CHAPTER 6 

REPORTING, RECORD-KEEPING, AND 

ADMINISTRATIVE REQUIREMENTS 

6.1 INTRODUCTION 

Owners of AHP properties are required to do the 

following: 

¤	 Owners are required to submit regular Compliance 

Reports to the monitoring agency. During PreCompliance, these reports are submitted monthly. 

Once a property has met its total set-aside 

requirements, Compliance Reports are submitted 

annually, and are accompanied by an Owner 

Compliance Certification. 

¤	 Owners must maintain records, such as tenant files 

and monthly rent rolls, in good condition and available 

for inspection by the monitoring agency or other 

authorized entities. 

¤	 Owners must pay an annual fee to the monitoring 

agency and are required to adhere to other 

administrative requirements, including cooperating 

with monitoring staff during annual on-site reviews. 

6.2 AHP REPORTING REQUIREMENTS 

There are two reporting forms owners must regularly 

submit to their monitoring agency: 

0	 compliance reports; and 

0	 owner compliance certifications. 

A. Compliance Reports 

Compliance reports are submitted either on a monthly or 

an annual basis, as directed by the monitoring agency. 

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The AHP Compliance Report Form, and instructions for 

completing the report. can be found in Appendix F. 

Monthly Pre-Compliance Reports 

Compliance reports are typically submitted on a monthly 

basis during the Pre-Compliance stage, which begins at 

property closing and lasts until the monitoring agency has 

determined that the property is in compliance with AHP 

occupancy requirements. 

Tenant Income Certification (TIC) forms for new and 

recertified units completed during the month being 

reported must be attached to each monthly compliance 

report. 

Annual Compliance Reports 

Once the monitoring agency has confirmed that a property 

complies with its LURA, compliance reports are submitted 

annually. The compliance reports should be submitted to 

the monitoring agency by the date set by the agency. 

Tenant Income Certification (TIC) forms for every QU 

must be attached to annual compliance reports. This 

would include all new certifications and recertifications of 

QUs since the time of the last report. 

If a property falls out of compliance, monitoring agencies 

may require owners to resume submitting monthly 

compliance reports until compliance is re-established. 

B. Owner Compliance Certification 

The LURA requires owners to certify, at least annually, 

that they have complied with all the terms and provisions 

of the LURA. This certification must be prepared and 

sent to the monitoring agency when the property reaches 

full compliance and at the time annual reports are 

submitted. 

The certification must be signed by the owner or a 

representative with full authority to legally bind the 

ownership entity. If the certification is signed by anyone 

other than the person who signed the LURA, evidence of 

signature authority must be provided. 

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A sample Owner Compliance Certification is included in 

Appendix G. 

C. Owners Data Entry Program 

To assist owners with the tracking and reporting of 

compliance, FDIC has developed and distributed a 

computerized data entry system, known as the Owners 

Data Entry Program (ODEP) for use by owners. 

The primary purpose is to help owners compile the 

monthly or annual reports due to the monitoring agency, 

but it also offers many additional features which help the 

owner to determine eligibility, maintain records, and track 

ongoing compliance. ODEP can: 

0	 calculate applicant/tenant income, compare annual 

income to eligibility limits, and determine eligibility 

based upon income information entered; 

0	 compare rents to current rent limits; 

0	 produce the TIC for tenant and owner signature; 

0	 store the TIC information so that owners may 

produce the monthly rent roll and the monthly or 

annual compliance report without re-entering any 

data (assuming owners have entered all unit 

information); and 

0	 allow owners to check their property for ongoing 

compliance with Set-Asides, proportionality, and 

(to a limited extent) NAU/NAQU rules, and for 

expired TICs. 

The ODEP system can do all these things provided the 

owner/manager uses the system on an ongoing basis to 

process all certifications, recertifications, and unrestricted 

unit turnovers. It can speed up tenant processing by 

doing the calculations and the determination of eligibility 

without computation errors. If it is used to enter all 

information as units and tenants are processed, the 

production of the monthly rent roll and the monthly or 

annual compliance reports will be as simple as the push of 

a button. Moreover, the owner can use the software to 

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check for compliance and to correct errors as they occur. 

State monitoring agencies may also chose to permit 

properties in full compliance to submit future reports and 

TICs in computerized rather than hard copy version, 

subject to continued AHP record-keeping requirements 

and access for on-site monitoring. 

