Compliance Reporting Requirements

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, while a paper copy and certifications signed by the owner and management agent must be also submitted.  The four CHFA supplemental forms in Excel spreadsheet format must be submitted electronically in the exact format in which they were created.  

  (See, CHFA - HM 6-50 thru 6-53 Workbook, for an Excel workbook of all four supplemental forms.)

   

• Where should the Audited Annual Financial Statement be sent?

  The Audited Annual Financial Statement, along with signed certifications, may be sent by US Mail to the following address: 

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

  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 Statement be directed?

  Technical questions pertaining to the Annual Financial Statement forms should be directed to:

  Name:     Claudette Mertens Phone:     860 571-4210 Email: claudette.mertens@chfa.org Mailing Address: Connecticut Housing Finance Authority Attn: Claudette Mertens 999 West Street Rocky Hill, Connecticut 06067

  Accounting questions should be directed to:

  Name:     John Peterson Phone:     860 571-4243 Email: john.peterson@chfa.org Mailing Address: Connecticut Housing Finance Authority Attn: John Peterson 999 West Street Rocky Hill, Connecticut 06067

  Annual Financial Statement Documents Found: 8  matches.   File Size Type Guidelines for Completing Annual Financial Statement In response to the newly released 2009 HUD Audit guidelines, this memo provides guidance for completing Audited Annual Financial Statements. 26K pdf CHFA - HM 6-50 - Statement of Operations This Supplemental Report required is used to report revenue and expenses by account numbers for CHFA-financed multifamily housing developments. 66K xls CHFA - HM 6-51 - Computation of Surplus Cash, Distribution and Residual Receipts This Supplemental Report is used to compute annual surplus cash, distribution, residual receipts and additional interest of a CHFA-financed multifamily housing development; it replaces HUD form 93486. 36K xls CHFA - HM 6-53 - Schedule of Accounts Payable by Age This Supplemental Report is used to report the fiscal year-end Schedule of Accounts Payable by Age for CHFA-financed multifamily housing developments. 34K xls CHFA - HM 6-52 - Computation of Net Operating Income This Supplemental Report is used to compute net operating income of a CHFA-financed multifamily housing development and assists CPAs in identifying transactions that CHFA requires as adjustments to Net Operating Income. 703K xls CHFA - HM 6-52 - Instructions These instructions explain the Computation of Net Operating Income form, HM 6-52. 12K pdf CHFA - HM 6-50 thru 6-53 Workbook This Excel workbook combines CHFA forms HM 6-50, 6-51, 6-52 and 6-53 for CHFA-financed multifamily housing developments. 767K xls CHFA - HM 6-51 - Instructions These instructions explain the Computation of Surplus Cash, Distributions and Residual Receipts form, HM 6-51. 33K pdf File Size Type Found: 8  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: 

  • Schedule of projected annual income and expenses by month
  • Explanation of revenue sources
  • Explanation of expenses
  • Market Survey (except for Section 8 and 236 developments)
  • Personnel List with position, salary & hours worked
  • List of Administrative charges
  • List of resident charges that are not rent
  • Schedule of Replacement Reserve releases and capital improvements
  • Capital Needs Summary

   

  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

• 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, along with required forms and schedules, may be submitted in paper or electronic format.   

   

• Where should the Projected Annual Operating Budget be sent?

  The Projected Annual Operating Budget may be emailed 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

Annual Operating Budget Documents Found: 2  matches.   File Size Type CHFA - HM 6-10, 6-12, 6-12a - Multifamily Housing Financial Reporting Forms This spreadsheet is used by developments with CHFA Multifamily Mortgages to project their Projected Annual Operating Budgets for the coming year; HM 6-12 and HM 6-12(a) are required for the budget submission. HM 6-10 is required for Interim Statement submission. 490K xls 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. 118K doc File Size Type 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 6-12, 6-12(a) & 6-10 – 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 emailed 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 Documents Found: 1  matches.   File Size Type CHFA - HM 6-10, 6-12, 6-12a - Multifamily Housing Financial Reporting Forms This spreadsheet is used by developments with CHFA Multifamily Mortgages to project their Projected Annual Operating Budgets for the coming year; HM 6-12 and HM 6-12(a) are required for the budget submission. HM 6-10 is required for Interim Statement submission. 490K xls File Size Type 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 CHFA-financed properties to maintain appropriate levels of insurance.  The types and levels of required coverage vary by development, depending upon the nature of the mortgage financing.  CHFA has different insurance requirements for Group Homes, developments under construction and acquired developments.    

After reviewing the documents listed below, direct any additional questions and comments regarding CHFA-funded affordable rental housing development insurance requirements to:

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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:  Section 8 and Assisted Living 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 August 31st of the current year. The type of data required in a TPS includes income, family size, age, 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 may be emailed to tenant.profile@chfa.org which is the preferred method.

  Tenant Profile Submissions may also be saved to a CD or diskette and mailed to CHFA:

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

   

TPS Documents Found: 1  matches.   File Size Type Tenant Profile Submission Instructions These instructions set forth the submission requirements for the input of tenant information required on the Tenant Profile Submission Reporting Form. 49K doc File Size Type 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 Documents Found: 3  matches.   File Size Type 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. 60K doc CHFA - Marketing Plan Outline These instructions provide an outline of the Marketing Plan for marketing and outreach activities of a housing development. 44K doc 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. 49K doc File Size Type 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 Documents Found: 1  matches.   File Size Type 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. 6K pdf File Size Type Found: 1  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 Documents Found: 2  matches.   File Size Type CHFA - HM 8-15 - Amendment to Model Lease for Subsidized Programs This is a model lease amendment required for developments financed with CHFA mortgage loans that are required to use the HUD model lease. 10K pdf CHFA – HM 9-15 – Amendment to Lease This is a model lease amendment required for developments financed with CHFA mortgage loans that are not required to use the HUD model lease. 7K pdf File Size Type 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