2013 Income Limits V2 posted on December 11. Be sure to check MI and applicable IC certifications effective between December 4, 2012 and December 11, Any of these certifications created using the 2013 Income Limits V1 (released on December 4) should be corrected using the 2012 Income Limits. Scenario 2 You implemented the 2013 Income Limits V1 published on December 4 but did not implement the 2013 Income Limits V2 published on December 11. IPM-Software would like to welcome our new business. To all of our current clients, thank you for your continued support. There are no secrets to success. It is the result of preparation, hard work, learning from failure. - Colin Powell Option 1: Go back and use 2012 Income Limits until you are ready to implement the 2013 Income Limits V2 (must implement by January 24, 2013). If you used the 2013 Income Limits V1 starting with the certifications effective December 4, 2012 or later, MIs and applicable IC certifications effective starting December 4, 2012 will have to be corrected using the 2012 Income Limits. Option 2: Correct all MI and applicable IC certifications effective starting December 4, 2012 using the 2012 income limits. Go ahead and enter the 2013 Income Limits V2. Use the new income limits for all certifications moving forward. Scenario 3 You have not implemented either of the income limit changes. In this case, you have 45 days from December 11, 2012 to implement the 2013 Income Limits V2 which are currently posted on the HUDUser web site. Scenario 4 Your software vendor automatically updated the income limits for you. If your software vendor updates the income limits for you, make sure the 2012 Income Limits V1 are used until December 11. On December 11, 2012 or shortly thereafter, the 2013 Income Limits V2 were probably entered by your vendor. If you denied any applicants between December 4, 2012 and December 11, 2012, based on the 2013 Income Limits V1 (posted on December 4), please check the income limits to see if those applicants would be eligible using the appropriate income limits. If you are still using the 2012 Income Limits, use the 2012 Income Limits. If you are using the 2013 Income Limits V2, use those income limits. If applicants were denied in error, they should be returned to the waiting list. You should make appropriate notes regarding denial and your decision to reinstate. (continued page 5, see Income Limits)

3 Notes from Client Care Newsletter January 2013 Reconcile Rent Before Each Month End Close CornerStone Rent users can simplify the month end close process by using the Rent Reconciliation spreadsheet. The spreadsheet utilizes a suggested list of reports to run at the end of the month before closing Rent and moving into the next accounting month. IPM Software created a spreadsheet that uses the totals from the various reports and auto calculates to show if there are items that need to be reviewed. Using the Excel spreadsheet will assist you in making sure that your Rent month is in balance before completing period end processing. The Rent Reconciliation process in CornerStone may seem daunting when you first look at the documentation; however, it is a fill in the blank process. It can go quickly, assuming all the numbers add up, or it can become a little more complicated when the numbers entered in the spreadsheet do not end up matching. When the items do not match, you have a starting point to find the item(s) causing an issue. There are two documents necessary for the reconciliation, an electronic copy of the Reconciliation spreadsheet and the instruction sheet that lists the reports that must be run and offers some clarification on which entries on each report should be used in the spreadsheet. The documents are available from our Client Care Department. AS reports located under Rent Assistance Subsidized AS21 Assistance Standard Rent / Subsidy RT87 Gross Potential Summary RT77 Transaction Report By Charge - select Rent and Assist Only RT93 Receivables General Ledger Posting RT92 Monthly Bank Deposit Log by Account RT42 Security Deposit Transactions RT33 Summary Tenant Activity Report RT32 Prepaid Rent Report RT31 Unapplied Payments Report Reports needed for Reconciliation RT reports located under Rent Resident Conventional RT21 Standard Rent / Subsidy RT87 Gross Potential Summary RT77 Transaction Report By Charge - select Rent and Assist Only RT93 Receivables General Ledger Posting Additional Reports that may be needed to verify information Page 3 RT92 Monthly Bank Deposit Log by Account RT42 Security Deposit Transactions RT33 Summary Tenant Activity Report RT32 Prepaid Rent Report RT31 Unapplied Payments Report RT73 Gross Potential Reconcile Report RT73 Gross Potential Reconcile Report The spreadsheet instructions direct you to the numbers that you need to locate and directs you where to enter the totals on the spreadsheet. For instance: 1.) From the RT21 Standard Rent /Subsidy or AS21 Assistance Standard Rent /Subsidy a. Enter the Total Market Rent From the AS 21 1a

