AFFORDABLE HOUSING CONNECTIONS NOTES FOR CHART REPORTING (FOLLOW THESE INSTRUCTIONS TO AVOID FINDINGS)

Transcription

1 AFFORDABLE HOUSING CONNECTIONS NOTES FOR HTC-12 PREPARATION AND REPORTING: PROGRAM YEAR 2015, DUE MARCH 15, 2016 (FOLLOW THESE INSTRUCTIONS TO AVOID FINDINGS) i. The HTC 12 requires the signature of the authorized Managing General Partner representative. It must be clear to us that the signature on the scanned document is an original: please do not use black ink to sign this document. Documentation of authorization to sign on behalf of Ownership will be required if not already on file with AHC. The original must be scanned and uploaded your Secure Folder before 5 p.m. March 15, Please DO NOT mail, , or deliver the original to AHC: we will not accept it and it will be returned to you. The complete, correct legal name and Tax Identification Number of the Owner entity must be used. ii. For projects allocated credits but not yet Placed In Service, use the form found in the CHART on tab HTC 12: Owner s Certification of Continuing Program Compliance. Complete the top portion of the form, check the box indicating No buildings have been Placed in Service, skip all other items, and sign and date the form. iii. For projects Placed In Service but with the Credit Period beginning in 2016, use the form found in the CHART on tab HTC 12: Owner s Certification of Continuing Program Compliance. Complete the top portion of the form, check the box indicating At least one building has been Placed in Service but owner elects to begin credit period in the following year, skip all other items, and sign and date the form. iv. For projects in the first 15 years of the compliance period, use the form found in the CHART on tab HTC 12: Owner s Certification of Continuing Program Compliance. Items 1 through 15 must each have a response, and the form must be signed and dated. v. For projects in the Extended Use Period, use the form found in the CHART on tab HTC 12 (Y 15): Owner s Certification During Extended Use Period. Items 1 through 14 must each have a response, and the form must be signed and dated. vi. Owner must answer questions accurately and provide notes on page 3 or in an attachment to describe any exceptional circumstances. Some examples: Question #3 (#2 if in Extended Use)-Missed or Late Recertifications must be reported with the response to this question and explained on page 3 or in an attachment. These must also be accurately reported on the HTC-13. Question #8 (#7 if in Extended Use)-Identify any Noncompliance that occurred during the reporting period related to an owner s annual certification that the buildings and units in an HTC project were suitable for occupancy. (See Treas. Reg (c)(1)(vi).) The owner also must certify that state or local authorities responsible for making inspections did not issue a violation report for any building or low-income unit in the project. If a violation notice or report was issued, the owner must respond No and attach a statement summarizing the violation report(s) or notice(s) to the annual certification. The owner must also state whether the violation was corrected and provide date(s) of correction. It is not necessary to attach copies of violation reports or notices except in unusual situations. If you have questions about how much information to provide, please contact us. Question #14 (#13 if in Extended Use) - Answer NA unless the owner received its credit allocation from the portion of the state ceiling set-aside for a project involving qualified non-profit organizations under Section 42(h)(5) of the Code. See Form 8609 Part I, 6(g). If this box is checked, or if the project s LURA indicates a nonprofit must materially participate in the project s management, answer Yes and upload AHC form Certification of Material Participation of Non- Profit with the CHART and HTC 12. This form may be found on our website; it is considered an attachment to the HTC 12 and must be signed by the authorized Managing General Partner representative. Question #15-Answer Change to report a change in Owner or Management, or to report a change in the contact person. Details must be reported on page 3 or in an attachment. Additional documentation will be required with a change of Ownership and/or Owner Representative.

