Appendix 5.xlsx

Summary

Property / Site Manager's Name Since: (Mo/Yr)

Name / Title Date Name / Title Date

Asset Manager Supervisor - Rental Compliance

Development's Description:

Non-IHDA/HUD Subsidies

Term of Subsidy Contract(s)

Addt'l IHDA Program Units

Unit Composition

Additional Addresses

Number and Type of Bldg.

Amenities

Have all findings from prior management/desk/tenant file reviews been resolved? YES

NO

N/A

Comments to Findings/Management Review Questions:

Questionnaire

Part A: Maintenance and Security

a. Are grounds and landscaping in acceptable condition?

f. Are all outdoor amenities in acceptable condition?

i. Which type of inspection was completed?

j. Capital improvements completed and/or planned for the current year?

1. General Physical Condition A C

2. Work Scheduling

2. Work Scheduling A C

3. Preventive Maintenance

3. Preventive Maintenance A C

4. Unit Inspections

a. For occupied units:

1) how often are units inspected?

2) are decent, safe & sanitary inspection forms used?

3) are the forms signed & dated by management & the tenant?

4) are units redecorated on a regular basis?

5) is there a written schedule for the inspections and redecorating?

c. For vacant units:

1) are move-in and move-out inspection forms used?

2) are the forms signed & dated by management & the tenant?

4. Unit Inspections A C

5. Vacant Unit Preparation

1) lack of funds?

2) insufficient supply of parts maintained at development site?

3) use of contractor instead of on-site staff, or vice versa?

5. Vacant Unit Preparation A C

6. Equipment and Inventory Controls

a. Is maintenance work area and storage space adequate?

b. Are equipment, tools, and supplies adequate to perform maintenance tasks?

d. Is a copy of the development's as-built drawings on-site?

6. Equipment and Supply Practices A C

7. Procurement and Supply Practices

b. Are copies of maintenance and/or service contracts available for review?

Elevator $

Heating and A/C

Fire/sprinkler system

Plumbing

Security

Trash collection

Exterminating

Landscaping

Apartment cleaning

Other

3) pursued corrections needed?

7. Procurement and Supply Practices A C

8. Security Program

a. Is exterior lighting adequate for protection and visual security?

b. Is the development free of major security problems?

Break-ins Personal assault

Vandalism Other Auto theft

c. Check type(s) of security service/equipment available

Tenant patrol Motion sensors TV monitor

Paid car patrol Paid on-site guard Security cameras

Police Department car patrols in excess of normal for area

Other

d. Is type and level of security service appropriate for this development?

e. Review of police reports for development address:

Violent crime arrests

Drug activity

Other

8. Security Program A C

9. Energy Conservation

a. Has management attempted to reduce energy consumption?

9. Energy Conservation A C

I. Maintenance and Security Rating

Superior Above Average Satisfactory

Below Average Unsatisfactory

Part B: Financial Management

g. Are there adequate controls over cash/receipts accepted?

Prenumbered rent receipts Safe

Bank collections Lock box

Check scanner Online / resident portal / ACH

Indicate positions:

10. Accounting and Bookkeeping A C

11. Submission of Reports

1) Annual audited financial statement

Date last report was due / /

Date last report received / /

2) Annual operating budget Date received

11. Submission of Reports A C

12. Budget Management

a. Is an operating budget prepared annually and is it approved by the owner?

12. Budget Management A C

13. Financial Compliance

a. Has owner corrected all findings on IHDA financial submission?

20 DCR

20 DCR

20 DCR

Cash $ Accounts receivable $

Accounts payable $

13. Financial Compliance A C

14. Rent Schedule Compliance

Identify any discrepancies below:

Rent Used Approved/Maximum Rent Rent Used Approved/Maximum Rent

c. MOD-REHAB/HOME/NHTF ONLY - Was a rent adjustment request received?

d. Date of last rent adjustment:

f. Was the annual utility allowance analysis submitted?

14. Rent Schedule Compliance A C

Late charge of $ on day.

Eviction procedures commence on day.

Referred to collection agent on day.

b. Does rent collection policy appear to be uniformly applied?

15. Rental Collection Practices A C

16. Accounts Receivable / Payable

If no, what is the percentage for: year % year %

d. Are bills paid in sufficient time to avoid late penalties?

16. Accounts Receivable/Payable A C

17. Reserves and Escrows a.

17. Reserves and Escrows A C

II. Financial Management Rating

Superior Above Average Satisfactory

Below Average Unsatisfactory

Part C: Leasing and Occupancy

b. Does management determine program eligibility per TSP?

Previous landlord

Employer/source of income

Social Security Numbers

Citizenship status

Credit bureau/background check

Sex offender

List other requirements not listed above:

e. Is rental staff familiar with AFHMP?

f. Does the site signage have logos?

g. Is the EHO poster displayed in offices and model units?

2.) was it the appropriate size?

White %

Black/African American %

American Indian/Alaska Native %

Asian %

Native Hawaiian/Pacific Islander %

Other %

Not Hispanic or Latino %

o. What staff positions are/will be responsible for affirmative marketing?

1) Is the explanation written in accordance with the TSP?

2) Was the reason for denial in accordance with the TSP?

3) Did the rejection letter provide the applicant the right to appeal?

At what point is the orientation done?

Development rules Maintenance request procedures

Lease terms Explanation of appliances

Grievance procedures Subsidy policies and rules

Rent payment procedures Energy conservation

Security deposit and charge backs

s. Is the unit jointly inspected prior to occupancy by staff and new tenant?

v. How many units are accessible?

w. FOR HOME, NHTF, & MOD REHAB ONLY

If Yes, answer Question 2.; If No skip to Question 3.

If Yes, provide the person's name and telephone number below.

Name:

Telephone Number:

18. Tenant Selection and Orientation A C

19. Vacancy, Turnover and Market Conditions

a. On the day of the site visit:

b. Is the vacancy rate satisfactory and not excessive?

c. Do any of the following factors contribute to vacancy problems?

Security problem Poor maintenance

Non-competitive amenities Rents too high

Inadequate marketing Location

Development reputation Lack of demand

Bedroom mix/size ( bdrm hard to rent)

Tenant/management relations Other

e. Acceptable written move-out procedures?

g. Do development staff and new tenant jointly inspect unit prior to move out?

Date update letter was sent to applicant

Was wait list purged? When?

How many are currently on wait list?

Is the wait list currently open closed

Does the wait list include all required elements?

Were the applicants selected in proper order from the waiting list?

i. Is surrounding neighborhood market prosperous, average, or depressed?

j. Are surrounding neighborhood conditions improving, stable, or declining?

k. Are the market conditions affecting occupancy?

m. Is there saturation of affordable housing?

19. Vacancy and Turnover A C

b. Are house rules in compliance with program requirements?

c. Has the development implemented a pet or assistance animal policy?

d. Has the pet or assistance animal policy been incorporated into the lease?

20. Leases and Deposits A C

21. Enterprise Income Verification (EIV)

FOR MOD-REHAB ONLY a-g

No Income Report

Failed EIV Pre-screening Report

Failed Verification Report

Existing Tenant Search

Multiple Subsidy Report

Deceased Tenant Report

21. Enterprise Income Verification A C

22. Eviction / Termination of Assistance Procedures

a. Does management have a written policy for handling evictions? Source?

1) Number of evictions completed during last 6 months .

2) Average cost per eviction $ .

attorney on call

f. Are these policies consistent with HUD requirements?

g. Number of terminations of assistance incurred over the past year:

22. Eviction/Termination of Asst. Procedures A C

III. Leasing and Occupancy Rating

Superior Above Average Satisfactory

Below Average Unsatisfactory

Part D: Tenant/Management Relations

a. Is there an active tenant organization at this development?

23. Tenant Participation A C

24. Use of Community Space

a. Is indoor community space adequate and is it in satisfactory condition?

b. Does managing agent plan and use the space effectively?

24. Use of Community Space A C

25. Tenant Satisfaction

Security and social services

List any areas of dissatisfaction

25. Tenant Satisfaction A C

IV. Tenant/Management Relations Rating

Superior Above Average Satisfactory

Below Average Unsatisfactory

Part E: Drug-Free Housing Policy

A C

27. Evidence of Drug Activity

A C

V. Drug-Free Housing Policy Rating

Part F: General Management Practices

Type Frequency

Cash flow/accounting

Move out/move in

Delinquency

Maintenance

Other

28. Owner Participation A C

29. Organization and Supervision

Name of field supervisor(s)

Freq. of visits by supervisor

d. Has the owner/agent established a written personnel policy for employees?

29. Organization and Supervision A C

30. Staffing and On-Site Office Administration

a. List all staff billed to development account.

b. Are there signs enabling applicants/tenants to easily locate the office?

c. Is office organized and neat in appearance?

d. Are office hours posted?

e. Are office hours convenient for prospective applicants and tenants?

f. Are emergency phone numbers posted? Where?

g. Is there an acceptable key control system?

30. Staffing and On-Site Office Admin. A C

31. Operating Procedures and Manuals

a. Is there a procedures manual on-site for staff use?

31. Operating Procedures and Manuals A C

32. Training

a. Are the types of skills of staff appropriate for this development?

b. Does owner/agent have an ongoing training program for its staff?

