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Compliance Reporting Requirements

CHFA Multifamily Mortgage Program

Overview

The Connecticut Housing Finance Authority (CHFA) offers qualifying developers low-interest mortgage loans to help finance their affordable multifamily housing developments in Connecticut.  Owners and management agents of CHFA-financed multifamily properties must comply with operating rules and restrictions that are designed to ensure the long-term provision of high quality, affordable housing.  Recipients of CHFA Multifamily Mortgage loans are required to regularly provide CHFA with documentation that demonstrates their compliance with specific financial, insurance, property, tenant and lease requirements.   

CHFA Multifamily Mortgage loans are subject to the Regulatory Agreement and all other Loan Documents.  

Follow the links below to learn more about the compliance rules associated with CHFA Multifamily Mortgages. 

 

 

Audited Annual Financial Statement Reporting Requirements

 

The Connecticut Housing Finance Authority (CHFA) requires developments with CHFA Multifamily Mortgage financing to submit an Audited Annual Financial Statement (AFS), prepared by a Certified Public Accountant, at the end of each fiscal year.  The AFS must be prepared in accordance with Generally Accepted Accounting Principles, and HUD Multifamily Financial Assessment guidelines.

 

  • What is included in the Audited Annual Financial Statement?

    The Audited Annual Financial Statement includes the following documents:  

    • Balance Sheet
    • Income Statement
    • Statement of Cash Flows
    • Statement of Owner’s Equity
    • Notes to the Financial Statements
    • Signed Independent Auditor’s Reports (Compliance, Internal Controls, Federal & State Programs, etc.)
    • Schedule of Findings
    • Supplemental Reports (see below)
    • Signed Mortgagor and Management Agent Certification

     

  • When is the Audited Annual Financial Statement due?

    Generally, Annual Financial Statements (AFS) are due within 60 days after the close of a development’s fiscal year.  HUD-Insured developments are granted an additional thirty days, for a total of ninety days.  Management Agents should review their developments’ Regulatory Agreements to determine specific due dates.  Extensions of the deadline may be requested in writing and approved by a development’s CHFA Asset Manager.  

    Please note:  Developments financed under the Assisted Living and Supportive Housing programs may have different AFS due dates.  

    (See, REAC reporting requirements for HUD-Insured developments.)

     

  • In what format should the Audited Annual Financial Statement be sent?

    The Audited Annual Financial Statement must be emailed in PDF format, along with the signed mortgage & management agent certification.  The CHFA-Annual Financial Statement Workbook must be emailed in Excel format which contains an input sheet and three (3) supplemental forms. The workbook must be submitted in the exact form in which they were created by CHFA. 

    (See below for the CHFA Annual Financial Statement Workbook and corresponding instructions.)

    All electronic submissions should be sent to afs@chfa.org  (Please include the name of your development in the subject line.)

      

  • To whom should questions regarding Audited Annual Financial Statements be directed to?
    Name:     Thomas Bourque
    Phone:     860 571-4272
    Email:thomas.bourque@chfa.org

 

Annual Financial Statement DocumentsFound: 3  matches.  
FileSizeType
AFS FAQs
This is a list of Frequently Asked Questions about CHFA's Audited Annual Financial Statement Reporting Requirements.
357Kpdf

CHFA AFS Instructions Beginning With Fiscal Year-End 12/31/2014
These instructions explain the use of the new CHFA Annual Financial Statement Workbook (Rev. 2014) which includes a Financial Input worksheet which links data to the other forms in the workbook.
72Kpdf

Supplemental Files
This excel workbook contains a Financial Input worksheet which feeds the required Supplemental Forms HM 6-50, HM 6-51 and HM 6-52. When used by a DOH Congregate development, the Input sheet will also feed a DOH Congregate Income and Expense worksheet.
204Kxlsm
FileSizeType
Found: 3  matches.  

 


 

Annual Budget Reporting Requirements

 

The Connecticut Housing Finance Authority (CHFA) requires developments financed with Multifamily Mortgage loans to submit a Projected Annual Operating Budget.  The annual budget forecasts income, operating expenses as well as capital improvements for the housing development, so that the development and CHFA can project the development’s fiscal performance for the coming year and determine the necessity of rent increases.

 

  • What should be included in Projected Annual Operating Budget?

    In general, Projected Annual Operating Budgets include the following information: 

    • Projected Annual Operating Budget (CHFA Form HM 6-12)
    • Explanation of revenue sources
    • Explanation of expenses
    • List of resident charges that are not rent
    • Capital Improvement Schedule (CHFA Form HM 6-12(d))

     

    Please note: A Projected Annual Operating Budget must be zero-based and represent a realistic estimate, not an assumed percentage increase based on a previous year's actual budget.  Budgets are required to include rents, other revenue sources, operating expenses, and required reserves.     

    When a Projected Annual Operating Budget incorporates a rent increase request, the following additional information is required:

    • Letter requesting a rent increase
    • Current and proposed rent schedule by unit type
    • Market Survey

 

  • When is the Projected Annual Operating Budget due?  

