Proposed Budget Training for Stakeholders

Multifamily Housing August 2022

Click here to listen to the recorded Proposed Budget Training
Form RD 3560-7 

MFH Project Budget / Utility Allowance

Proposed Budgets 

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budget (bŭj′ĭt)

n.1. a. An itemized summary of estimated or intended expenditures 

for a given period along with proposals for financing them

b. A systematic plan for the expenditure ...during a given period

"A budget tells us what we can't afford, but it doesn't keep 

us from buying it."

— William Feather 

Defining Budget
Borrowers must submit annual proposed budgets to the Agency 

prior to the project’s fiscal year

Proposed budgets are planning documents that provide a picture of a 

project’s financial operations for the coming year. They reflect:

• Expected revenue and expenses - project feasibility

• Assures that funds are available to successfully operate the property

• Plans for maintenance, capital improvements and reserve account activity

• Return on investment (or return to owner), or a non-profit asset management fee

• Needed rent levels - basic rent and note rent 

• Reasonable and customary costs to cover turnover costs and maintenance which 

should be in line with comparable properties in the market

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Information required for budget submission to be complete 

(HB 2 Exhibit 4-1)

• Form RD 3560-7 completed per the Instructions. For projects with 8 or more units, this 

form must be submitted through MINC

• Operating budget for the fiscal year must include a budget narrative

• Utility allowance documentation 

• HB Letter 203, Notice to Tenants of Proposed Rent and Utility Allowance Change (if 

applicable)

• Other information necessary to justify the proposed rent and/or utility allowance 

change request

• If property is requesting an increase deposit to the Replacement Reserve, a current 

approved Capital Needs Assessment (CNA) is required; and review of new deposit 

amount and rents should be done in conjunction with the budget review.

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Budget Narrative

HB 2 Exhibit 4-1 and 4.14 B (5)

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Schedule for Budget Submission

• 90 days prior to start of the borrower’s fiscal year, if they are proposing a 

rent or utility allowance change

• 60 days prior to start of the borrower’s fiscal year, if they are not proposing 

a rent or utility allowance change.

• Within 30 days of transmitted, the Agency must take action by approval or 

denial of the budget or contact the Borrower to request additional 

information or clarification.

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Late Budget Submissions

The schedule provided for budget reviews relies on timely submission of budget documents by 

the borrower. 

If the borrower is tardy in submitting required documents, the Agency cannot ensure that all 

deadlines will be met. 

Late budget submissions may result in delaying the effective date of the proposed budget.

If no budget is approved by the end of the project’s fiscal year, the borrower must operate under 

the previously approved budget (referred to as a Carry-Over budget) until the Agency reviews 

and approves the new budget with a new effective date. 

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• If a budget for the new fiscal year is not entered in MFIS before the first 

day of the fiscal year:

• a Carry-Over budget is automatically built from the most recent approved budget on 

the first day of the project’s fiscal year by MFIS. 

• this is necessary if an acceptable budget is not presented to the Agency in time to be 

effective on the first day of the project’s fiscal year and is operating under the current 

existing budget, which would then become the Carry-Over budget. 

• This is not the norm, and should not be used in place of providing the 

Agency with a proposed budget, narrative, utility allowance 

documentation, etc.

Carry-Over Budgets

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Resources to consider when submitting your proposed budget

• 7 CFR 3560 https://ecfr.federalregister.gov/current/title-7

• 3560 HB-2 https://www.rd.usda.gov/resources/directives/handbooks

• FMI – 3560-7 MFH Project Budget

• The property’s management plan (HB-2, 3.3 & 7 CFR 3560.102(b)) 

• The property’s loan agreement/loan resolution 

• Attachment 3-D, Costs & Services to be Paid from the Management Fee

• Attachment 4-C, Allowable & Unallowable Project Expenses

• Recent site visits/inspections

• Capital Needs Assessment (if applicable)

• Section 504 Transition Plan (if applicable)

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Management Plan [7 CFR 3560.102(b)]

 Borrowers must develop and maintain 

 Establishes systems and procedures at the project 

 Ensure project operations comply with Agency requirements. 

