FOR PROJECTS SUBJECT TO TENANT COMMENT PROCEDURES Required Materials Description Appendix 6 Copy of Tenant Notice Annotate it to show where and how the Notice was distributed. 2.06-3. E. 7 Certification of Compliance with Tenant Comment Procedures An executed copy certifying compliance with tenant comment procedure requirements 2.06-3. F. 8 Copy of Tenant Comments with Evaluation If tenant comments were received, a copy of all comments must be provided with the owner’s final submission after the tenant comment period has ended. The submission must include an evaluation of the comments received. 2.06-1 FOR PROJECTS REQUESTING ADJUSTMENT TO THE REPLACEMENT RESERVE Required Materials Description Appendix 9 Request to Revise Reserve Deposits A signed request for a change in the reserve for replacement deposit if such a change is contemplated as part of the rent adjustment request. 2.06-3. H. 10 Reserve Analysis An analysis must be performed if an owner wishes to adjust the reserve deposits. See paragraph 2.06.8 of this chapter. 2.06-1 The U.S. Department of Energy (DOE) and the U.S. Department of Housing and Urban Development (HUD) have partnered to expand the Better Buildings Challenge (Challenge) to the multifamily residential sector. The Challenge will now support residential, as well as, commercial and industrial building owners by providing technical assistance and proven solutions to energy efficiency. The project also provides a forum for matching Partners and Allies to enhance collaboration and problem solving in energy efficiency. Participating residential building owners and managers will commit to reducing energy consumption by at least 20 percent over 10 years, which can lead to an annual energy savings of almost 350 trillion Btu. The expansion of the Better Buildings Challenge project is part of President Obama's Climate Action Plan, and recognizes the role that increased energy efficiency can
1 $ $ 2 $ $ The type of tenant-paid utilities covered by the utility allowance are: The following rate increases/decreases in the (past 12 or in the next 12 months) are: We are implementing the following energy conservation initiatives at the property: In support of this request, attached is: (select one) Baseline Analysis (required three years) Factor-Based Analysis (allowed second and third year after baseline analysis is done) Signed by: ____________________________________ Signature ____________________________________ Owner Name ____________________________________ Title _____________________________________ Date Appendix 2-3.H SAMPLE REQUEST TO REVISE MONTHLY RESERVE FOR REPLACEMENT DEPOSITS Project Name: Project Number: Mortgagee: (if applicable) I hereby request a change in the amount of the monthly deposit to the reserve for replacements account from the current amount of $______________ to the revised amount of $____________. Attached is the reserve analysis in support of this request.
Initial Mortgage Amount Current Mortgage Amount Monthly Debt Service Interest Reduction Payment (IRP) Initial Equity Item Guidance Initial Mortgage Amount Enter the initial mortgage amount for Section 221(d)(3), Section 236 and Section 202 loans. Also include any other debt approved by HUD (e.g. Section 223(d) or Section 241(a) loans). Current Mortgage Amount Enter the current amount for the project’s mortgage loans, if applicable. Monthly Debt Service Enter the monthly debt service payment(s) for HUD-approved debt. Interest Reduction Payment (if applicable) For Section 236 projects only, the amount of the IRP for the budgeted year. This can be found in the project’s amortization schedule. Initial Equity (Section 221(d)(3)s and Section 236 properties only) Obtain this from iREMS or form HUD 92264. For non-profit owners, this is $0. However, if the owner subsequently refinanced and formed a for-profit entity for the purpose of using tax credits, use the new equity amount. Make sure you select the correct ownership type above (for-profit if previously a Also review the owner’s submission of Attachment 5 if this is the new owner’s first BBRI request on a Preservation transaction. BOX A: Debt Service Computation This section computes the annual debt service requirement which will be incorporated into the Cash Requirements in Box C and is used to compute the new MARP. Reviewers must use the current debt service in computing the new MARP for projects
Owner’s Requested Rent Increase $ New MARP $ Gross Rent Potential of Authorized Rents $ Additional Requests Included: Utility Allowance Reserve Analysis Commercial Rents/other charges Describe any documentation or initial screening issues encountered. Example: Owner did not provide a cover letter with package. Will direct them to the chapter’s submission requirements in the notification letter. Explain any budget-related issues, including adjustments to the owner’s submitted budget and/or any deviations from the HUD approved budget. Example: filled out budget worksheet by hand, there were three subtotal errors, which were corrected in the HUD approved budget. Will recommend owner use excel-based worksheet. Summarize any adjustments made in the RCW tool to compute the new MARP. Example: Debt service varies due to refinancing... If the authorized rent increase does not the computed rent increase, explain here. Example: Approved a rent increase at the percentage requested by the owner, which was less than the computed increase. Will inform owner of new MARP in notification letter. Summarize results of additional requests, if any: