2012 Affordable Housing Program Next Steps

Transcription

1 2012 Affordable Housing Program Next Steps January February 2013 Recorded Version Module 3: Monitoring and Reporting, Watch List 1

2 Agenda 1. Terminology 2. AHP Award Letter and Agreement 3. Timing and Use of Subsidy 4. Modifications to Project or QC (online) 5. Retention 6. Disbursement (online) 7. Monitoring (online) 8. AHP Watch List 9. Contact Us! 2

3 Terminology AHP - Affordable Housing Program, 12 CFR 1291 ACC - Annual Compliance Certification CIM - Community Investment Manager Closeout - Closeout Monitoring at Completion FHLB Boston - FHFA Federal Housing Finance Agency HCI Housing and Community Investment Dept. 3

4 More Terms LIHTC Low Income Housing Tax Credit Member FHLB Member Financial Institution PMR - Periodic Monitoring Report QC Qualifying Characteristics SAPR Semiannual Progress Report Sponsor - Developer/Owner of AHP Initiative 4

5 Monitoring Overview All online, similar to Application process Semiannual Progress Report (SAPR) AHP Closeout Monitoring Review Long-Term Monitoring (rental only) Annual Compliance Certifications (ACC) Periodic Monitoring Reports (ACCPMR) 5

6 Initial Monitoring Semiannual Progress Report (SAPR) Submitted online twice a year (June and December) Notification sent User name and password required for BOTH Member and Sponsor Developer/Owner 6

7 Semiannual Progress Reports Description of current initiative status Any changes to the sponsor s and/or project owner s financial status? Discussion of any anticipated changes to project, parties Characteristics of the project Sponsor Project owner Sale or refinancing or other Funding sources Development timeline? 7

8 Semiannual Progress Reports Revised development or operating budgets Document funding commitments Description of changes to the QC If AHP funds have been drawn, evidence of funds transferred to Sponsor/project If applicable: Certificates of Occupancy Rent roll or homeownership spreadsheet Photos or marketing information Other documentation Evidence of use of AHP subsidy 8

9 AHP Closeout Monitoring (at completion) Keep in mind it is all about eligibility, feasibility, need for subsidy and scoring! Upon completion of the project, FHLB Boston will conduct a final compliance review to ensure the initiative s compliance with: Original commitments made in the application Scoring commitments in the QC FHLB Boston s Feasibility Guidelines AHP Regulation 12 CFR

10 AHP Closeout Monitoring (at completion) Notify FHLB Boston the development is complete/units sold FHLB Boston generates the online form and s the Member and Sponsor Streamlines process Almost paperless Site visit may be required 10

11 Completion is Defined as: Rental: Certificates of Occupancy If no CO, 80% occupancy and all AHP funds disbursed to project Homeownership: Closing date of the purchase of the last AHP-assisted home 11

12 AHP Closeout Review - Homeownership Homebuyer incomes comply with targeting committed at application using: Homeownership spreadsheet listing all units Third-party income documentation for all AHP units showing eligibility at the time of program qualification. Scoring elements of QC have been fulfilled Award Conditions must be met Empowerment services have been provided and can be evidenced with documentation AHP subsidies used for eligible purposes Executed/signed HUD-1 Settlement Statements 12

13 AHP Closeout Review - Homeownership Recorded AHP mortgage(s) and executed note(s) Evidence of AHP funds transferred to sponsor Evidence that AHP subsidy pass through to homebuyer(s) Final development sources and uses budget Explanation of any changes to budget Homebuyer education certificates 13

14 AHP Closeout Review - Homeownership Cost certification or other documentation showing use of AHP funds Affirmative marketing materials Photos 14

15 AHP Closeout Review - Rental Tenant incomes at move-in, comply with targeting committed at application: Rent roll listing all units (FHLB template) Third-party income documentation for a minimum of 10 percent of AHP units (sample selected by system) Rents do not exceed published HUD or LIHTC income limits (<30% of targeted monthly household income limits) Scoring elements of QC have been fulfilled Empowerment services documented AHP subsidies used for eligible purposes Evidence of AHP funds transferred to Sponsor 15