 Used by Agency for oversight of project operations & monitoring of 

project compliance

 Provide the Agency with information regarding site operations

 Items in the plan are noted in 3560 HB 2, Attachment 3-A

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Form RD 3560-7 

Part I – Cash Flow Statement

 Projects whether the property will generate enough revenues for all 

the cash needs for the proposed budget period

 Proposed Ending Cash Balance must be positive and not cause an 

unwarranted rent increase

 Proposed Ending Cash Balance should not exceed the TOTAL of:

20% of total O&M expenses (Part I, Line 16);

+ Amount of the proposed real estate taxes & insurance escrow;

+ Any initial operating capital during the first 7 years

If an Ending Cash exceeds the total of the above items, it will be 

deemed to have excess/surplus cash.

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Form RD 3560-7, Multi-Family Housing Project Budget 

and Utility Allowance

CURRENT BUDGET -

Most recently approved 

budget. PROPOSED BUDGET – initial 

budgets or the next fiscal years 

planned activity

COMMENTS - Note 

appropriate comments
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PART I –Cash Flow Statement 1. Rental income must be based on full occupancy, 

including any rent change.

4. Laundry & Vending –

review the management plan.

5. Reflect 

projected 

interest from 

the 

operating, 

T&I, and 

Reserve 

account. 

6. Specify charges in 

the comments. 

Typically, do not 

include anticipated 

forfeited security 

deposits as project 

income.

7. Other Project Sources - If 

there is an amount entered, add 

a comment to explain.

8. Vacancy Rate based on 36-month history, 

not to exceed 15% with 15 units or less, or 

10% if more than 15 units. 

If vacancy OVER these caps - must have an 

approved SWOP. If SWOP has been 

approved, vacancy will be based on 

approved workout plan. 9. Any incentive must provide supporting 

information in narrative and have Agency 

approval.
PART I –Cash Flow

11. Cash-Non-Project - sources not in the form 

of a loan. Add comment. 

12. Any projected 

loan to property, 

including from a 

partner/owner; 

prior RD approval 

is required.

13. Carries over from Part III (Reserve account) line 7 and 

Part V Capital Budget column 2. This is automatically carried 

over in MINC & Vendor Software. 

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PART I –Cash Flow

16. Carried forward from Part 

II, Line 41.

17. Actual amount of RD 

annual debt payment. 

When an SNR is in 

effect, the amount of the 

mortgage payment under 

SNR should be noted in 

Column 4.

23. Reflect the Return 

to Owner as per the 

amount shown on the 

Loan Agreement/ 

Resolution, unless 

RTO is not allowed 

due to a SWOP in 

place during the fiscal 

year.

22. Must match with Loan 

Agreement/ Resolution or Servicing 

Workout Plan. This equals Part III, 

Line 2 .

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23. 3560.68 (d) Nonprofit organizations are not eligible to 

take a ROI. With prior Agency approval, nonprofit 

organizations may use housing project funds to pay asset 

management expenses directly attributable to ownership 

responsibilities, as described in §3560.303(b)(1)(vii). 

Limited to no more than $7,500 per project. 
PART I –Cash Flow 25. Debt repayment other than RD (i.e., Loan from General 

Partners, 3rd Party Loan, 538 Loan, etc.). Specify in 

comments (Ex. 538 Debt Service). Must have been 

approved by RD.

26. Carries forward from 

Part III Capital Budget, 

lines 4-6.

27. If Miscellaneous Cash Use is 

entered, there must be an explanation in 

Column 4 - Comment.

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PART I –Cash Flow

30. Is cash flow positive? A negative cash flow is 

permissible if borrower has sufficient cash carryover (Line 

33) and it does not appear to represent a trend that cannot 

be corrected.

31. PROJECTED cash on hand as of end of current fiscal 

year, including funds in the General Operating, Taxes & 

Insurance, & Petty Cash Accounts. THIS IS NOT current 

cash on hand figures.

33. Proposed Ending Cash must be positive and not 

cause an unwarranted rent increases. 

Ending cash balance should not exceed the total of: 

Approx. 20% of line 16. Part I (total O &M)

+ Amount held for taxes and insurance

+ Any 2% initial operating capital (HB2 Ch4)

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3560-7 Part II Operating and Maintenance Expense Schedule

7 CFR 3560.303

Allowable and unallowable project expenses. 

Expenses charged to project operations must be reasonable, typical, 

necessary and show a benefit to the residents of the property. Services 

and expenses charged to the property must show value added and be for 

authorized purposes.

