bb oa workshop presentation-nyc 1107.ppt - …administrative- 6200/6300, utilities-6400, operating...
TRANSCRIPT
_experience the commitment TM
Budget-BasedRent Adjustment Workshop
7/31/2007
© CGI GROUP INC. All rights reserved
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CGI BPS-Government Services
CGI BPS• Government Services Division operates HUD PBCA• Over 220 Employees Servicing PBCA nationwide• Over 15 Years Experience with HUD Housing • Over 7 Years Experience in PBCA• Nation’s Largest PBCA provider
• Process over $1.8 billion in HAP payments annually• Currently holds PBCA contracts in five states
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NYS PBCA…
NYC
AlbanyBuffalo
100% in-state delivery
90% access within 2 hours
932 Contracts
86,319 Units
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NYS PBCA Regional Oversight
Region Area Manager
• Upstate (East/West) Yesnith Serrano
• Brooklyn; Queens; Bronx; Brian AdamsStaten Island
• Manhattan; Long Island; Hugh Harris-Inniss “Metro North” Counties
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NYS PBCA - Philosophy
• HUD and Owners/Agents are clients• Partnership is key• Strive for symbiotic relationship
• PBCA contact is the first person called when issues arise• Preserve Housing Stock• Ensure that owners, agents and HUD’s interests are upheld
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Budget Objective
• HUD/CGI Objective• To Ensure Viability of the Property• To Ensure Owner’s Interest is Protected• To Ensure Sufficient Operating Income Available• To Ensure Decent, Safe, and Sanitary Housing • To Ensure the Secretary’s Objective of Sufficient Housing
Stock
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Guides for Processing
• HUD Handbook 4350.1 Chapter 7 - Processing Budgeted Rent Increase
• HUD Handbook 4350.1 Chapter 4 - Reserve Fund for Replacement
• Section 8 Renewal Guide • HUD Website - www.hud.gov • HUDClips Website - www.hudclips.org• HUD Bookletters• PBCA Website - www.pbcany.com
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Budget-Based vs. OCAF
• Determine what percent increase your property requires
• If eligible for an OCAF, calculate to determine if the adjustment can fulfill your percent increase requirement
• Current OCAF – 5.8%
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Determining Type of Increase
• I should submit a budget if the following are true:• The cost of my services have increased in the last year
substantially enough that an OCAF increase will not cover them
• Property’s Financial Status Changed• Difficulty meeting the monthly financial obligations
• Mortgage• Taxes• Insurance• Operating expenses
• Option 4 Requirements• Lesser-of-Test required at Initial and Subsequent Contract Renewals
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Eligibility
• Review your current contract to determine rent adjustment eligibility
• Pre-MAHRA • Budget-Based Rent Adjustment• Annual Adjustment Factor - AAF
• Post-MAHRA • Budget-Based Rent Adjustment • OCAF
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Rent Adjustments and Contract Renewals
• 180 days before contract/funding expiration, you will receive a reminder letter detail the procedure for submission.
• 150 days before contract/funding expiration, CGI will call if we have not received your initial submission
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Preparing for Budget Submission
• Obtain the required Certifications• Send out the Tenant Notification Letter• Gather Documentation of expenses
• Contracts• Invoices• Receipts
• Send to HUD Pre-Approval Line Items• Sent either to PBCA or HUD – Must be pre-approved
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Complete Package
• Owner’s Cover Letter• Certifications• Budget Worksheet (HUD form 92547-A)• Narrative for line items over 5% OR $500• HUD pre-approval line items• Itemized list of Miscellaneous Line Item• Payroll Analysis• Current Management Certification approved by HUD• Utility Allowance Analysis (if applicable)• Shelter rent tax letter (for NYC)
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Line Items Requiring HUD Pre-Approval
• 6320 Management Fee• 6351 Bookkeeping • 6530 Security • 6310,6330, and 6510 Increases in Payroll • 6900 Service Coordinator• 1320 Reserve for Replacement• Past Due Accounts Payable
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Owner’s Cover Letter
• All BBRA submissions need to include a cover letter in compliance with 4350.1 Chapter 7 (Page 8) that briefly covers all of the following:• Summarizes the reasons why a rent increase is needed • Date the increase will be effective.• Describe the project’s physical condition • Any improvements that have been budgeted for.• Identifies any proposed change in services, equipment or
charges and the reasons for the change.