4 Page 4 Continued from pg 3 Reconciliation IPM-Software You would enter the total from the AS21 on the previous page, designated as 1 a on the instructions under the 1 a section in the spreadsheet. 1a 1b 1c Proceed to the next items, locate the totals on the report, and enter them in the 1b and 1c cells on the spreadsheet. 1. From the RT87 Gross Potential Summary b. Enter the Gross Potential (Sum of the Gross Potential Rents) c. Enter the Reconciled Gross Potential. (continued page 5, see Reconciliation) 1b 1c

5 Continued from pg 3 Income Limits Remember, income limits do not apply to existing residents who currently receive subsidy (annual AR and interim IR certifications) since income eligibility is determined at move-in. See HUD Handbook Revision 1, Change 3, Paragraph 3-4. Note: Income limits are not considered when an initial certification (IC) is created to reinstate assistance to a previously qualified household whose assistance was terminated because an increase in income (after move-in) reduced the household s assistance to zero. Due to the Housing and Economic Recovery Act of 2008 (Public Law ) these income limits may not be applicable to projects financed with Section 42 Low Income Housing Tax Credits (LIHTC) or section 142 tax exempt private equity bonds. These projects should use the Multifamily Tax Subsidy Project Income Limits available at Change to Online Security Awareness Training for EIV and TRACS Anyone with access to imax, TRACS or EIV through Secure Systems and any staff that may have opportunity to view EIV reports as part of the HUD certification process must complete required Security Awareness Training each year. On November 28, 2012, the module for online security training changed. To complete the online security training, please follow the revised steps below. Open your internet browser Type Press Enter Newsletter January 2013 Click on CyberAwareness Challenge (for DoD and Federal Personnel) icon on the IA Education, Training and Awareness screen (this is on the left) Click on Launch CyberAwareness Challenge Federal Version to proceed with the training HUD issued RHIIP ListServ #287 providing this new information. Mary Ross, PO, FHC & MORS President and founder of Ross Business Development., she is a nationally recognized expert in property management training and consulting services. For over 17 years, Mary has helped senior executives throughout the industry work successfully to meet changing industry and regulatory requirements. She provides clients with high-level consultation and advice on how to succeed in compliance (HUD/Tax Credit) and conventional markets. Continued from pg 3 Reconciliation Please look at the sample to the right. As the numbers are entered the spreadsheet calculates, autofills, and compares the totals. As each section is completed, the spreadsheet reflects if the section passes or fails the reconciliation process. This enables you to pinpoint which reports to check if a section fails. The CornerStone Rent Reconciliation spreadsheet is a tool that all CornerStone Rent users should utilize to streamline their month end close process. Pam Busing As Office Manager her primary responsibilities are handling client invoices and vendor payables, but she also assists when needed with Client Care, testing, and documentation. Page 5

6 Page 6 IPM-Software, Inc Vista Rd, Ste C250 Pasadena, Texas Phone: Phone: Fax: We are on the Web! Contact us at: admin@ipm-software.net support@ipm-software.net sales@ipm-software.net Or through Live Chat at: Notes from the Sales Department 2013 Trade Show and Conference Schedule We always enjoy the opportunity to meet our clients in person. Look for us the following meetings and please stop to say Hello. NCSHA 1/16/13 1/18/13 AHMA-PSW AZ meeting 2/11/13-2/12/13 AHMA-PSW NV meeting 2/14/13 SWAHMA-TX meeting 3/7/13 3/8/13 NAHMA 3/24/13 3/26/13 SAHMA-FL 4/23/13 4/25/13 SAHMA-KY 5/13/13 5/16/13 AHMA-PSW 5/19/13 5/21/13 SAHMA Regional Meeting 8/12/13-8/14/13 AHMA East Texas monthly Check the newsletter for additional dates and locations. Contact Your IPM-Software Sales Representative search for ipm-software.net at (800) Karen Stevenson ext kstevenson@ipm-software.net Rue Fox ext rfox@ipm-software.net Our Mission Statement Our continuing mission and commitment is to profitably offer the most accurate property management and compliance software to the Affordable Multi-Family Housing Industry and to provide our customers the best possible service and support. Coming in February: From Client Care - Backing Up: The Most Important Step in Using Your Program From Training Did You Update your IPMS Payroll? From Sales - Watch for CornerStone Updates and Enhancements Come Meet Us: SWAHMA-TX, Dallas, 3/7/13 3/8/13 NAHMA, Washington D.C., 3/24/13 3/26/13 If you would like more information on any topic in this or have questions, or comments, please us at support@ipm-software.net