The practice to prorate a shared cost, or shared staff person who performs 

multiple tasks should be consistent from one year to the next for cost 

comparison purposes

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3560-7 Part II Operating and Maintenance Expenses, continued

7 CFR 3560.303

(c) Priorities. The priority order of planned and actual budget 

expenditures will be:

(1) Senior position lienholder, if any;

(2) Operating and maintenance expense, including taxes & 

insurance;

(3) Agency debt payments;

(4) Reserve account requirements;

(5) Other authorized expenditures; and

(6) Return on owner investment (Return to Owner).

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Part II Operating and Maintenance Expense Schedule

1 & 2. (1) For project maintenance and 

janitorial staff who maintain a project’s 

buildings. (2) Supplies, such as light bulbs, 

carpet cleaner and similar items, not included in 

contracts. 

4. Interior painting. Covering 

labor, materials, supplies, not 

covered by a contract and not 

considered major capital 

expenditures

8. Services include the expense of bed bug control. We 

may request a breakdown of cost if they are higher 

than normal.

9. Include normal unit turnover costs (i.e., replacement of 

carpet, appliances, etc.) This is from Part V-Operating

10. ITEMIZE! Provide 

Comments 

Capital expenses §3560.103(c) appear in part V.

Turnover cost appear in operating maintenance and repair costs. 

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Part II Operating and Maintenance Expense Schedule

12-16. Report only expenses paid by 

the project. Do not include utility 

costs paid by tenants.

17. Other utilities not included above. 

Must identify in “Comments”

18. If utilities are included in rent, has there 

been a check with utility provider for any 

planned rate increases with an explanation in 

budget narrative.

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Part II Operating and Maintenance Expense Schedule

19. Wage expense for site persons as described in Mgmt plan. This 

includes project’s share of Service Coordinator salary/wages if paid as 

mgmt. staff. (see next slide for Service Coordinator info)

20. Must agree with approved Management Certification 

(3560-13). Fees based on revenue producing units @ 

100% occupancy or based on average 

vacancy/occupancy (same as Part I, line 8). 

21. Audits required for 

For-Profit or Limited 

Profit if federal financial 

assistance is $500,000 or 

more. And required for 

Non-Profit, State/Local 

Gov’t and Tribes if 

federal financial 

assistance is $750,000 or 

more. 22. Bookkeeping or Accounting– for supplies, such as 

notices, or typical bank charges. Electronic check readers 

are allowable expense. Costs of maintaining books are 

management fees. 

23. Legal 

fees are for 

the project.

24. Must advertise at least 

once during year per AFHMP; 

more if needed. Includes 

social media. If using free 

advertising, add a comment. 

Includes advertising for 

project staff.

25. Telephone expense for property, not management. Cell phones issued 

to on site personnel for project related work is allowable. Staff who 

oversee multiple properties is allowable and requires proration between 

properties. 

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Service Coordination (Service Coordinator)

What Is Service Coordination:

Assesses tenant needs

Identifies and links tenants to appropriate services

Assists with resourcing free tenant services or additional funding sources for these types of services

Educates tenants on the availability of supportive services 

What Is Not Service Coordination:

Assisting with other administrative duties of the management agent or housing operations

An activities or recreation coordinator

Directly providing the supportive service

Providing tenant services or tenant amenities

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• Anticipate an average increase of $7 for the PUPM management fee

• Range from $2 - $10 increase (most increases are in the $6-$8 range)

• FY2023 - Based on State’s percentage increase of the 80% median family income in non-metro 

areas. 

• Add-on fee for multiple layers of subsidy (with reporting requirements)

• Regardless of the number of layered subsidies, the total add-on fee for this category is $5. 

• Example:

• If a Section 515 property has Section 8 and LIHTC subsidy layers with reporting requirements, the 

management agent can receive the $5 add-on fee. (It’s not $5 x 2.)

FY 2023 Management Fee & Add-on fee for multiple subsidies

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• Add-on Fee for Remote Location:

• Defined as properties located within the USDA Economic Research Service (ERS) Level 4 

Frontier & Remote (FAR) Area codes

• https://www.ers.usda.gov/data-products/frontier-and-remote-area-codes/

• If the property does not suffer from difficulty retaining staff, obtaining services, or if 

management offices are located near the Level 4 FAR property, management should refrain 

from claiming this add-on fee.

• These states do not have areas that meet the Level 4 FAR definition: Connecticut, Delaware, 

Indiana, Massachusetts, New Jersey, Ohio, Puerto Rico, Rhode Island, South Carolina, and the 

Virgin Islands

• Properties in Alaska or Hawaii that are authorized to take the “off-road” management fee are 

not eligible to claim an additional add-on fee for remote location.

