Escrow Reserves
Reserve for
Replacement Escrow for CHFA-financed Properties
Overview
The Connecticut Housing Finance Authority (CHFA) oversees
housing developments that were financed from CHFA funding
sources. Owners of housing developments with CHFA
Multifamily Mortgages or other CHFA-administered financing
must follow CHFA’s procedures for obtaining reimbursements
from their Reserve for Replacement Escrows. In general,
withdrawals are subject to CHFA approval and must relate to
eligible expenditures for capital improvements or repairs.
Follow the links below for more information on the
reimbursement procedures for Reserve for Replacement
Escrows.
|
|
Who can apply to utilize Reserve Escrow funds?
CHFA-financed housing developments that have been
occupied for at least five years are eligible to apply for
reimbursements from their Reserve Escrows. HUD-insured
developments are required to follow HUD policies and
procedures pertaining to escrow disbursements.
How do you apply to utilize
Reserve Escrow funds?
CHFA requires Owners and Management Agents to submit a
request to their Asset Manager to withdraw funds from their
development’s CHFA-held reserve escrows. Substantial
advances require pre-approval.
- Pre-approval is required for substantial
withdrawals
Owners and Management Agents must obtain pre-approval
for an escrow withdrawal for a purchase or contract that exceeds $5,000. Requests
for pre-approval are submitted on
CHFA form HM 6-21 –
Replacement Reserve Pre-Approval/Approval, as a cover sheet, and must
be accompanied by the following supporting
documentation:
-
Three comparable quotations from third-party contractors
-
A statement of need
- A detailed description of work needed to be performed
- An anticipated time schedule for completion
- Owner/Agent Signature
Requests for pre-approval are submitted by fax, email
or by US Mail to a development’s Asset Manager.
- A formal request is required before CHFA
releases funds from escrow.
Owners and Management Agents must submit a request to
release funds from their development’s escrow reserves,
regardless of the sum being requested. These requests
are submitted on form CHFA – HM-6-24 – Request to Release
Escrow. Developments are limited to one withdrawal per
quarter from their escrows in a calendar year. CHFA may
deny or reduce a request if the funds in escrow are
insufficient.
Requests to release escrow funds are submitted by fax,
email or by US Mail to CHFA's Finance Department.
(See, CHFA
Reserve for Replacement Escrow Policy, for
more details on the request for reimbursement process.)
What improvements and repairs are eligible for an escrow
disbursement?
Generally, a development is allowed to withdraw funds for
expenditures related to non-routine major repairs or
replacements. See form
CHFA form HM 6-22 – Replacement
Reserve Descriptive Codes for a list of eligible
expenditures.
CHFA has the discretion to make exceptions to this
general rule on a case by case basis.
What else should you know about Reserve Escrow funds?
The following additional considerations apply to Reserve
Escrow funds.
- A capital needs assessment or study may be
required.
To assess the long-term capital needs of a development,
CHFA may require the owner to commission a capital needs
assessment from a qualified independent inspection firm,
which is payable from a development’s operating budget.
- HUD approval may be required.
HUD-insured developments must obtain pre-approval from
HUD for any escrow reimbursements. However, CHFA
approval is also required. If CHFA is your Contract Administrator,
CHFA verifies all work and expenditures and notifies HUD
of any discrepancies.
Questions? Contact CHFA.
Housing developments with questions about Reserve for
Replacement Escrow reimbursements should contact their
Asset
Manager directly.
Mailing Address:
Connecticut Housing Finance Authority
Attn: [Your Asset Manager]
999 West Street
Rocky Hill, Connecticut 06067 |
|
|
|
Additional Information
The following documents are related to Reserve Escrow funds
| Related Documents |
Found: 6
matches
Displaying:
1
- 6 |
|
 |
| File | Size | Type | Capital Improvement Guide
This document augments CHFA Standards of Design and Construction - 2011, and includes suggested related issues and conditions to be examined when planning various capital improvement/replacement/repair projects financed in 2011 through CHFA. | 265K | pdf |
| CHFA Reserve for Replacement Escrow Policy
This summary outlines the approval process by which a development obtains authorization from CHFA for a disbursement from their reserve for replacement escrow account. It also details the disbursement request process. | 33K | pdf |
| CHFA/SHP Replacement Reserve Descriptive Codes
This list outlines the items and codes for items typically considered eligible for reimbursement from the Replacement Reserve Escrow Account for use with CHFA Form 6-24 "Request to Release Replacement Reserves Escrow Funds". NOTE: This form is used for both the CHFA and State Housing Portfolios. | 12K | pdf |
| CHFA/SHP - HM6-30 - Estimated Useful Life
This list outlines the estimated useful life in years and the replacement year minimum for replacement reserve items. | 25K | pdf |
| CHFA/SHP - HM6-21 - Replacement Reserve Pre-Approval/Approval
This form is used by a development to obtain pre-approval from CHFA in order to commence work or purchase items intended to be reimbursed from the development's reserve for replacement escrow account. NOTE: This form is used for both the CHFA and State Housing Portfolios. | 45K | xls |
| CHFA Form HM6-24 - Request to Release Replacement Reserve Escrow Funds
This chart is used to itemize the work performed by vendor and location. It is included in the package submitted to CHFA when requesting a disbursement from a development’s reserve for replacement escrow account. | 80K | xls | | File | Size | Type |
|
|
Found: 6
matches
Displaying:
1
- 6 | |
|