    The Projected Annual Operating Budget is due at least thirty days prior to a development’s new fiscal year.   

    Please note that developments financed under the Assisted Living and Supportive Housing programs may have different due dates for their Projected Operating Budget.  

     

  • In what format should the Projected Annual Operating Budget be submitted? 

     The Projected Annual Operating Budget must be submitted in excel format along with a pdf copy of the  signed and dated Projected Annual Operating Budget, CHFA form HM 6-12.  

     

  • Where should the Projected Annual Operating Budget be sent?

    The Projected Annual Operating Budget must be uploaded via the electronic portal (click here for the portal link.

 

Annual Operating Budget DocumentsFound: 2  matches.  
FileSizeType
CHFA Multifamily Housing Financial Reporting - Budgets, Interims and Capital Improvement Schedule
This workbook is used by developments with CHFA Multifamily Mortgages to project their Annual Operating Budgets and their Capital Improvements for the coming year. HM 6-12, HM 6-12(a) and HM 6-12(d) are required for the budget submission. HM 6-10 is required for Interim Statement submission.
11400Kxlsm

CHFA - Marketing Grid Form - Word Format
This Word document enables developers to track their competitor’s rents and set rents for their property at a level that will maximize the development’s net operating income.
118Kdoc
FileSizeType
Found: 2  matches.  

 


 

Interim Statement of Operations Reporting Requirements

 

For new developments or developments that are CHFA-owned or troubled properties, the Connecticut Housing Finance Authority (CHFA) may require the submission of an Interim Statement of Operations Report on a quarterly basis using the accrual method of accounting.

 

  • What should be included in an Interim Statement of Operations Report?

    The Interim Statement of Operations Report should include spreadsheet HM 6-10 of the excel workbook CHFA – HM 6-10, 6-12, 6-12(a) & 6-12(d) – Multifamily Housing Financial Reporting Forms.   

    The Interim Statement of Operations Report must be submitted along with supplemental schedules that report on the following information:   

    • Cash Disbursement Schedule
    • Aged Accounts Receivable
    • Aged Accounts Payables
    • Budget-to-Date versus Actual-to-Date variances over 10% 

 

  • When is the Interim Statement of Operations Report due?

    Interim Statement of Operations Reports are submitted to CHFA on a quarterly or monthly basis, according to the frequency required by the Asset Manager.   

    Please note:  Developments financed under the Assisted Living and Supportive Housing programs may have different due dates for their Interim Statement of Operations Report.

     

  • In what format should the Interim Statement of Operations Report be submitted?

    Developments may submit an electronic or paper copy of the Interim Statement of Operations Report and supplemental schedules. 

     

  • Where should the Interim Statement of Operations Report be sent?

    The Interim Statement of Operations Report may be electronically uploaded or sent by US Mail to a development’s Asset Manager:

    Mailing Address:
    Connecticut Housing Finance Authority
    Attn: [Your Asset Manager]
    999 West Street
    Rocky Hill, Connecticut 06067

     

 

Interim Statement of Operations Report DocumentsFound: 1  matches.  
FileSizeType
CHFA Multifamily Housing Financial Reporting - Budgets, Interims and Capital Improvement Schedule
This workbook is used by developments with CHFA Multifamily Mortgages to project their Annual Operating Budgets and their Capital Improvements for the coming year. HM 6-12, HM 6-12(a) and HM 6-12(d) are required for the budget submission. HM 6-10 is required for Interim Statement submission.
11400Kxlsm
FileSizeType
Found: 1  matches.  

 

Replacement Reserve Requirements

 

The Connecticut Housing Finance Authority (CHFA) requires CHFA-financed developments to maintain a minimum balance in a Reserve for Replacement Escrow.  Usually, this minimum is $1,500 per unit for family developments; $1,000 per unit for elderly developments; and $500 per unit for Small Unit Rental Properties and Cooperatives.

Please note:  HUD-insured developments must follow the HUD policies and procedures pertaining to minimum balances.

Please see the Reserve for Replacement Escrow for CHFA-financed properties for info on reimbursement procedures.


 

Insurance Requirements

 

The Connecticut Housing Finance Authority (CHFA) requires developments in which CHFA has an interest to maintain appropriate levels of insurance.  The types and levels vary depending on whether or not there is construction or renovations occurring at the development and/or if the development is occupied.

After reviewing the document listed below, direct any additional questions and comments regarding CHFA’s Insurance Requirements to:

Name:     Robin Salafia
Phone:     860 571-4345
Email:robin.salafia@chfa.org

Mailing Address:
Connecticut Housing Finance Authority
Attn: Robin Salafia
999 West Street
Rocky Hill, Connecticut 06067

Email:robin.salafia@chfa.org

Mailing Address:
Connecticut Housing Finance Authority - A.T.I.M.A.
Attn: Robin Salafia
999 West Street
Rocky Hill, Connecticut 06067

 

Insurance DocumentsFound: 1  matches.  
FileSizeType
CHFA Multifamily Insurance Requirements
This document outlines CHFA's insurance requirements for multifamily properties.
49Kpdf
FileSizeType
Found: 1  matches.  