• If property is not located in a Level 4 FAR area, and management can justify a remote location 

add-on fee, they may request an exception.

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FY2023 – Remote Location definition (Management add-on fee)
https://www.ers.usda.gov/data-products/frontier-and-remote-area-codes/

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Demonstration of USDA ERS – Level 4 FAR Codes
Part II Operating and Maintenance Expense Schedule

26. Office supplies used exclusively 

by the project. 

27. Office furniture & equipment 

used exclusively by the project.

28. Training expense for 

site staff training. Does 

NOT include training of 

management agent’s 

central office staff.

29. For site staff. Health insurance & 

benefits for Management’s central office 

staff’s is not a project allowable expense.

32. Other Admin Exp. – annual Guarantee Fee 

for combo 515 & 538 loans. The fee is NOT 

included in the interest rate (debt payment) on 

Part I, Line 25 (Authorized non-RHS debt). 

Add a comment. 

33. Agency analysis is flagged if 

Administrative expenses exceed 23% of 

gross potential basic rents. Helpful to 

provide a comment or explain in narrative. 

Gross Rents 

is Line 1 of 

Part I

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Part II Operating and Maintenance Expense Schedule

34. Includes all general real estate taxes for the property. 

35. If applicable – special property tax assessments directly 

charged to the property. 

If proposed expenses by subtotal category differ from last year’s approved budget subtotals by 10% or more, a 

comment or narrative explanation is required. 

37. Property & Liability Ins. – Annual premium for the 

property. Pro-rated cost if multi-year or blanket policy. 

38. Fidelity Ins. – For on-site staff and owners. 

Coverage for central office staff is paid from 

management fee. 

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Part III – Account Budgeting Status

1. Estimated beginning balance for the proposed fiscal 

year. This is NOT the current reserve account balance, 

and it is not last year’s ending balance.

2. Automatically transfers to Part I, line 22, 

and must match Loan Agreement/ Resolution 

or servicing workout plan.

4. Annual Capital Budget. From 

Part V – Reserve.

7. This is 

automatically 

transferred to Part 

I, line 13.

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Part III Account Budgeting Status, continued

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Part IV – Rent Schedule and Utility Allowance

Rental charge established to cover expenses 

in the approved budget and the required 

loan payment reduced by the interest credit 

agreement. 

Rental charge established to cover expenses in the 

approved budget and the required loan payment set 

at the interest rate shown in the Promissory Note or 

Re-amortization Agreement or Special Note Rate (if 

applicable).

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Part IV – Rent Schedule and Utility Allowance

The spread between the rent for 1, 2, 3, etc. bedroom units 

is based on the same amount or percentage for each size, or 

square footage or spread on CRCU. 

The total Basic 

Rent Potential 

Income agrees 

with Part I, line 1.

The rental rates in these columns are for the 

individual unit rate for Basic, Note, and 

HUD (if applicable) for each size and type 

of unit.

The potential income utilizes the individual 

unit rate x # of units x 12 months for each 

of the rental rates of Basic, Note and HUD 

(if applicable)

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Rent – Common questions

Do similar units have to have same rents? 

• Rents must be established at the same rate for all similar units in 

the housing project.

Do my one-bedroom rents and two-bedroom rents have to 

change at the same rates?

• Changes in rental rates will apply to all units in a project. (HB 2 

Chapter 4 Paragraph 4.14 (C))

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Note Rent vs Basic Rent

Note rent is the rental charge 

established to cover expenses in 

the housing project's approved 

budget and the required loan 

payment set at the interest rate 

shown in the promissory note.

 All Section 515 and Off FLH 

properties are required to 

have a Note rent.

 Must be greater than Basic 

rent

Basic rent is the rental charge 

established to cover expenses in the 

housing project's approved budget and 

the required loan payment contained in 

the promissory note reduced by the 

interest credit agreement.