On-site (Frequency )

IREM NCHM HUD seminars Local colleges

Fair Housing training date

Energy conservation

Other

How are updates communicated?

32. Training A C

33. Insurance and Bonding Submit insurance certificate renewals if the insurance will expire within 90 days or less.

a. List current insurance coverage and expiration date.

Property $

Liability $

Umbrella $

Fidelity $

33. Insurance and Bonding A C

34. Management Plan and Agreement

a. Is the owner/agent complying with the management plan?

b. Do on-site staff refer to the plan in their day-to-day activities?

Management fee %

34. Management Plan and Agreement A C

35. Program Compliance

a. Was the Consolidated Certificate of Compliance received?

When:

HOME ONLY

b. Was the Tenant Profile Compliance Report (form TST-2) received?

When:

35. Program Compliance A C

VI. General Management Practices Rating

Superior Above Average Satisfactory

Below Average Unsatisfactory

Number of program units Number of files reviewed

Name Unit Name Unit Name Unit

36. Resident File Maintenance and Security

Is it followed consistently?

36. Resident File Maintenance A C

37. Household Information

b. Does the application contain sufficient information to determine eligibility?

c. Was all move-in screening completed per the Tenant Selection Plan?

If a household was ineligible at move in, were exceptions granted?

37. Household Information A C

38. Verification

a. Have all eligibility criteria been verified and properly documented?

Did EIV show a discrepancy with previous income information?

If there was a discrepancy was it resolved?

38. Verification A C

39. Leases

a. Were the correct program leases used?

b. Were the leases signed and dated by all parties?

c. Were all applicable addendums/attachments added to the lease?

d. Were security deposits collected in the correct amount for the program type?

e. Were pet deposits charged according to the pet policy?

39. Leases A C

40. Inspections

40. Inspections A C

41. Certification / Recertification Activities

d. Were income and assets calculated correctly?

e. Were the correct rent and income limits used?

41. Certification/Recertification Activities A C

42. Billing A C

43. Move-Out File Review

a. Did the move-out files include the required documentation?

43. Move-Out File Review A C

a. Did the applicant rejection letter include the required criteria?

b. If appealed, were criteria met?

44. Applicant Rejection Review A C

VII. File Review Rating

Superior Above Average Satisfactory

Below Average Unsatisfactory Not Rated

Attachment A - tenant concerns

Issue/Complaint Status

Instructions

Development name & address: include addresses for all buildings. Use Development Description area of summary page if necessary for additional addresses.

If this is a scattered site, for example, use one address on the first page and list the remaining addresses in Development Description.

Owner entity: review management agreement, regulatory agreement, or audit. Use legal entity name.

Type of program: list all program types in senior loan position - i.e. HOME, Section 8 and/or Tax Credits. IHDA programs only - do not use abbreviations. Do not include LTOS, SRN or 811 here, as Rental Compliance does not monitor these programs. They are captured under Additional IHDA Program Units in the Development Description.

IHDA number: list all loan numbers by lien position (i.e. 17-2037-01), and IHDA TC number (federal & state). Use the Benedict numbering system, not the portfolio system.

Number of Program units: list for the highest IHDA position only

Date of last annual inspection: insert the date of the most recent on-site management review. This does NOT include the physical inspections. These inspections are addressed in part A.

Transferred to AM: omit MLs. Obtain from DMS, Project Dates.

Maturity date: obtain from Benedict.

Year of construction: insert year built. Refer to project summary. If construction year is not indicated, ask owner/agent.

Name / Title: type the name of the AM who completed the review; adjust title for Senior AMs

Review Approved By: the approving Rental Compliance Supervisor will insert their digital signature into the PDF version of the final report.

Name / Title: type the name of the Rental Compliance Supervisor.

Indicate term of any subsidy contract, including expiration date. For those developments where IHDA is not the Contract Administrator, obtain HAP contract info and indicate ending date. Also, identify the contract term. If not indicated, review the notes in the audit for this information.

Additional IHDA program units: list programs not identified above. (i.e. 10 SRN units / 8 one BR and 2 two BR)

Amenities: do amenities match the project summary?

Work out & additional comments: refinance, loan modification, transfer of physical assets, Owner or Agent changes, market changes. Review current Loan Monitoring Agenda.