 

Tenant Profile Submission Requirement

 

CHFA reports on the demographics of affordable housing developments to the Connecticut Legislature each year to demonstrate the effectiveness of state-financed affordable housing programs statewide.  The Tenant Profile Submission (TPS) represents the means by which CHFA collects this information.

Please note:  Assisted Living and Section 8 developments for which CHFA is the Contract Administrator are not required to submit TPS.

 

  • What should be included in Tenant Profile Submissions?

    Tenant Profile Submissions should include all demographic data related to the tenant occupants of a development as of September 30th of the current year. The type of data required in a TPS includes income, family size, ethnic affiliation, head-of-household status and disability status, among others.

 

  • When are Tenant Profile Submissions due?

    The Tenant Profile Submission report is required annually. CHFA notifies developments of the due date each year.

     

  • In what format must Tenant Profile Submission Reports be submitted?

    Tenant Profile Submissions must be saved in the Microsoft Excel spreadsheet formatted by CHFA for each development.

     

  • Where should Tenant Profile Submission Reports be sent?

    Tenant Profile Submissions must be submitted through a SharePoint site.

 

TPS DocumentsFound: 1  matches.  
FileSizeType
Setting up your Microsoft Account for TPS/Waiting List Survey
These are the instructions for setting up your Microsoft Account for TPS/Waiting List Survey.
156Kpdf
FileSizeType
Found: 1  matches.  

 

Management Plans

 

The Connecticut Housing Finance Authority (CHFA) requires Multifamily Mortgage loan borrowers to create and maintain a Management Plan, a Resident Selection Plan and a Marketing Plan for their developments.  CHFA requires owners and management agents to produce these plans when developments first receive CHFA loan approvals in order to ensure the equal and fair treatment of anyone applying to reside in a CHFA-financed development.  

In addition, these plans must be updated when policies are renewed or adopted and/or when a new management agent is contracted.     

Please note:  HUD subsidized Resident Selection Plans must meet all the requirements outlined in the HUD Handbook on Occupancy Requirements of Subsidized Multifamily Housing Programs.

Management Plan DocumentsFound: 3  matches.  
FileSizeType
CHFA – Management Plan Outline
These instructions provide an outline of the Management Plan for implementing and meeting the affordable housing objectives of a housing development.
60Kdoc

CHFA - Marketing Plan Outline
These instructions provide an outline of the Marketing Plan for marketing and outreach activities of a housing development.
44Kdoc

CHFA - Resident Selection Plan Outline
These instructions provide an outline of the Resident Selection Plan for selecting eligible and responsible residents for a housing development.
49Kdoc
FileSizeType
Found: 3  matches.  

 

Marketing Requirements

 

CHFA requires new Multifamily Mortgage loan borrowers to submit a Weekly Marketing Report while leasing up their developments.    

Marketing materials, such as newspaper and Internet advertisements, are required to contain the following language:  

“Financed by Connecticut Housing Finance Authority, Equal Opportunity Housing.”     

Marketing DocumentsFound: 2  matches.  
FileSizeType
CHFA/DOH Cosolidated Application Training
This PowerPoint presentation offers training on the 2014 CHFA/DOH Consolidated Application.
1148Kpptx

CHFA – HM 9-30 – Weekly Marketing Report
The form is used to monitor the occupancy rate as well as demographic information of tenants and applicants of a CHFA-financed development during lease up.
6Kpdf
FileSizeType
Found: 2  matches.  

 

Lease Requirements

 

The Connecticut Housing Finance Authority (CHFA) requires that leases pertaining to properties with Multifamily Mortgage loans comply with all relevant state and federal statutes and fair housing laws.  Borrowers are required to submit a letter from their attorney attesting to the legality and enforceability of their lease.  

HUD subsidized developments must use the form of lease prescribed by HUD.  CHFA further requires that developments with market rate units and/or developments that receive Section 8 housing assistance payments include specific lease amendments.  (See documents listed below.) 

Lease DocumentsFound: 2  matches.  
FileSizeType
CHFA - HM 8-15 - Amendment to Subsidized Programs
If CHFA is your Contract Administrator (CA) you must attach an executed copy of this amendment to each HUD model lease.
44Kdoc

CHFA – HM 9-15 – Amendment to Lease
This is a lease amendment required for developments financed with CHFA mortgage loans if CHFA is not the Contract Administrator for the development.
7Kpdf
FileSizeType
Found: 2  matches.  

 

Questions? Contact CHFA.

 

For additional assistance, developments subject to the Affordable Housing Program requirements should contact their Asset Manager directly.   

Mailing Address:
Connecticut Housing Finance Authority
Attn: [Your Asset Manager]
999 West Street
Rocky Hill, Connecticut 06067