 Only Section 515 with Interest Credit 

(not all Section 515 have Interest 

Credit)

 Off FLH properties do not have basic 

rent – promissory note is already at 

1%

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Rent Example - 40 revenue units 

(8 – 1-bedroom and 32 – 2-bedroom units)

Unit Size Proposed Basic Rent Proposed Note Rent

1 bedroom $690 $845 ($155)

2 bedroom $780 $957 ($177)

Subsidized Annual 

Loan Payment (1%)

Promissory Note Annual 

Loan Payment (2.5%)

Difference in Annual 

Loan Payments

Unit Per Month 

Difference

Difference Between 

Basic Rent & Note 

Rent

$31,112.28 $42,882.96 $11,770.68 $24.52 $25/month

Unit Size Basic Rent Correct Note Rent

1 bedroom $690 $715 ($25)

2 bedroom $780 $805 ($25)

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Rents by Project Type

HB-2, Exhibit 7-1

Project Type Rents

Plan I Projects Note Rent only

Plan II Projects Basic Rent and Note Rent

HUD Section 8 & 515 Projects (without Interest Credit Note Rent and HUD Contract Rent

HUD Section 8 & 515 Projects (with Interest Credit) Basic Rent, Note Rent, and HUD Contract Rent

Early Projects (pre-1968, direct loan & full profit) Note Rent

Labor Housing - On Farm No Rent or Note Rent (notes are at 1%)

Labor Housing - Off Farm Note Rent (notes are at 1%)

Congregate Housing/Group Homes Basic Rent and Note Rent

Cooperatives Basic Rent and Note Rent

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HUD Rent

HUD contract rent is the 

rental charge established 

for housing receiving 

project-based Section 8 

rental subsidies in 

accordance with 24 CFR 

part 880 or part 884, as 

applicable.

Tenant subsidy codes, per 

the project worksheet, 

would include subsidy 

codes “2”.

 HUD rents should 

not be lower than 

basic rent

 The Agency does not 

automatically accept 

HUD rent for Basic 

rent.

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BASIC rent versus NOTE rent versus HUD rent

(Section 8 property with Interest Credit)

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More common

Less common
Low-Income Housing Tax Credit (LIHTC) Rent

Low-income housing tax 

credit (LIHTC) rent is the 

rental charge established 

in accordance with LIHTC 

requirements.

LIHTC program prohibits 

owners from charging 

tenant more than the 

agreed upon LIHTC rent in 

LIHTC units

 When Basic Rent 

exceeds LIHTC rents, 

the borrower is 

responsible for 

funding any gap 

between Basic rents 

and LIHTC rents.

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Special Note Rent (SNR)

HB-3 Chapter 10 Section 6

A property suffering from 

vacancies due to market 

conditions may request a 

Special Note Rent (SNR), 

which sets Note rents at 

less than the current 

Note rent but higher 

than Basic rent, to attract 

or retain tenants whose 

income level would 

require them to pay more 

than Basic rent. (Plan II 

properties only.)

 SNR is part of a Workout 

Plan

 Must forgo return to 

owner for the duration of 

the SNR

 Borrowers request changes 

to the SNR at the time of 

budget review

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Additional Resources for Rents

• 7 CFR 3560 Subpart E – Rents

• HB-2-3560, Chapter 7

• Exhibit 7-1 – Rents by Project Type

• Exhibit 7-6 – Determining Overage in Section 8/515 Projects 

with Interest Credit – Examples

• Exhibit 7-10 - Impact of Interest Credit Agreement on Ability to 

Cancel Interest Credit, Collect Overage, and Deposit Excess 

Funds in the Reserve Account

• HUD Section 8 Renewal Policy

• Chapters 2, 6 & 14

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Rent Example - 40 revenue units

(8 - 1 bedroom, 16 - 2 bedroom & 16 - 3 bedroom units)

HUD Project-Based Section 8 Property

Unit Size Current Basic Rent Current Note Rent Current HUD Rent

1 bedroom $640 $680 ($40) $640

2 bedroom $754 $793 ($39) $754

3 bedroom $953 $980 ($27) $953

Subsidized Annual Loan 

Payment (1%)

Full Note Annual Loan 

Payment (5.75%)

Difference in Annual 

Loan Payments

Unit Per Month 

Difference

Difference Between 

Basic Rent & Note Rent

$9,366.12 $22,437.12 $13,071.00 $27.23 $28/month

Unit Size Proposed Basic 

Rent

Proposed Note Rent Proposed HUD Rent 

(based on HUD 

contract)

Correct Basic Rent

(based on proposed 

budget)

Correct Note Rent 

(based on proposed 

budget)

1 bedroom $637 $643 ($6) $637 $625 $653

2 bedroom $748 $768 ($20) $748 $739 $767

3 bedroom $948 $953 ($5) $948 $938 $966

 Rent changes by HUD must be 

reviewed and are not 

automatically approved. 

