2013 annual owner’s compliance report (aocr) webinar

2013 Annual Owner’s

Compliance Report (AOCR) Webinar

1

Contact Information

Physical Address:TDHCA221 East 11th StreetAustin, Texas 78701

Mailing AddressTDHCAPO Box 13941Austin, Texas 78711-3941

Website: www.tdhca.state.tx.us

Annual Owner’s Compliance Report

Reports available in the Compliance Monitoring and Tracking System (CMTS) first week in January

All Parts due April 30th for reporting data for January 1st – December 31st of 2013

Rule for Reporting requirements moved from 10TAC§10.603 to 10TAC§10.607

Annual Owner’s Compliance Report

This reporting year is for 2013 All answers and information should be

limited to activity that occurred January 1, 2013 to December 31, 2013

Why do we have to complete this report?

All rental program regulations require owners to annual certify compliance For HTC program, see Treasury Regulation

1.42-5 Chapter 2306 of the Texas Government

Code requires TDHCA to report information to the legislature and Governor’s office

REA uses data to underwrite new applications received by TDHCA

Asset Management uses the information to determine which properties are at risk and need additional oversight

Overview

All properties are required to submit the reports Unless your property foreclosed or completed

a Qualified Contract Sale The first report is due the 2nd year

following the award i.e. property awarded HTCs in July of 2012.

First report due 4/30/2014 Training will cover how to complete reports

for properties that have not yet started leasing

Getting Started

Must have a user ID and password to access system and reports

Forms available on website http://www.tdhca.state.tx.us/

Must be signed by General Partner Electronic Compliance Reporting Filing

Agreement Owner’s Designation of Administrator of

Accounts

http://www.tdhca.state.tx.us/

Getting Started

Forms available on the website:This is the same place you access CMTS to login

Getting Started

Owners must request a user ID and password no later than 9/1 of the year following the award.

i.e. property awarded HTCs in July of 2012. The CMTS Filing Agreement & Owner’s Designation of Administrator of Accounts forms must be submitted to the Department no later than 9/1/2013.

This helps in being prepared to submit the AOCR due 4/30/2014 timely

Required in 10TAC§10.607(a)

How to Access the Reports

2 types of usernames are issued A username for the administration

Starts with admThis is the only username that can be

used to access all parts of the ACOR A username for the property manager

Starts with mgrCan only update Part B: Unit Status

Report (USR)


When you log in as the adm, this is what you see:

Will list here all of the properties associated with the adm username


To access the parts of the AOCR:

Click on the Annual Owners Compliance Reports- 2012 link


You will then see this screen:

This is where you can access Parts A, B, C and D

Basics

Use mouse or tab keys to navigate the system

Do not use “back” button Do not have to complete reports in their

entirety in one sitting; just make sure you Save as you go

Select the “submit” button to submit the report.

If there is still a link for the report, the report has not been sent.

Part ACompliance Questions

Part A: Compliance Questions

To access the Compliance Questions, click Start New Report:


The reporting year for this report is 2013. Be sure to limit your responses to

activities that occurred January 1, 2013 to December 31, 2013


YES

If you choose YES, once you SAVE, it will direct you to the next screen to complete the Questionnaire

NO If you choose NO, you will need to provide details explaining why the property was not occupied (ie. 2012 allocation of Housing Tax Credits and construction is not complete); If your property was not occupied, the report ends here!


For guidance on answering questions that were not changed from 2012, please see:

2012 Annual Owner’s Compliance Report (AORC) Training (PPT)

2013 AOCR Cheat Sheet http://www.tdhca.state.tx.us/pmcomp/r

eports.htm

http://www.tdhca.state.tx.us/pmcomp/reports.htm

http://www.tdhca.state.tx.us/pmcomp/reports.htm


Changes made to the Compliance Questionnaire:

Deleted questions about Non-profits and HUBs

Added:Question regarding Affirmative

Marketing for Veterans (#23)HOME specific question as required

by the new HOME Final Rule (#24)


23. Department records indicate that this question is not applicable to the development.

N/A If for # 23 this message appears, it means that, based on a reconciliation of Department records, the property is not required to specifically Affirmatively Market to Veterans


23. Have you Affirmatively Marketed to Veterans as required by the LURA, application or QAP?

YES You are affirmatively marketing to organizations

specializing in assisting veterans Note: this requirement is specific to allocations

made in 2010 (selection criteria) and 2011/2012 (threshold criteria); the provision may not be included in your LURA and Asset Management will be contacting you to amend accordingly

NO Please provide details


If you have HOME funds, you will be required to answer an additional question


24. Is each building and all HOME assisted units in the project suitable for occupancy, taking into account State and local health, safety, and other applicable codes, ordinances, and requirements, and the ongoing property standards established by the TDHCA (the participating jurisdiction) to meet the requirements of §92.251?

