Upload
nasia
View
41
Download
0
Embed Size (px)
DESCRIPTION
Property Management & Tax Credit Compliance. Getting Started Workshop Tera L. Lockley Virginia Community Development Corporation Chrystal Strickler Community Housing Partners Corporation. Presentation Goal. To provide an overview of property management activities to help you: - PowerPoint PPT Presentation
Citation preview
Property Management & Tax Credit Compliance
Getting Started Workshop
Tera L. Lockley
Virginia Community Development Corporation
Chrystal Strickler
Community Housing Partners Corporation
Presentation Goal
To provide an overview of property management activities to help you: Decide whether you are ready to manage your
own property Think about managing in the future, or Make an informed decision on how to choose a
third-party management agent.
Property Management Basics
Developing A Marketing Plan Lease-up Activities Model Lease & Resident Selection Criteria Move-in & Move-out Activities Rent Collections The Operating Budget Process Financial Reporting Long Range Management Plan Preventive Maintenance Fair Housing AA, VRLTA, Section 504 RA, ADA Evaluating The Management Agent & Fee
Marketing Plan
Should Include Property Description Lease-up Goals Targeted Geographic Area Marketing Strategy
Newspaper Advertising. Flyers, Brochures Community Outreach Resident Referrals Open Houses Lease-up Specials Property Signage Calendar of Events
Lease-up Activities
Flexible Office Hours
Maintain Traffic Report
Guests Cards
Model Apartment
Sample Traffic Report
Model Lease & Resident Selection Criteria
Lease Form
Conform With State LTA Requirements Should Be Workable, Lawful, Enforceable Have Attorney Review
Typical Resident Selection Criteria* Employment History Prior Landlord History Credit Review Criminal Background Check
*Other criteria may apply depending upon project financing (ex: LIHTC, Section 8, HOME, Bond Program Financing)
Move-in & Move-Out Activities
New Resident Orientation
Review Lease & Attachments
Walk Through Inspection
Move-in / Move-out Inspection Form
Rent Collections
Develop Property Rent Collection Policy & Forms
Review With New Resident At Move-in Orientation
Enforce!
Agreement For Payment Of Delinquent Rent
Sample Rent Collection PolicyRent is due on the first day of each month. If rent is not paid by the 5th of the month the following action is recommended.
Day of Month Recommended Action
6th A five day pay or quit notice should be issued advising the resident to pay rent by the 11th of the month.
12th The landlord will obtain an unlawful detainer from the local court seeking possession of the unit. The court clerk will set a hearing date at that time.
After the 12th If the resident pays rent after an unlawful detainer is obtained, a rent with reservation letter should be sent to resident advising that the landlord reserves the right to proceed to eviction.
Court Date Upon court ruling for landlord possession for nonpayment of rent, the resident has 10 days to appeal. After the 11th day, the landlord should obtain a writ of possession from the local sheriffs office.
Eviction Process Within 24 hours, the sheriff will post writ on resident’s door giving the resident 24 hours to vacate the property.
Sample 5 Day Notice
Sample Agreement For Payment Of Delinquent Rent
Operating Budget Process
Who Should Be Involved? Should Include A Budget Narrative Includes: Income, Expenses & Debt Svc,
Reserves, Capital Improvements Information To Consider
Prior Year & Current YTD Performance Market Conditions Who Ya Gonna Call? Capital Needs (Ex. Roof Replacement)
Operating Budget Sample
Operating Budget Sample
Operating Budget Sample Narrative
Financial Reporting
Typical Monthly Project Financial Reports
Include: Profit & Loss Statement Balance Sheet Property Rent Roll Accounts Payable Reports Accounts Receivable Reports
Profit & Loss Statement
Sample Balance Sheet
Property Rent Roll Sample Report
Accounts Receivable Sample Report
Accounts Payable Sample Report
Long Range Management Plan
It’s A Multi-Year Forecast
Income Expenses Capital Improvements Capital Needs Assessment
Preventive Maintenance Plan
Benefits Enhances Marketability & Resident
Retention Increased Cost Effectiveness Extends Useful Life Of Equipment Cost Savings To Resident (ex: lower utility
costs)Frequency
Monthly, Quarterly, Semi-Annually, Annually
Sample Preventive Maintenance Report
Fair Housing & Uniform Residential LTA
Fair Housing Amendments Act laws provide a critical way to deter and counteract housing discrimination (ex: family composition, discrimination based on race, religion, steering, etc.)