 Only the amount of rent necessary 

to cover project expenses must be 

approved.

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Part IV – Rent Schedule and Utility Allowance

Enter the proposed Utility Allowance for the coming year. 

(for utilities that are paid by the tenant) 

Documentation must be provided to either retain or change the Utility Allowance amount.

 A 12-month sampling of tenant utility costs and will include a sampling of every size of unit.

 A 12-month average will be used for the calculation

 A summary of the calculations must be submitted to the Servicing Official

 Borrower provides documentation from utility company, if a rate change is expected

 Borrower must request a change if the proposed change is 10% or more from the current utility allowance.

 If no changes in utility costs – provide the 12-month sampling and document in budget narrative that no 

change in rates occurred in period being reviewed and/or public release from utility provider indicating no 

change in rates. 

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Part V – Annual Capital Budget

45

Number of units planned 

for in this column.

This 

Column

will carry 

over to

Part III, 

line 4.

This 

Column

will carry 

over to

Part II, 

line 9.

Unit turnover costs (carpeting, appliances, painting, etc.) would be 

entered/budgeted here as they are typically budgeted in the “Proposed 

from Operating” column.
Part V Annual Capital Budget

CAPITAL NEEDS ASSESSMENT (CNA) HB-2, 4.13 A.

 When a reserve account and contributions to the reserve account have been sized 

in accordance with an approved capital needs assessment, the reserve account 

funds are to be used to fund capital items as described in the plan. 

 With a CNA, funding of the reserve is designed to match the timing and potential 

cost of needs - following the plan should limit the amount of funds required from 

operating sources to pay for capital needs. 

 Reflect these improvements in Part V under Column 2 (Proposed from Reserve).

 An explanation should be provided if items are not completed in the years 

identified in the CNA

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Part V Annual Capital Budget, continued

• If an increase in Replacement Reserve annual deposit is requested, 

there must be an approved CNA to document future capital needs

• Work with Servicing Specialist prior to proposed budget season to have 

CNA completed, reviewed and approved 

• CNA is completed with understanding there is NO 3rd party funding 

anticipated and NO rehab is anticipated

• Utilize Agency “Addendum to the CNA Contract” and “CNA Statement of Work”

• Servicing Specialist will utilize a resizing template to assist with the new 

annual deposit amount

• Basic rents cannot exceed conventional rents for comparable units in the 

area 

• Communication and planning is key 

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Part VI – Signature, Dates and Comments

PROPOSED BUDGET

Transmitted via MINC, unless less than 

8 units, and have an Agency waiver

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1. A comment or explanation was not provided on an “Other” or “Miscellaneous” line item.

2. Incorrect calculation of Basic or Note rent, or rent increase not applied equally among all unit 

types. Part I line 1 “Rental income” is not correctly calculated based on submitted rent 

schedule.

3. When there is a significant discrepancy between the budget submitted and last year’s proposed 

budget or the most recent yearend actuals. (example - $0 budgeted for laundry but historically 

there has been significant laundry income)

4. A rent increase is proposed when the budget indicates there will be projected surplus cash at 

the end of the proposed fiscal year. 

5. The proposed vacancy allowance does not correspond to the most recent 36-month average 

vacancy, and no comment or narrative explanation was provided. 

Most Common Reasons for Agency Staff to Contact Management 

during Proposed Budget Reviews

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Most Common Reasons for Agency Staff to Contact Management 

during Proposed Budget Reviews

6. The proposed RHS Debt Payment does not equal 12 months of subsidized RD loan payments, 

and there is no approved loan deferral. 

7. The proposed transfer to the Reserve Account does not match the Loan Agreement(s)/ 

Resolution(s); and there is no approved workout plan or Amendment to the Loan 

Agreement/Resolution increasing the annual reserve deposit.

8. Budget is projecting a negative cashflow and there is not sufficient (surplus) operating funds to 

account for the negative cashflow.

9. For tenant paid utilities, the 12-month utility allowance documentation was not provided. (this is 

needed even if there is no proposed change to the current utility allowance)

10. A workout plan is needed and has not been submitted to the Servicing Specialist for approval.

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Proposed Budget Training

Questions should be sent to the Servicing Specialist assigned to your property.

If you are unsure who the property is assigned to, please visit 

https://www.sc.egov.usda.gov/data/MFH.html. 

The listing includes the assigned specialist as well as the supervisor who can 

be contacted if the specialist is unavailable.

Thank you for listening!

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End Slide 

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