This software is available to owners at no charge from the 

monitoring agency. The software is self-contained, and 

runs on DOS or Windows-based systems. It requires a 

386SX IBM PC or compatible computer, configured with: 

0 IBM or MS DOS, version 5.0 or higher; 

0 a minimum of 5 megabytes (MB) of memory; 

0 a minimum of 50 MB of hard disk space; and 

0 a 3 1⁄2” floppy drive. 

Contact the monitoring agency for a copy. The agency 

will have to set up the property in the software, so allow 

some time for production and shipping. The instructions 

for the ODEP system are included in this Manual at 

Appendix J. 

6.3 AHP RECORD-KEEPING REQUIREMENTS 

There are two important record-keeping requirements: 

tenant files and monthly unit listings. 

A. Tenant Files 

Tenant files must be maintained for a period of at least 

three (3) years after a tenant moves out. Tenant files 

must contain the following items: 

Rental application: See Appendix A for a sample 

application form that requests all the information needed 

to assess tenant eligibility. 

Release and Consent Form: Release and consent 

forms containing AHP-required language (see sample 

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Release and Consent form in Appendix B) must be 

obtained for each adult household member. 

Verifications: Appropriate documents verifying the 

income information provided by the tenant must be 

included. 

Tenant Income Certification (TIC): The original TIC or 

the most recent recertification must be included, and must 

contain signatures of the head of household and an 

authorized property management representative. 

Dwelling Lease: The original must be included and 

should contain signatures of the head of household and 

an authorized property management representative. 

Good Practices:
 

Maintaining Tenant Files
 

0	 Set up applicant files, containing the application form, 

verifications, and other relevant documentation which may 

be useful in answering inquiries or complaints on behalf of 

applicants who were rejected. 

0	 Keep all files in separate folders, clearly marked with tenant 

or applicant name. 

0	 Use file checklists to note everything in the file. 

0	 Clip applications and Release-and-Consent forms to the left 

side of the opened folder. Clip TIC forms and all supporting 

verification documents to the right side of the opened folder. 

0	 Use color coded folders or tabs to readily distinguish 

between VLI, LI, and unrestricted units. 

0	 Maintain these files for at least three (3) years beyond the 

date of the rejection. 

B. Monthly Unit Listings 

Under the program, owners must keep monthly unit 

listings showing the occupancy of their property. Unit 

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listings must be kept for every month and maintained for a 

period of three years. 

A unit listing should provide the following information for 

each unit: 

0 Unit number 

0 Number of bedrooms 

0 Tenant name 

0 Household size 

0 Effective lease date 

0 Monthly rent 

0 Unit status (VLI-QU, LI-QU, OI-QU, or unrestricted 

unit) 

For many properties, the monthly rent roll owners already 

keep provides most of this information. Owners must 

provide a copy of the most recent monthly unit listing upon 

request from the monitoring agency. 

The ODEP computer system can provide owners with this 

monthly listing, if the owner keeps all unit turnover up to 

date in the system. 

6.4 ADMINISTRATIVE FEES 

A. Annual Fee 

In signing the LURA, owners agreed to pay an annual 

administrative fee to their monitoring agency. This fee, 

based on the schedule established in the LURA, is 

computed by multiplying the base fee (see Section 4.6(a) 

of the LURA) by the required number of set-aside units in 

the LURA. 

The annual administrative fee is due the day the LURA is 

signed and covers the following twelve month period. 

Each following year, owners will receive an invoice for the 

coming year's administrative fee prior to the start of the 

fee period. The agency may adjust the fee annually for 

increased costs due to inflation. 

B. Fees for Non-Compliance 

Owners whose properties fall out of compliance may be 

assessed an additional administrative fee up to an amount 

equal to the annual fee, including any adjustments for 

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inflation. This additional fee is distinct from and in 

addition to the annual fee. See Section 2.6.C of this 

Manual for further details. 

6.5 RESALE PROCEDURES 

Owners should notify the monitoring agency of the 

proposed resale of the property at least 30 days prior to 

closing. This notification is necessary to give the 

monitoring agency sufficient time to prepare for the 

change in ownership and take actions necessary to 

assure continued compliance with the LURA. 