16 AHP Closeout Review - Rental Final development sources and uses budget (Cost Certification) Current 15-year operating proforma Explanation of changes to budget and/or proforma Recorded mortgage and executed note for AHP Direct Subsidy and/or Subsidized Advance, as applicable Cost certification or other documentation evidencing use of AHP funds IRS Form 8609 for LIHTC initiatives (first year, fully executed) 16

17 Long-Term Monitoring (LIHTC) If an IRS Form 8609(s) is received at Closeout and the LIHTC project remains in compliance with the tax credit regulations, the ACC and PMR will not be required If the LIHTC project is issued an IRS Form 8823, you will be required to notify FHLB Boston and forward a copy of the form. Additional reporting may be required Applies to tax credit exchange and TCAP as well 17

18 Long-Term Monitoring (Rental Only) Annual Compliance Certification (ACC) Any current or anticipated financial or physical changes to the initiative? Any current or anticipated changes to the QC? Any current or anticipated changes to the sponsor or owner s organization or financial status? Sale or refinancing? Other? 18

19 Long-Term Monitoring (Rental Only) Annual Compliance Certification (ACC) Completed annually until end of 15-year affordability retention period Certify tenants move-in rents and incomes are in compliance with QC and Agreement Certify housing is habitable Combined with PMR in the years PMR is due (ACCPMR) 19

20 Long-Term Monitoring (Rental Only) Periodic Monitoring Report (ACCPMR) Every 2, 4, or 6 years (depending on subsidy received. May include site visit and file review) Certify tenants move-in rents and incomes are in compliance with QC and Agreement Certifying housing is habitable Rent roll of all units on our form Third-party income documentation for at least 10 percent of AHP units turned over since last report, in accordance with FHLB Boston sampling requirements 20

21 Long-Term Monitoring (Rental Only) Periodic Monitoring Report (ACCPMR) Any current or anticipated financial or physical changes to the initiative? Any current or anticipated changes to the QC? Any current or anticipated changes to the sponsor or owner s organization or financial status? Sale or refinancing? Other? 21

22 AHP Rating System 1: Full compliance with AHP Regulation, HCI policies and procedures 2: In compliance but missing reports or documentation not required for regulatory compliance 3: Not physically completed after two years from AHP Award Missing required reporting or documentation (e.g. SAPR, ACCPMR) Closeout Monitoring not finished within 12 (ownership) or 16 (rental) months Overdue documentation (2 rating, more than 60 days) Other circumstances 4: Watch List 22

23 Why a Project is Placed on the Watch List Not compliant with regulations Non-compliance with Targeting or QC Experiencing financial distress Subject to a lawsuit and/or noncompliance Late or delinquent AHP reports Delayed completion (greater than 27 months) Delayed Closeout Monitoring (3 rated) Issues not resolved within 90 days (3 rated) Other 23

24 Watch List The Sponsor and Member will receive notice when added to the Watch List CIM will work with the Member and the Sponsor to cure any noncompliance issues Requires additional monitoring and reporting May affect future funding If noncompliance is not cured, recapture of AHP funds may be required 24

25 AHP Resources Overview, templates, links to reports AHP Implementation Plan All reports Extensions, Modifications Disbursements AHP Closeout Review All Active Projects 25

26 HCI Department Contacts Manager of Programs and Outreach Theo Noell (Fairfield, Hartford, Litchfield & New Haven Counties CT) Community Investment Managers Tobi Goldberg (ME & Essex County) Kathy Naczas (NH, VT, Berkshire, Franklin, Hampton, Hampshire & Worcester Counties MA) Christine Rogers (RI, Tolland, New London, Middlesex County & Windham Counties CT, 26

27 HCI Department Contacts Kenneth Willis, First Vice President/Director, Mary Ellen Jutras, Vice President/Deputy Director, Paulette Vass, Community Development Advance Manager, Susan Younis, Equity Builder Program Manager,

28 Questions? 28