Missouri Code of State Regulations › Title 4 - Department of Economic Development › Division 170 - Missouri Housing Development Commission › Chapter 4 - Supervision of Mortgagors › Section 4 CSR 170-4.300 - Financial Reporting and Compliance Requirements for Approved Mortgagors

Current through Register Vol. 49, No. 14, July 15, 2024
PURPOSE: This rule provides regulatory control by the
				  Missouri Housing Development Commission (commission) over approved mortgagors.
				  It requires approved mortgagors to furnish reports and financial information,
				  allows the commission to perform on-site inspections of developments, and
				  restricts the ability of approved mortgagors to change rents or ownership
				  without the consent of the commission.
(1) All developments financed in whole or in
				part by the Missouri Housing Development Commission (commission) must remain
				available to low- and moderate-income persons at the lowest possible costs
				throughout the life of the loan, or until such later time as the commission may
				require. To help insure the achievement of these goals, for all developments
				financed by the commission, the following procedures shall be established to
				monitor compliance with the requirements of the state housing act, these
				regulations, and the requirements of any regulatory agreement or land use
				restriction agreement governing the use of the development:
(A) Within ninety (90) days following the end
				of each fiscal year, all approved mortgagors operating developments consisting
				of twenty-four (24) or more units shall furnish the commission with a complete
				annual financial report based upon an examination of the books and records of
				the development prepared in accordance with the requirements of the commission
				by a certified public accountant or other person acceptable to the commission
				and certified by an authorized agent of the mortgagor. For any development
				containing less than twenty-four (24) units, the commission may, where deemed
				appropriate to protect the interests of the state of Missouri, require approved
				mortgagors of such developments to provide the commission with similar annual
				financial reports;
(B) The staff of
				the commission shall perform an annual performance audit of each development
				unless other applicable federal or state laws or regulations require more
				restrictive audit rules, in which case the more restrictive rules shall dictate
				the frequency with which audits are performed. Notwithstanding the previous
				sentence, the commission staff may, in the absence of more restrictive federal
				or state laws or regulations, perform such audits less frequently than once per
				year for developments meeting such criteria as the commission staff may
				establish from time-to-time;
(C)
				The staff of the commission shall perform an annual on-site inspection of each
				development unless other applicable federal or state laws or regulations
				require more restrictive inspection rules, in which case the more restrictive
				rules shall dictate the frequency with which inspections are performed.
				Notwithstanding the previous sentence, the commission staff may, in the absence
				of more restrictive federal or state laws or regulations, perform such on-site
				inspections less frequently than once per year for developments meeting such
				criteria as the commission staff may establish from time-to-time;
(D) The approved mortgagor for each
				development shall, on an annual basis, provide the commission staff with a
				verification of income of each of the tenants in its development. This
				requirement shall apply to all tenants, regardless of whether they occupy a
				market rate unit or a unit for which reduced affordable housing rents are being
				charged. For developments not receiving financing from the commission, the only
				initial verification of income for each tenant will be required unless any
				other federal or state laws applicable to the development shall require more
				frequent income verification of tenants, in which case the more restrictive
				requirements shall prevail; and
(E)
				Upon the request of the commission, its agents, employees, or attorneys,
				approved mortgagors shall submit monthly occupancy reports to the commission
				staff, as well as give specific answers to questions upon which information is
				desired from time-to-time relative to the operation and condition of any
				development.