VRLTA Landlord Tenant Act governs the rental of residential property. It is composed primarily of state statutory and common law which spells out common rights and obligations of the landlord and resident.
Section 504 Rehabilitation Act of 1973 & ADA of 1990
Need For Continuing Education
Who Needs It?Property Management StaffMaintenance Staff
Evaluating TheManagement Agent
General Experience Review Policies & Procedures Manual Property Management Staff
Experience & Training Opportunities Review Sample Reports Visit Other Portfolio Properties Talk With Other Clients
Management Agent’s Hats
Housing provider
Fair housing advocate
Social worker
Marketing specialist
Accountant
Collection agent
Maintenance Technician
Community organizer
Compliance officer
Leasing agent
IRS SECTION 42
FEDERAL LOW INCOME HOUSINGTAX CREDIT PROGRAM COMPLIANCE OVERVIEW
Low Income Housing Tax Credit Program Compliance
Minimum Set Asides LIHTC Program Compliance Period Record Retention Rent & Income Limits Determining Eligibility Sample Resident File Annual Recertification Process Subsidy Layering Restrictions LIHTC Compliance Training Options
Minimum Set Asides
Federal Minimum Set Aside Requirements
20% of units @ 50% of AMI 40% of units @ 60% of AMI
Stricter Occupancy Requirements Subject To Owner’s Contract With
State Agency (Ex: 100% @ 60%)
LIHTC Program Compliance Period
Time Frame For Complying With LIHTC Program Requirements
Minimum Term Of 15 Years Can Be Extended Beyond 15 Years
Record Retention
First Year Original Resident Files Kept For 6 Years Beyond Compliance Period
Future Files Retained For 6 Years After Move-Out Date
Rent & Income Limits
Must Adhere To LIHTC Program Rent & Income Limits
Hold Harmless/HERA Income Limits
Available For Each Virginia Locality At
www.vhda.com.
Sample Rent Table
Sample Income Table
Utility Allowances
6 available options in Virginia HUD rent schedule RD approved budget PHA(Public Housing Authority) Utility Company HUD Utility Model Engineer
Utility Allowances
Evaluated annually 90 days to implement, after publish
date Utility allowance figure is subtracted
from the gross rent
Determining Eligibility
Eligibility Checklist Property Application Student Certification form Income & Asset Verification Forms Tenant Income Certification (TIC) Lease Agreement Tax Credit Lease Addendum
Eligibility Checklist
Sample Verification Form
Tenant Income Certification (TIC) Form
Sample Resident File
Rental Application & Application Addendum
Lease & Lease Addendum Privacy Act Letter Tenant Income Certification Income/Asset Verification Forms Other Property Required Forms
Annual Recertification Process
Must Be Completed Within 12 Months After Initial Income Certification
Begin Recertification Process 120 Days Before Lease Anniversary Date
Subsidy Layering Restrictions
Other Program Restrictions
Project Based Section 8HOME Program FundingBond FinancingRural Development
Must Meet All Program Regulations
LIHTC Report of Noncompliance
LIHTC Compliance Training Options
A.J. Johnson Consulting – 757.599.3964 Elizabeth Moreland Consulting – 1.800.644.0390 TheoPro Compliance & Consulting Inc.
1.877.783.1133 Quadel Consulting – 1.800.987.2581 Spectrum Consulting – 207.767.8000 National Center For Housing Mgt. – 1.800.368.5625
Helpful Resources
VHDA – www.vhda.com
Institute of Real Estate Management – www.irem.org
Mid-Atlantic AHMA – www.midatlanticahma.org
Novogradic – www.novogradic.com