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Certifications
• Current Management Certification approved by HUD (form HUD-9839-A,B,C, as applicable)
• Copy of Notice to the Residents• Copy of Comments from Residents and Owner Evaluation of Comments• Owner’s Certification confirming that proper notice was provided to
tenants • Owner's Certification Regarding Purchasing Practices and
Reasonableness of Expenses (page 55 appendix 3)• A status report on the project's implementation of its current Energy
Conservation Plan (NYC see Book Letter)• A signed request for an increase in the Reserve for Replacement if such
an increase is contemplated as part of the rent increase request.
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Budget Worksheet
• Completed Budget Worksheet (HUD form 92457-A) • Most recent audited financial figures in the audited column • For any property not insured by HUD, the owner must
certify and submit the financials• Year to date actual expenses in the un-audited column• Projected figures for the requested budget year in the last
column• Form must be signed and dated
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Line Item Increase Over 5% or $500
• An increase > 5% and $500 = an explanation and documentation.
• An increase < 5% but over $500 = a brief statement• An increase > 5% but < $500 = a brief statement• An increase < 5% and < $500 = nothing (except for certain
line items that always require documentation) • New line items not included in the prior year’s budget
requires an explanation and supporting documentation.
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Line Items Requiring Documentation
Provide documentation to support the following line items regardless of an increase. • Payroll Line Items (6310,6330, 6351, 6510, and 6530, ) • Miscellaneous Line Items (6390, 6590, 6790, 6890)• 6520 Contracts• 6720 Property and Liability Insurance—This item requires a copy of the current policy.
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Examples of Supporting Documentation
• Current (past 12 months of data) copies of contracts, invoices, bills or estimates obtained
• Dated notice of an increase from a utility company, insurance provider etc.
• Analysis and backup documentation of how the projected expenses were estimated
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Payroll Analysis
• Analysis should include current salaries, projected salaries, and payroll taxes to support the following accounts, regardless of the amount requested:• 6310 Office Salaries• 6330 Manager/Superintendent Salaries• 6510 Janitor/Cleaning Payroll• 6530 Security Payroll Contract
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Miscellaneous Line Items
Itemized List Required• 6390 Misc. Admin Expenses• 6590 Misc. Operating and Maintenance Expenses• 6790 Misc. Taxes, Lic., Permits and Insurance• 6890 Misc. Financial Expenses• Copies of invoices may be requested for a substantial
increase.
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Organization of Submission
• Owners Cover Letter• Budget Narrative• Budget Worksheet (HUD form 92547-A)• All Applicable Certifications• Documentation organized in accordance with the Budget
Worksheet Line Items• Should be in a binder, tabbed, etc. • Approvals from HUD• Appendix 5 (Recommended)• UA (if applicable)• Tenant Comments (if applicable)
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Common Errors
• Not submitting packages at least 120 days before contract or funding expiration date.
• Cover letter does not include all correct verbiage• Certification documents not signed, dated or completely filled in by the authorized individual.
• Not providing a complete tenant notification notice with a 30 day tenant comment period
• Not including the correct Attachment 3 worksheet with a contract renewal submission
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Common Errors
• Knowing when an RCS is required and submitting it to CGI (Section 8 Renewal Guide)
• Missing Utility Allowance Analysis and supporting documentation
• Requesting an increase to the Replacement Reserve without submitting to HUD the Capital Needs Assessment
• Service Coordinator not properly listed in line 6900 or approval from HUD has not been obtained
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Contract/Funding Renewal Reminders
• 180 days before contract/funding expiration, you will receive a reminder letter detailing the procedure for submission
• 150 days before contract/funding expiration, if we have not received your initial submission the Contract Specialist will place a follow up phone call
• CGI will continue to follow up regularly on the status of the submission
• If contract/funding expires prior to your submission, CGI refers you to HUD for non-compliance
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Review for Complete Package
• Review eligibility and completeness• Refer to the CGI Complete Package Checklist handout
• Contract Specialist communicates with owner/agent regarding additional information
