CHAPTER 6 

PROGRAM ADMINISTRATION 

In addition to monitoring and enforcing program compliance, monitoring 

agencies also have several program administration responsibilities. They 

include: 

0 reporting to FDIC (or its successor); 

0 maintaining monitoring and compliance records; and 

0 cooperating with FDIC during its review of agency performance. 

This Chapter will examine monitoring agency responsibilities under the MOU. 

6.1 SEMI-ANNUAL REPORTS TO FDIC 

As established in the MOU, monitoring agencies must provide semiannual reports of their monitoring activities to the Washington, D.C. office of 

FDIC, or the designated office of FDIC. FDIC asks agencies to submit reports 

twice a year in order to fulfill its reporting obligations to Congress. 

Each report should contain the following items: 

Contents Of Semi-Annual Report To FDIC 

0 Names and addresses of all owners monitored. 

0 Names and addresses of all properties monitored. 

0 Occupancy status with respect to Total and VLI Set-Asides 

0 Description of agency monitoring activities for the period. 

0 List of properties not in compliance and the type of violation. 

0 Description of agency activities to compel owners to restore 

compliance. 

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The report should be prepared in the format prescribed by FDIC for monitoring 

agency semi-annual reports. A sample report format is included in Appendix L. 

FDIC will establish the reporting schedule for submitting agency reports.

 FDIC may change the due date for semi-annual reports after providing the 

agency adequate notification. 

6.2 AGENCY RECORD-KEEPING 

Monitoring agencies must maintain all files and records pertaining to their 

AHP monitoring and enforcement activities. These records, which must be kept 

for a period of three years unless otherwise instructed by FDIC, must include: 

0 individual property monitoring files; 

0 property compliance reports; 

0 notices of compliance violations; 

0 documentation of agency activities to compel owners to restore 

compliance; and 

0 documentation of all administrative fees (received and outstanding) for 

each owner. 

These records must be maintained in condition suitable for review and should 

be kept in a single location. 

Monitoring agencies must make AHP records, reports, and related 

materials available to FDIC, or its authorized representatives, upon request. 

FDIC and its duly authorized representatives may inspect, audit, and copy any 

of these items during regular business hours and at other times deemed 

reasonable by FDIC. FDIC will notify agencies prior to conducting such a 

review. 

Under the MOU, monitoring agencies also agree to provide 

representatives of the Comptroller General or the General Accounting Office 

(GAO) access to examine any property within the agencies' control involving 

transactions related to their MOU with FDIC. 

6.3 COMPLIANCE MONITORING SYSTEM (CMS) 

To assist the FDIC and the monitoring agencies with the tracking and 

reporting of compliance, FDIC has developed and distributed the AHP 

Compliance Monitoring System (CMS) software for use by the monitoring 

agencies. CMS is designed to assist the agency with the monitoring of 

properties by analyzing the owner’s reports for key compliance issues, including 

Set-Asides, rent limits, income eligibility, proportionality, and (to a limited extent) 

Next Available Unit requirements. CMS also assists the agency by producing 

the Semi-Annual report from the information entered from property reports. A 

full User’s Guide is distributed by FDIC. 

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CMS has been designed to help agencies monitor property compliance 

in addition to compile the required semi-annual reports. CMS includes an Audit 

subsystem that can be used by monitoring agencies to load data for individual 

properties, compile and compare current information collected, and determine if 

compliance violations exist. This information can then be uploaded into CMS to 

be stored for reporting purposes. 

In addition, FDIC has developed a subsystem known as the Owner Data 

Entry Program (ODEP) for use by owners. Although Owners are not required 

to use the program, it is strongly encouraged, since it will help reduce errors and 

save the agencies time in doing the required data entry. The software is 

provided to owners at no cost. See the Owner’s Compliance Manual. 

The primary purpose of ODEP is to help owners compile the monthly or 

annual reports due to the monitoring agency, and thus provide compliance data 

in computer format for use by the agency in its monitoring and reporting, but it 

also offers many additional features which help the owner to determine 

eligibility, maintain records, and tracking ongoing compliance. ODEP will: 

0	 calculate applicant/tenant income, compare annual income to eligibility 

limits, and determine eligibility based upon income information entered; 

0	 compare rents to current AHP 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 SetAsides, proportionality, and (to a limited extent) NAU/NAQU rules, and 

for expired TICs. 

These features help the owners by reducing errors and reducing the time 

required to compile reports. ODEP can speed up tenant processing by doing 

the determination of eligibility without computation errors. ODEP can produce 

the monthly rent roll and the monthly or annual compliance reports with only a 

few keystrokes. Also, the owner can use the software to check for compliance 

and to avoid errors that otherwise might only be discovered after the error has 

occurred. However, the ODEP system is capable of providing these benefits 

only if the owner/manager uses the system on an ongoing basis to process all 

certifications, recertifications, and unrestricted unit turnovers. 

At the monitoring agency’s option, properties in full compliance may be 

permitted to submit future reports and TICs in computerized rather than hard 

copy version. 

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This software should be made available to owners at no charge from the 

monitoring agency. The software is self-contained, but it requires the agency to 

first set up the property as described in Chapter 6 of the CMS Manual (see 

section 6.2.5). Training of owners and managers who will use the system is 

recommended. For a period of time, training and technical support are 

available from the FDIC. 

6.4 FDIC REVIEW OF AGENCY PERFORMANCE 

FDIC expects that each monitoring agency will continuously fulfill its 

obligations as set forth in the MOU and properly follow the monitoring 

procedures presented in this manual. 

As established in the MOU, FDIC will periodically review agency 

performance, which may include an on-site visit and review of records. FDIC 

will contact monitoring agencies in advance to schedule the visit. 

If the results of the periodic review indicate that an agency's monitoring 

and enforcement activities are unsatisfactory, FDIC will provide written notice to 

the agency describing the areas of unsatisfactory performance and offer the 

agency reasonable opportunity to remedy its performance. 

6.5 CONTRACTING FOR MONITORING SERVICES 

The MOU permits agencies to contract with other entities for monitoring 

services in support of their monitoring and enforcement responsibilities. 

An agency's contract with a monitoring services provider should set forth 

the provider's specific monitoring responsibilities and provide a means to ensure 

satisfactory performance of these responsibilities. The contract should specify 

that only the monitoring agency, or another entity with authorization under state 

law to initiate legal action, may prosecute judicial enforcement actions in cases 

of non-compliance by an owner. 

The monitoring agency should also schedule and conduct periodic 

monitoring of contractor(s) to ensure compliance with all monitoring obligations, 

including on-site review of files to verify information reported. 

In all circumstances, the monitoring agency is ultimately responsible for 

the successful performance of the monitoring and enforcement obligations 

established in the MOU. 

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