2 AFFORDABLE HOUSING CONNECTIONS NOTES FOR CHART REPORTING (FOLLOW THESE INSTRUCTIONS TO AVOID FINDINGS) 1. Contents of CHART: a. Instructions Tab i. Please review the Instructions tab, as many instructions have changed from ERP to CHART. ii. You may use the button Click here to Import Data Now to import from ERP to CHART. The larger your project, the longer it will take to import: during our testing, we found it can take up to 10 minutes for projects with over 500 entries in the Data tab. At this time, you will not be able to import from one project s CHART to another CHART. The ability to import from one CHART to another will be available for Program Year 2016 reports. b. Project Tab i. New fields have been added that will need to be completed manually with this first reporting year using CHART. Please be sure to review and complete the form in its entirety. We suggest clicking in each yellow cell as some have drop-down selections. For example, Cell F44 has a dropdown for you to select the correct Suballocator for the project. Many of these selections will auto-populate other areas of the workbook. ii. The Project tab must be completed accurately to ensure that the rest of the workbook is populated correctly. If incorrect information is entered here, or if cells are left blank, this may cause errors on the HTC-12 (Owner s Certification of Continuing Program Compliance) and other tabs within the CHART, which in turn may cause a finding of noncompliance related to incomplete or inaccurate certifications or reports. iii. Owner Representative Contact AHC s database allows ONLY two contact persons for each HTC project: Owner Representative: authorized Managing General Partner representative. AHC may ask for signatory authorization if not on file. Managing Agent: representative of the Management Company that is under contract with the Owner for management responsibilities related to the project. We will not accept a consultant or other third party as an authorized Management Company contact. It is the responsibility of project staff to share monitoring correspondence within their organizations and with any consultant or other third party who may be engaged for compliance support to the management company. If any change occurs for the contact person/s, the information must be reported on page 3 of the HTC-12, in addition to reporting on the Project tab. It is the Managing General Partner s responsibility to promptly report any changes that occur to AHC. iv. The information entered in the HUD Report section (rows ) will auto-populate the Project Data tab of the workbook. HUD has mandated that this information be reported. Please be careful to complete these cells correctly, following the instructions on the Instructions tab. c. Bldg List i. New fields have been added that will need to be completed manually with this first reporting year using CHART. Please refer to the Instructions tab for explanations of what is required. d. Unit List i. New fields have been added that will need to be completed manually with this first reporting year using CHART. Please refer to the Instructions tab for explanations of what is required. ii. When data is imported from ERP to CHART, the Unit Type column for each unit must be updated using the new drop-down options, even if auto-populated after importing. 1

3 iii. Ensure that the lowest rent and income restrictions as reflected in the LURA, targeted unit types, and accessibility are accurate. Changes from year to year must be reflected so that this tab is accurate as of 12/31 of the reporting year. iv. The Targeted Unit Type for each unit must be updated if the unit is targeted to more than one type of population. v. Column AL Was this unit vacant on Dec 31 st of the reporting year has a default entry of N. This must be changed to Y if the unit was vacant on 12/31 of the reporting year. This will populate the TenantData tab; HUD has mandated that this information be reported. vi. The Unit List sets forth the owner s plan for achieving the Applicable Fraction and all other setasides and restrictions associated with each building. When completing the Project, BldgList and UnitList Tabs, keep in mind that in addition to entering the building address, bedroom number and square footage for each unit, you will need to enter the owner's plan for achieving the various set-asides for rent (60%, 50%, 30%, etc.), applicable fraction (assigning HTC, High HOME/HTC, Market, Common Space, etc. status to each unit), as well as various income restrictions and special population targeting (i.e., units that were set aside to serve special populations such as handicapped, HIV/AIDS, elderly, etc.). If no special targeting is identified, assume that the property is family housing. vii. Common Space Unit Status If you have made any changes to the status of a common space unit or site manager unit during calendar year 2014, you are required to complete and submit the Treatment of Common Space Unit form, (unless previously identified and approved by Suballocator through AHC). The form can be found on our website. Assigning these designations to each unit to set up the buildings will not restrict or "lock in" those units for the duration of the compliance period. The designation of each unit will depend on the income, rent, student status, etc., of the individual households occupying each unit and, in some cases, will also depend on when the Available Unit Rule is triggered. The restrictions reported on the Unit List and the Tax Credit Summary Report ( Data tab of CHART) must match as of 12/31 of each year of compliance, and must reflect all restrictions that are reported in the Extended Use Agreement. e. Building Map i. The Building Map identifies each unit type (Market, HTC, Common, HTC). In order to generate the Building Map, you must first complete the Project, BldgList and UnitList Tabs (see the CHART instructions tab for assistance). No manual entry is required on this tab. f. UA Tab i. New fields have been added that will need to be completed manually with this first reporting year using CHART. Please refer to the Instructions tab for explanations of what is required. ii. The layout of this tab has been changed to accommodate: changes to the Utility Allowance that may have occurred during the reporting year more than one Unit Configuration (Apt/MultiUnit, TH/Duplex, or Single Family) for a project up to 10 pairs (current/previous) of Utility Allowance information per project. iii. When data is imported from an ERP to CHART, the UA Source must be updated using the new drop-down options, even if auto-populated after importing. iv. Update the Current information with the most recent (for example, 1/1/2015) Utility Allowance amounts v. Update the Previous information with the Utility Allowance amounts that were effective immediately prior to the most recent amounts (for example, 1/1/2014). vi. If there is more than one Unit Configuration at your project (for example, apartments and townhomes), you must report current and previous Utility Allowances separately for each Unit Configuration 2