• CGI contacts HUD on pre-approval line items• The package is not complete until the pre-approval line items have been approved by HUD
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Budget Analysis
• Reasonableness• Audited vs. Owner’s Proposed• Analyzing Documentation• Contracts vs. Invoices• Tenant Comments
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Over 5% Rent Increase
• Any rent adjustment increase over 5% requires HUD pre-approval
• The package is sent to HUD for additional review and approval
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Preliminary Approval Package
• Preliminary approval letter• Rent Adjustment approved percentage with new rents• Detail on adjusted budget line items• Utility Allowance approval• Provides the owner/agent the opportunity to appeal the
decision
• Rent Schedules & Contracts• Need to be executed by owner or authorized signatory • Do not voucher for the new rents until a final package is
received with CGI signatures
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Final Approval Package
Funding is reserved and executed rent schedules and contracts have been received from the ownerCGI will forward the following
• A final approval letter detailing the rent increase and implementation date
• A final executed rent schedule and contract
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Owner/Agent Responsibility During Processing
• Respond quickly to any additional information requests
• Review Contract/Rent Schedule when sent to you for signature, be sure it matches your intended request
• Sign Contracts/Rent Schedules and send them back to CGI as quickly as possible
• Implement New Rents once you receive the final executed rent schedules
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Appeals
• 1st Level – CGI• submit within 30 days of the date on the preliminary letter
• 2nd Level - HUD• submit within 30 days of the date on the CGI appeal
response letter to Pattie Slaton, CAOM, HUD NYCDept of HUD26 Federal PlazaSuite 3214New York, NY 10278
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Purpose
•Better Understanding of Processing Requirements
•Accurately propose an increase percentage when submitting a Budget Based Rent Adjustment
•Full understanding of PBCA rent determinations upon notification
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Budget Based Rent Adjustment Misconception
Common Misconception
As an owner/agent (CGI) I recommend (calculates) an increase percentage based on the difference
between my current rent potential and my total cash requirements…
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Budget Based Rent Adjustment Requirements
Regulatory Requirements
As an owner/agent (CGI) I recommend (calculates) an increase percentage based on considerations of
debt service, distribution, management fee percentage, vacancy factors, other income, shelter
rent tax, etc according to regulations and as outlined in the Appendix 5
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Basic Calculation Methodology for Budget Based Rent Adjustments
1. Calculate Allowed Expenses1. (Administrative- 6200/6300, Utilities-6400, Operating &
Maintenance-6500, Taxes & Insurance-6700, Nursing Home/Assisted Living, etc - 6900)
2. Calculate Reserve for Replacement, Debt Service, Returns and Management Fees
3. Calculate Total Cash requirement by adding RfR, Debt Service & Returns into Allowed Expenses
4. Calculate Rent Potential by adding Mgt Fees to Total Cash requirement.
5. Derive an Increase % based on current Rent Potential and newly calculated Rent Potential
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What is the purpose of the appendix 5?
• A – Computation of Debt Service• B – Distribution Computation • C – Total Cash Computation• D – Calculation of Management & Vacancy Factors• E – Rent Potential Computation • F – Increase Percentage Calculation • G – Calculation of Market Rent Potential/Ratio• H – Unit Rent Computations
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Please refer to…
• Sample Budget Worksheet (92547-A)
• Blank Appendix 5 (4350.1)
• Sample Rent Schedule
• Department of Housing Preservation and Development “Shelter Rent Certification” Letter
• Power Point Slide Notes
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Header Box
• PROJECT NAME ___________ FHA #________ DATE ____•• MANAGEMENT AGENT __________ FEE __________ (Capped Y/N)__•• MORTGAGE ___________ REPLACEMENT COST ___(use mortgage amount if unknown)
(236, 221(d)(3) and 202) OR APPRAISED VALUE ____(207, 221(d)(4), 231)•• MODIFIED MORTGAGE (Y/N) ______ UNDER WORKOUT (Y/N) ___________• (If yes) Debt service ________ If yes w/o Payment ____________• (P & I & MIP)•• Ending Date ___/___/____•• INITIAL EQUITY ____________ DEBT SERVICE RATE _________• (If NP, Total Initial Equity = 0) (Line 5d 2264A)• 236 & 221(d)(3) ONLY)
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Box A – Debt Service Computation for all Properties
Purpose of Box A:
To calculate Debt Service that will later be added to Allowed Expenses in Box C.