In addition, as described in the LURA (generally Section 

7.6), sellers must, at their expense, ensure that the LURA 

is duly recorded and filed in connection with resales. It 

should be noted that the LURA binds all subsequent 

owners of the property to the agreement for the full term, 

regardless of whether such successors acknowledge or 

execute the LURA. 

6.6 USE OF THE PROPERTY 

Typically, each LURA contains a brief provision pertaining 

to the use of the property. During the term of the 

agreement, the owner must maintain the property as 

multifamily rental housing or for resale of single family 

units to qualified purchasers. Rental units must be 

occupied or held available for rental on a continuous 

basis. 

6.7 COMPLIANCE ENFORCEMENT 

A. Background 

Monitoring agencies will work closely with owners to 

assure compliance. If a compliance violation occurs 

because of misconceptions regarding program procedures 

or the limitations of the management system in place at 

the property, owners are encouraged to request additional 

training or assistance from their monitoring agency. 

Sometimes it may be necessary for monitoring agencies 

to take action to compel owners to bring the property back 

into compliance. These actions fall into two categories: 

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0 administrative remedies, and 

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 9/97 
0	 judicial sanctions. 

Because a property that is out of compliance requires 

additional monitoring, agencies also have the authority 

under the LURA to assess the owner an additional 

administrative fee for non-compliance. 

NOTE: Agencies will not categorize owners as being out 

of compliance with their LURA simply because they are 

still in the Pre-Compliance period. However, it is possible 

for a Pre-Compliance property to be declared in noncompliance if, for example, the owner fails to submit 

monthly compliance reports on a timely basis, continues 

to rent next available units to ineligible households or 

otherwise fails to make efforts to achieve full compliance. 

B. Administrative Remedies 

Agencies may take steps short of initiating legal action. 

They include: 

0	 informing the property’s lenders and other
 

regulators of the non-compliance;
 

0	 informing agencies or divisions administering other 

forms of housing assistance, such as tax credits, 

of continuing non-compliance by an owner; 

0	 barring the owner from further participation in other 

agency programs; 

0	 providing notice to the limited partners or investors 

of a managing partner's non-compliance; or 

0	 notifying the board of trustees, the parent 

organization, or sponsoring entity of a non-profit 

that is out of compliance. 

Agencies can also demand return of excess rents 

resulting from non-compliance (see below). If owners fail 

to comply with disgorgement or other agency demands, 

agencies then may seek recourse through the judicial 

system, as described below. 

C. Judicial Sanctions 

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The LURA authorizes the agencies to go to court as a 

means of forcing owners to correct conditions of noncompliance. Agencies will generally attempt 

administrative remedies before going to court, but owners 

must understand that agencies are not obligated to do so, 

and may begin legal action within sixty (60) days from 

issuance of a Notice of Non-Compliance. These actions 

could include: 

0	 filing suit to force the owner to take corrective 

action; 

0	 filing suit to appoint a receiver for the property; or 

0	 filing suit to collect outstanding fees. 

D.	 Additional Administrative Fee for NonCompliance 

The LURA authorizes agencies to collect an additional 

administrative fee when they have determined that a 

property has fallen out of compliance. 

The LURA authorizes agencies to charge an additional 

fee, up to an amount equal to the annual administrative 

fee for up to three years following its most recent finding 

of non-compliance. This additional fee is distinct from 

and in addition to the annual fee. 

E.	 Corrective Actions to Restore Compliance 

Guidance on corrective actions and proposed corrective 

action deadlines for violations of occupancy is 

summarized in the following tables: 

Exhibit 6.1 Occupancy Violations 

Exhibit 6.2 Rent Limit Violations 

Exhibit 6.3 Reporting Violations 

Exhibit 6.4 Fee Violation 

These exhibits are provided as illustration to owners of 

possible agency actions. Monitoring agencies have been 

granted considerable latitude in taking corrective actions 

to restore compliance. 

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EXHIBIT 6-1
 

OCCUPANCY VIOLATIONS - CORRECTIVE ACTIONS
 

VIOLATION CORRECTIVE ACTIONS 

CORRECTIVE ACTION 

DEADLINE 

1. Owner Failed to Maintain the • Follow Next Available Unit (NAU) procedures (Exhibit 3.3) Must implement corrective action until 

Required Number of QUs until the required number of QUs is obtained. 

