BUDGET REQUIREMENTS

CHFA Form HM 6-12 (Rev. 10/99), "Projected Annual Operating Budget", must be submitted to the Owner at least sixty (60) days prior to the beginning of a new fiscal year, and to CHFA at least thirty (30) days before the new fiscal year begins. The budget must be zero-based and a realistic estimate (not a percentage assumption-i.e., 3% increase based on previous year's actual dollars) addressing rents, other revenues, operating expenses, and required reserves. All CHFA's Multifamily forms and/or instructions may be accessed on our website.

In addition to providing the budget on the aforementioned form, CHFA requires the submission of the following supporting documentation:

· CHFA Form HM 6-12(a), "Projected Annual Operating Budget
   Spread Format", distributing projected annual income and
   expenses over twelve (12) months. Specifically, this
   schedule should show annual income and expenses in the
   months they are expected to be incurred.
· A current Market Survey that defines the market and
   contains detailed information on at least three (3)
   comparable and competing properties. Section 8 and 236
   developments are not required to complete Market
   Surveys.
· A written rent increase request that includes a current and
   proposed rent schedule by unit type. NOTE: Rent increase
   requests will be considered once a year, at the time of
   budget preparation. When necessary, proposed rent
   increases should be built into the budget. Increases must be
   supported by the above mentioned Market Survey and
   warranted by projected operating expenses which are
   reasonable and necessary to the operation of the
   development. Section 8 and 236 developments are not
   required to submit written requests to CHFA for rent
   increases. Current rent schedules are required.

Budget Requirements contd.