4 3 vii. It is not necessary to report BINs separately unless they have different Utility Allowances. viii. If different BINs at your project have different Utility Allowances, they must be reported separately on this tab. ix. Utility Allowance Source Documentation must be uploaded with the CHART for those projects subject to physical inspection and file review during x. If more than 10 pairs of Utility Allowance information is required, simply copy and paste the last pair of tables into the next rows of the worksheet. g. Tax Credit Summary Report Data Tab i. New fields have been added that will need to be completed manually with this first reporting year using CHART. Please refer to the Instructions tab for explanations of what is required. ii. When you import from ERP to CHART, the restrictions reported on the old ERP will automatically populate in Columns Z through AC, and Column AF. AHC NO LONGER REQUIRES REPORTING OF RESTRICTIONS FROM OTHER FUNDING SOURCES unless the restrictions are also reflected in the LURA. Columns Z through AC, and Column AF should be the lower restrictions imposed by the LURA, and must be manually updated if they reflect other funding sources. HOME Restrictions will no longer be reported on the Data Tab: they must be reported separately on the HOME Data Tab in CHART. iii. After importing data from an ERP to CHART, Columns AD, AE, AG, and AH ( LIHTC 60 or 50, Maximum LIHTC Income, LIHTC Rent 60 or 50, Maximum LIHTC Rent ) will be blank. We are requesting that you manually update all of these columns to reflect HTC restrictions. Column AF ( Current LIHTC Income Limit x 140%,) will report 140% of the lowest income restriction. We are requesting that you manually update this column to reflect 140% of the HTC maximum income limit. iv. If the only restrictions are those imposed by the IRS Form 8609, we are requesting that this information be manually duplicated to reflect the data reported in the Lowest Restrictions Columns AD through AH. v. Column G, Forwarding Zip Code, may be left blank for the 2015 reporting year. Going forward, for all vacating households during a reporting year, a forwarding zip code or Not Available must be entered. vi. Each unit must report data for all unit turnovers, transfers and recertifications that occurred during the entire 2015 calendar year. Do not show past year data unless a. Unit was vacant on January 1 of 2015, in which case the previous household data must be reported in order to establish whether the unit was a Qualified Vacant or Unqualified Vacant b. Unit has been vacant for all of 2015, in which case the previous household data must be reported. If a household vacated in 2015 but before the 2015 recertification was due, leave the previous (re)certification information in place. For HTC units: report all income (re)certification data along with updated tenant paid rent and utility allowance data. a. 100% projects exempt from income recertification must leave the Current Year Gross Annual Income column BLANK (do NOT report 0 ) for recertifying households (all other information must be updated as of the recertification date). b. For 100% projects in Extended Use (which are exempt from income recertification AND student status recertification) please update all information except income and student status. Cert Date column must reflect effective date of updated information (Tenant Paid Rent, Utility Allowance, # of household members, etc.). Leave the Current Year Gross Annual Income column BLANK for households residing at project for more than one year. For Households with Housing Assistance (such as Section 8 Voucher): If you did not know the tenant portion of the rent when the tenant signed their certification, Best