• Submit monthly occupancy reports to monitoring agency 

until compliance is restored. 

• Submit a certification of compliance form once the required 

number of QUs is obtained. 

number of QUs meets the Total SetAside for the property. 

2. Owner Failed to Rent Available • Follow NAU procedures (Exhibit 3.3) until the required Must implement corrective action until 

QUs to VLI tenants to restore number of VLI—QUs is obtained. number of QUs meets the VLI Setrequired number of VLI—QUs 

• Submit monthly occupancy reports to monitoring agency 

until compliance is restored. 

• Submit a certification of compliance form once the required 

number of VLI—QUs is obtained. 

Aside for the property. 

3. QU Designation Removed from 

Eligible Tenant 

• Restore QU designation to the original unit/ household. 

(Note: may exceed total QUs required.) 

• If the rent for the affected unit was raised above the 

appropriate rent limit, return the excess rent according to 

actions in Exhibit 6.2. 

• Submit a copy of the lease or rental agreement showing 

that the rent complies with the rent limit. 

Within 30 days of the Notice of NonCompliance. 

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EXHIBIT 6-2
 

RENT LIMIT VIOLATION - CORRECTIVE ACTIONS
 

VIOLATION CORRECTIVE ACTIONS 

CORRECTIVE ACTION 

DEADLINE 

1. Qualifying Unit Rent • Reduce the rents for the affected units ________ [list Within 30 days of the date of the 

Exceeds Appropriate Limit unit #s] to _______ [rent limit] 

• Calculate the amount of excess rent received from 

the tenant. 

• Apply overpayment as a rent credit toward next 

month's rent for unit. If overpayment exceeds next 

month's rent, any excess must be repaid to tenant. 

• If the tenant has moved out, mail the full amount of 

the overpayment to the tenant. If the tenant cannot 

be located, pay the overpayment to the monitoring 

agency for use in providing housing assistance to 

Low Income families. 

• Send letter to tenant by registered mail announcing 

revised unit rent. The letter must also indicate the 

amount of the rent credit awarded and indicate any 

repayment to the tenant. 

• Send a copy of tenant letter with the return receipt to 

monitoring agency prior to the compliance deadline. 

Notice of Non-Compliance 

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EXHIBIT 6-3
 

REPORTING VIOLATIONS - CORRECTIVE ACTIONS
 

VIOLATION CORRECTIVE ACTIONS 

CORRECTIVE ACTION 

DEADLINE 

1. Owner Failed to Submit Monthly 

Compliance Report 

• Submit properly completed Monthly Compliance Report by 

corrective action deadline 

Within 10 days of the Notice of NonCompliance. 

2. Owner Failed to Submit Annual 

Compliance Report 

• Submit properly completed Annual Compliance Report by 

corrective action deadline 

Within 30 days of the Notice of NonCompliance. 

3. Owner Failed to Obtain a Tenant 

Income Certification or Proper 

Income Verification Prior to 

Move-in 

• Obtain a completed tenant income certification and submit 

copies of the outstanding documents to the monitoring 

agency by the corrective action deadline. 

• If over-income and insufficient QUs, follow corrective 

actions listed for Occupancy Violation No. 1. 

Within 30 days of the Notice of NonCompliance. 

4. Owner Failed to Obtain a Tenant 

Income Recertification by 

Required Date 

• Obtain a completed tenant income recertification and 

submit copies of the outstanding documents to the 

monitoring agency by the corrective action deadline. 

• If the tenant is over-income, follow NAU procedures in 

section 3.5 to obtain the required number of QUs. 

Within 30 days of the Notice of NonCompliance 

5. Owner Failed to Maintain Proper 

On-Site Tenant Files 

• Obtain documentation to complete the tenant files. 

• Submit copies of the outstanding documents to the 

monitoring agency by the corrective action deadline. 

Within 30 days of the Notice of NonCompliance 

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EXHIBIT 6-4
 

MONITORING FEE VIOLATION - CORRECTIVE ACTIONS
 

VIOLATION CORRECTIVE ACTIONS 

CORRECTIVE ACTION 

DEADLINE 

1. Owner Fails to Pay Annual 

Monitoring Fee by the 

Required Date 

• Owner must pay annual monitoring fee to agency Within 30 days after the date of 

the Notice of Non-Compliance. 

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