YES If all units are suitable for occupancy If any governmental entity (other than TDHCA) inspected the

property and NO deficiencies/violations OR No inspection occurred

NO If any governmental entity (other than TDHCA) inspected the

property and found any deficiencies/violations If any unit(s) are not suitable for occupancy Please provide details

Part A: Contact Information

Changes made to Contact Information: If Post 15 or HTC Exchange, no longer

required to enter Syndicator contact information

No longer required to update the nonprofit and/or HUB contact informationAlthough not required, it is

encouraged that these records are current


You will need to update all contact fields for the Property, Management Company, Syndicator, and Owner


Make sure to review all contact information for the owner, syndicator, management company and property

Including a valid email addressONLY ONE per field

Be sure to update with the contact person you want receiving Department correspondence

You will not be able to submit these reports unless all contact information is completed


If there is not any contact information currently entered for the property, click Start New ReportIf there is existing contact information, to review for accuracy and edits as needed, click Edit or View Before Submission


To edit existing information:

If you need to change existing information, you have to Delete then AddTo add missing information, click Add


To Add information:1. Click Add

2. Enter the prompted information and Submit Query

The Department database will be searched to determine if the record already exists


If the record exists, Assign to the property


If the record does not already exist, Add an Organization to the property


At minimum, must complete the fields in orange; SAVE


Once saved, update remaining information by clicking Add to each relevant field

Part A: Contact Questions

Be sure to review the contact information for all parties and

update as needed. The Department solely relies on

this information and when it is incomplete/incorrect, the right

people don’t get the right information

Part BUnit Status

Report (USR)

Part B: Unit Status Report

This should reflect occupancy as of 12/31/2013

If the property is still under construction, submit blank

Part A no longer requires race/ethnicity information to be reported

The Department will use the race/information from Part B for reporting purposes

No changes made to Part B

To access the Unit Status Report, click Unit Status Report from the main login screen:



Click on Enter Unit Occupancy to start updating the USR:


From the list of Unit #s, select the unit you need to update:


To clear the screen to enter a new household’s information:

Enter the Move Out Date

Then click New Household


To move out a household and just show the unit as vacant:

Enter the Move Out Date

Then click Mark Vacant


Complete all relevant Household Information:

Name: Enter the Household’s last name

Move In Date: Enter the date the household first move into the project

TIC Date: - For new move ins, this is the date the household executed the initial IC

- For annual recertification, this is the date the household executed the annual IC

- For AEC’s, this is the date the household completed the AEC- If the household has completed an annual recertification or

AEC, update to YES

Annual Income: Enter the household’s actual annual income based on the appropriate IC

Tenant Paid Rent: - Enter the amount of tenant rent from the lease - If the household received rental assistance, enter

only their portion

Utility Allowance: Enter the current applicable utility allowance for that unit

Household size: Enter the total number of household membersAssistance/Assistance Payment: Select the type of rental assistance from the drop down box and then enter the amount of the rental assistance

Unit Designation(s): Enter both the income and rent designation for each program applicable to the unitSpecial Needs: Select YES or NO based on if the household has a Special Need; this is not to identify the unit as being equipped


Complete all relevant Household Composition data:

Ethnicity: - Enter the number of household members that are Hispanic/Not Hispanic

- If the household refused to disclose the information, be sure to check the box

Race: - Enter the number of household members that are of the race option listed - If the household refused to disclose the information, be sure to check the box

Other: - Enter the number of household members that are Elderly, Disabled, Disabled & Elderly or Not Disabled or Elderly - If the household refused to disclose the information, be sure to check the box

The total for each section must add up to the total number of household members entered above in the Household Information


Don’t forget to SAVE!

To SAVE and go to the next unit listed, click Save and Next Unit

To SAVE and Exit the input screen, click Save and Exit

If you have a “down unit”, you can also identify that here; click Mark Down


To submit the USR, go back to the Unit Selection Screen and click Property details


At the Property detail screen, click Submit Reports


Choose the report you would like to submit and click Submit:


Enter the date the occupancy data you have entered is through:

Be sure to click Submit to TDHCA

Part CHousing for Persons with Disabilities

Report

Part C: Housing for Persons with Disabilities ReportTo access the Housing for Persons with Disabilities Report, click Start New Report:

Part C: Housing for Persons with Disabilities Report

YES

If you choose YES, once you SAVE, it will direct you to the next screen to complete the Questionnaire

NO If you choose NO, you will need to provide details explaining why the property was not occupied (ie. 2011 allocation of Housing Tax Credits and construction is not complete); If your property was not occupied, the report ends here!