5 Practice is to enter an explanatory comment such as Section 8 in process in the User Notes of the TAX CREDIT SUMMARY REPORT ( Data tab of CHART). On the TIC, TBD may be entered as the Tenant Paid Rent, or you may wish to enter the contract rent, or you may choose to leave the information blank. You should be able to click the type of assistance (TBA or PBA) on the TIC even though you don t know the tenant s portion that will then automatically transfer to the TAX CREDIT SUMMARY REPORT ( Data tab of CHART). Once the agency providing the assistance has informed you of the tenant s portion of the rent, page 2 of the TIC musy be MANUALLY UPDATED with the correct Tenant Paid Rent, Gross Rent, and Rent Assistance. This change must be initialed and dated by the Management Agent, but it is NOT necessary to obtain the tenant s initials for the change. The correct amount must also be MANUALLY ENTERED in the Tenant Paid Rent column of the TAX CREDIT SUMMARY REPORT ( Data tab of CHART), and the Section 8 in process comment should be deleted. For Market units: list only move in date, move out date, tenant name, and Initial Cert response. Entering other data results in error messages on the TAX CREDIT SUMMARY REPORT ( Data tab of CHART). vii. Unit Transfers: The CHART Instructions tab provides detailed instructions on reporting a unit transfer. viii. User Notes: this column is for reporting any details or clarifications about 2015 events related to this household or unit. Use this space to: a. report data on compliance with the Available Unit Rule ( AUR ) when triggered by a household with income that exceeds 140% of the applicable limt. b. report UPCS issues in the unit c. report other funding sources (for example, GRH) d. clarify what might otherwise appear to be noncompliance (such as households vacating without recertifying, low income-to-rent ratios, extended vacancies, short-term tenancies, etc.). Mixed Income projects must use User Notes to report details on AUR replacement unit(s) and maintenance of the building s applicable fraction. h. Move-in date (TIC and TAX CREDIT SUMMARY REPORT ( Data tab of CHART)) - For new projects with existing tenants(acquisition/rehab), this date should not precede the acquisition placed in service date. i. When adding a household member, the effective date is the date on which the additional household member moves into the unit. i. If the household member is added within the first six (6) months of occupancy, a second entry on the Tax Credit Summary Report is required for the household. ii. If the household member is added after the first six (6) months of occupancy, a second entry on the Tax Credit Summary Report is NOT required for the household. j. HOME Data Tab: If there are HOME assisted units in your project and you report to AHC for HOME compliance for the project, please see separate HOME Submission Requirements. k. ProjectData Tab: This tab will auto-populate based on information entered elsewhere in the workbook. The information in this worksheet will be used to populate HUD-required reports. 4

6 5 l. TenantData Tab: The information in this worksheet is required for HUD reports. It must be completed in its entirety. i. If you use Yardi software, CHART will be produced with this tab populated. ii. If you use RealPage software, this tab will be produced as a separate Excel spreadsheet. You will need to copy the information from RealPage s spreadsheet, and paste the information into CHART s TenantData tab. iii. If neither of the above apply to you (you have used ERP and will use CHART as a stand-alone product), this tab must be manually completed for the 2015 reporting year. Going forward, it will auto-populate when a TIC is completed and you have clicked the Transfer to Data Sheet button. Clicking this button sends the information to all relevant tabs (Data, HOMEData, and TenantData tabs). NOTE: HUD has indicated that income and asset information will no longer be required to be reported for each individual household member. Only the total household income per income type (employment, social security, etc.) will be required. Only total assets and income from assets (actual and/or imputed) will be required. It is not necessary to complete columns EG through EU: you may leave these blank It is not necessary to complete columns FA through FO: you may leave these blank