Have all findings from prior reviews been resolved: List any outstanding/unresolved findings from the prior review (limited to the prior year). If there are outstanding findings, include specific findings. Unresolved code violations, audits, TSP and AMP updates, budgets, or tenant file audits, will result in an automatic Below Average or Unsatisfactory based on the number of findings.

h. Test all common area smoke detectors, C02 detectors, and emergency lights, if applicable. If hazards or violations exist, comment in the remarks column. Request a copy of violation and resolution to all safety issues.

i. All properties are required to have a physical inspection based on the program type. If there has been no inspection in the past three years, contact your field inspector. The appropriate inspection type should be selected based on the applicable program:

Check for pass/fail for the most recent physical inspection. Inspection date, type, and results can be reviewed in DMS under Monitoring > Project Monitoring > Program Inspection. Copies of the inspections, if needed, can be found in T:\Asset\Portfolio\Applicable Year\Inspection. If there has not been an inspection for the current year, review prior years and enter the most recent inspection date. If development failed their inspection verify current status with field inspector.

b. Are management and maintenance completing the work orders properly with date, time, what was repaired, and who completed work?

c-f. Answer questions.

a4. Redecorating includes painting, carpet replacement, tile replacement. Is there a written policy for redecorating for long-term tenants? Is there a written cycle redecorating schedule? Is it being followed? If N/A or No, please explain.

b. Identify procedures for corrections by management, maintenance and the resident c2. Look for signature line for resident and management. Move-in inspections must be signed by management & tenant. Move-out inspections must be signed by management. The form should be noted if tenant is not able to sign (i.e. skip, tenant did not participate).

b. Market ready is move-in ready. Inspect a sample of both market ready and non-market ready vacant units. Be sure to document any deficiencies observed in units management has indicated are market ready. Note in the comments column. Be sure to take pictures to support your observations.

Units should be move-in ready based on the timelines indicated in the management plan. In the absence of a management plan, follow the industry accepted standard, which is up to seven days. Longer make-ready time must be explained.

b. Check services currently contracted with outside contractors and identify name of contractor and annual amount of contract.

b. If the development is not free of major security problems, check which issues are problem areas.

c-d. Answer questions.

c. List the liability from the rent roll or security deposit report, and the balance from the security deposit escrow account in the remarks column. If account balance does not equal or exceed liability, explain how deficit will be funded.

d. Properties in Chicago must pay interest if the deposit has been held for 6 or more months (See Chicago Residential Landlord Tenant Ordinance).

Per state law (765 ILCS 715), interest must be paid out when it accrues to $5 or at move-out, whichever is sooner. Not required to pay if property is a public housing (excluding Mod Rehab projects), if there are less than 25 units, or if the parcels are not contiguous.

Contiguous means: adjacent, physically touching or adjoining without intervening parcels or pieces of property. If they are across the street, are separated by property with a different owner or are in different geographic areas they are not contiguous. If they are not contiguous, a determination regarding interest should be made by looking at each separate parcel by itself or by looking at one contiguous set of parcels separately from other non-contiguous parcel(s). If one parcel has 25+ units, interest is required. If any single parcel has less than 25 units, but together with other contiguous parcel(s) totals 25 or more, interest is required. If one non-contiguous parcel has 25+ units but the other(s) do not, only the parcel with 25+ must comply.

Evidence of security deposit interest refunds includes a printout from the General Ledger, the tenant ledger reflecting interest credited, a letter in the tenant file acknowledging receipt of a cash interest payment, a move-out reconciliation statement, etc.

f. Review the operating bank statement to determine how often deposits are made.

h. If no, explain in the remarks column.

i. If disbursement checks are not paid from the site, indicate who is responsible (i.e. corporate office, accounting department).

j. Funds include receipts, disbursements, petty cash, etc.

k. If no, explain in the remarks column.

l. Answer question, provide an example.

If audit is not received by deadline, FPA team will send a delinquency letter and, if necessary, a non-compliance letter. Look for any follow-up letters in the Portfolio, Audit folder. DMS will also be noted with notice dates.

a2. All budgets are due by October 1. If the Budget is not submitted on time, regardless of an extension request (enter extension expiration date in the remarks column), check no and make a comment regarding due dates. If the Budget has not been received, check no and make it a finding.

If budget is not received by deadline, FPA team will send a delinquency letter and, if necessary, a non-compliance letter. Look for any follow-up letters in the Portfolio, Budget folder. DMS will also be noted with notice dates.

b. For each of the last 3 years, enter the Debt Coverage Ratio (DCR). Obtain in DMS from Monitoring -> Project Monitoring -> AL_Audit. If the most recent year's audit has not been received/reviewed & the DCR determined, use the three most recent know years.

Example: When completing the 2022 review, enter the DCR for 2019-2021. If the DCR for 2021 has not been determined or the audit has not been received yet, enter the DCR for 2018-2020 and indicate in the comments that the 2021 audit is under review, or has not been received, as applicable.

c. Review most recent month end Balance Sheet. In general, the balance sheet should be no more than one month old. However, you may accept the month prior, if management's accounting department has not completed their month end processing.

If the balance sheet is not received, make a finding.

The balance sheet should be completed as follows:

Cash = cash - operations

Accounts receivable = Tenant Accounts…