For all the following questions, be sure to

answer in number format (7 vs. seven


Changes to Part C: Only have to complete this report if

there are 20 or more total units

Part DOwner’s Financial

Certification

Part D: Owners Financial Certification

The Purpose of Part D: Financial/Operational Health of

Development

TDHCA Operating Expense Database

NEW! This information is now considered during the Previous Participation Review (PPR) by the Department when new applications for funding are received or an Owner requests approval for ownership transfer

Part D: Changes to 2013 Report

Reserve Account Section


For Exchange Developments Only

For Exchange & TCAP Developments


Operating Reserve Accounts

Special Reserve Accounts


Accurate and Consistent Information


Submit supporting documents through CMTS upload

Who is your assigned TDHCA Asset Manager? Property Detail Screen

TDHCA Website

http://www.tdhca.state.tx.us/asset-management/index.htm





For Exchange Developments Only

Part D Supporting Documentation Rent Roll as of 12/31 Annual Operating/Financial Statements as of 12/31

(income statement, balance sheet, statement of cash flows, profit/loss statement, IRS 990 for Nonprofit Organizations, etc.)

Proof of Property Liability Insurance coverage (declaration page/ACCORD Cert)

Proof of payment of property taxes to local appraisal district

Bank statements as of 12/31 for all required reserve accounts identified in Part D

Part EForm 8703

Part E: Form 8703

What is it? Annual Certification of Residential Rental

Project Only have to complete if you have Tax Exempt

Bonds through the Department

Part I: General Information Part II: Annual Determinations Part III: Issuer and Description of

Bonds Part IV: Certification

Part E: Form 8703

Due to the Internal Revenue Service (IRS) by March 31st after the close of the calendar year for which the certification was made

Submit a copy of the filed form for the proceeding calendar year by April 30th

Part E: Form 8703

Not a report that is entered in CMTS like all other parts

Send the form via email to [email protected]

x.us

mailto:[email protected]


What’s Next?

Department Follow Up


Have all parts of the report

been submitted?


On May 1st, the Department will identify properties that have not submitted all parts of the report

Notice of Noncompliance sent to properties

The Notification will identify which part(s) has not been submitted

This Notice will be sent to the email address for the owner contact, management company contact and property

30 day corrective action period given to submit the missing part(s)

Extensions are not available


After the corrective action period, form(s) 8823 will be sent to IRS reporting all HTC properties that did not submit Part A by April 30, 2014

Failure to submit all parts of the report by April 30, 2014 is noted in the Department’s Compliance Status System Finding: Failure to submit all or parts of the

Annual Owner’s Compliance Report If submitted within the 30 day corrective

action period, the noncompliance will be shown as corrected within the corrective action period


A review of the answers

in Part A


A report is run comparing anticipated answers to the Part A questions to actual answers i.e. The anticipated answer to a

question is “yes” and the submitted response is “no”

If this review suggests that noncompliance has occurred based on the answer, a Notice of Noncompliance will be sent to those owners requesting clarification

30 day response period


If the owner does not respond, 8823s are issued for HTC properties

All non responsive properties are entered in the Department’s Compliance Status System under the finding “Failure to submit all or parts of the Annual Owner’s Compliance Report”


If the owner responds during the 30 day period and clarifies that the question was answered incorrectly; if reasonable, review will be closed with no further action


If owner responds that the property was out of compliance, the file is reviewed to determine if the Department was already aware of the issue. If so, reviewed closed with no further action

If TDHCA was not aware of issue, action taken as appropriate Filing Form 8823 Entering noncompliance in the

Department’s Compliance Status System

Who to Contact with Questions

Type of Issue

Contact Phone

CMTS James Roper 512.936.7751

Part A, B and/or C Content

Stephanie NaquinWendy Quackenbush

512.475.2330512.305.8860

Part D The property’s Asset Manager

See assignments

Part E Virginia Tucker 512.936.7827

All Department email contacts are in the following format:

[email protected]


The End!Thanks for Attending…

2013 annual owner’s compliance report (aocr) webinar

Documents

compliance monitoring

compliance questionsto

reporting data

unit status report usrhow

reporting requirements

property managerstarts

januaryall parts

tracking system cmts