7 Dear HTC Manager: Welcome to Affordable Housing Connections secure electronic file upload system. For added security, remember to change your password regularly. How to Obtain 2015 CHART We have requested that the Owner Certification and Authorization related to CHART be printed, signed, scanned, and uploaded into each of your projects Secure Folders. Once that has been received, CHART will be uploaded to the Secure Folder. You must save it to your server or hard drive before you will be able to begin to work on it HTC File Upload Instructions 1. Please name your 2015 CHART using the following format: Date Uploaded, Project Name, Program Year, CHART (no commas) e.g SampletownLofts 2015 CHART. 2. Log into your Egnyte account at 3. On the screen, you will see your projects listed. a. Expand the Project folder to view Program Year folders. b. Expand the 2015 Program Year folder to view drop boxes for AHC and Owner. c. Click on Owner folder. This is where you will upload your CHART and all other documents for the project including any follow-up documentation requested and responses to Reviews. 4. Click on the Upload button on the toolbar and the Single File Upload dialog box will pop up. Page 1 of 3

8 5. Click on Browse to locate the appropriately named 2015 CHART in your computer. 6. Click on Start Upload to begin the upload. 7. Repeat the process for your HTC-12. Naming format should be: Date Uploaded, Project Name, Program Year, CHART (no commas) e.g SampletownLofts 2015 HTC For files larger than 25MB and/or multiple files or folders, click on the Java Uploader link to access the multi-file uploader (Java based uploader). a. Examples of files that can be uploaded include UA source documents and attachments to page 3 of the HTC-12. b. You may either click on Select file(s) or simply drag and drop files/folders into the rectangular box for uploading. c. Click on Start Upload to begin the upload. A progress bar will be displayed. 9. After all your reports and files are uploaded, click the Log Out button at the top right corner of the screen and close your browser. Page 2 of 3

9 10. AHC will receive notification of the successfully completed file upload. Egnyte is committed to providing a world class secure infrastructure and data protection. View the Egnyte Security Whitepaper Page 3 of 3

10 AFFORDABLE HOUSING CONNECTIONS NOTES FOR HTC PROJECTS IN FIRST YEAR OF REPORTING (FOLLOW THESE INSTRUCTIONS TO AVOID FINDINGS) The following must be submitted in addition to other required reporting requirements: a) IRS Form 8609 with Part I and Part II completed, signed and dated, as sent to IRS b) Multiple Building Attachment to IRS Form 8609, as sent to IRS (if applicable) c) IRS Form8609-A completed, as sent to IRS d) IRS Form8586 completed, as sent to IRS e) Application for Form 8609 (HTC-3), completed, as submitted to Suballocator, including a. all attachments or exhibits b. documentation of Gross Rent Floor Election, as applicable f) Recorded Extended Use Agreement a. If an Extended Use Agreement has not yet been recorded, this is a reportable event of noncompliance. The HTC-12 must be accurate in its response to Item 13. b. If an Extended Use Agreement has been delivered to the county but proof of recording is not yet available, submit the receipt provided by the county and a copy of the un-recorded Agreement. A recorded copy must be submitted as soon as it is available. g) Documentation as to how the first year Applicable Fraction was calculated h) If an Acquisition-Rehab project: a tracking sheet documenting unit transfers and relocations of households, as applicable i) If credits were apportioned from the statewide non-profit set-aside pool, or if a nonprofit status was a competitive funding factor a. Certification of Material Participation of Nonprofit (will be required annually) b. Supporting documentation (required only once unless changes occur) i. Partnership Agreement ii. General Partner Agreement iii. Management Agreement or Contract For projects allocated credits but not yet Placed In Service, use the form found in the CHART on tab HTC 12: Owner s Certification of Continuing Program Compliance. Complete the top portion of the form, check the box indicating No buildings have been Placed in Service, skip all other items, and sign and date the form. For projects Placed In Service but with the Credit Period beginning in 2016 or later, use the form found in the CHART on tab HTC 12: Owner s Certification of Continuing Program Compliance. Complete the top portion of the form, check the box indicating At least one building has been Placed in Service but owner elects to begin credit period in the following year, skip all other items, and sign and date the form.