*Please Note: Debt is added in Box C as Financial Expenses-6800 are excluded from initial calculation of Allowed Expenses*
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Box A – Debt Service Computation for all Properties
•• BOX A DEBT SERVICE COMPUTATION
_________________________________________________________
• 236 = Mortgage x .03034273 =___________
• 221(d)(3) = Mortgage x Debt Service Rate =_________________
• 207/231 = Replacement Cost x Debt Service Rate =___________(Replacement Cost is new appraised cost)
• 202/207/221/231 = (Replacement Cost + Working Capital) xDebt Service Rate =___________
• (Projects not deregulated) Working Capital = 2 percent mortgage
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Box A - Processing Consideration for 202’s
•• 202/207/221/231 = (Replacement Cost + Working Capital) x• Debt Service Rate ________• (Projects not deregulated)• Working Capital = 2 percent mortgage
• Note: Appendix 5 erroneously calls for 2% Working Capital for 202’s. HUD has provided guidance that 2% is to be accounted for in Box C line titled “Return Net Income”
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Box B – Distribution Computation
Purpose of Box B:
To calculate Net Income Reserve (non-profits) or Return on Distribution (profit) that will later
be added in Box C
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Box B – Distribution Computation
• _________________________________________________________• BOX B DISTRIBUTION COMPUTATION• _________________________________________________________
• 236/221(d)(3) = Initial Equity x .06 ________________________• 207/231/221(d)(4) = Allowance calculated in conjunction with• Debt Service•• INCOME RESERVE (NON-PROFITS)•• 236 NP = Mortgage Payment x .06393 __________________________• 221(d)(3) NP = Mortgage Payment x .05263 ____________________• _________________________________________________________
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Box C – Rent Potential Computation
Purpose of Box C:
To calculate Total Cash requirement by adding Allowed Expenses to Reserves, Debt Service
and Return/Income Reserve
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Box C – Rent Potential Computation
• __________________________________________________________• BOX C RENT POTENTIAL COMPUTATION•• Allowed Expenses __________________• less Management (________________)•• Plus• Reserves __________________• Debt Service __________________• Return/Net Income Reserve __________________•• Total Cash less Management __________________• __________________________________________________________
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Box C – Rent Potential Computation –reference/formulas
_____________________________________________________• BOX C RENT POTENTIAL COMPUTATION•• Allowed Expenses • (Administrative- 6200/6300, Utilities-6400, Operating & Maintenance-6500,
Taxes & Insurance-6700, Nursing Home, etc - 6900)(-)
• less Management (Line Item 6320 – Management Fee Expense)
(+)• Plus• Reserves (Line Item 1320 – Annual Reserve for Replacement Dep. Required)• Debt Service (Box A above)• Return/Net Income Reserve (Box B above OR 2% of D.S. if 202)
(=)• Total Cash less Management ______________
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Box D – Management/Vacancy Factor
Purpose of Box D:
To calculate the Management and Vacancy Factors based on property type and
Management Certification; to be used later in Box E
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Box D – Management/Vacancy Factor
• ________________________________________________• BOX D MANAGEMENT/VACANCY FACTOR•• Authorized Management Fee _______________% (1)• Allowed Vacancy Percent __________________ %•• Factor = (1 - Management Fee) x (1 - Vacancy) = •• (1) PUPM Cap (Y/N) __________________• If yes Fee = 0• Allowed PUPM __________________• ________________________________________________
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Box D – Management/Vacancy Factor
• ________________________________________________• BOX D MANAGEMENT/VACANCY FACTOR•• Authorized Management Fee __(1-Management Fee%)__% (1)• Allowed Vacancy Percent ____(1-Allowed %)_________ %• Allowed % = 0%• Factor = (1 - Management Fee) x (1 - Vacancy) = •• (1) PUPM Cap (Y/N) _____(See Management Certification)_______• If yes Fee = 0• Allowed PUPM ____(See Management Certification)_________• ________________________________________________
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Box E – Rent Potential Computation
Purpose of Box E:
To derive Rent Potential based on Total Cash requirement and Management and
Vacancy Factors
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Box E – Rent Potential Computation
• ________________________________________________• BOX E
• RENT POTENTIAL = Total Cash divided by Factor (Box D above) =
(No PUPM Cap)
• RENT POTENTIAL (PUPM Cap) = Total Cash/Factor + (PUPM Management
Fee x 12 x Number of Units)• _______________________________________________
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Box E – Rent Potential Computation
• ________________________________________________• BOX E
• RENT POTENTIAL = Total Cash (Box C – “Total Cash Less Management”) divided by Factor (Box D) =
*(No PUPM Cap)
• RENT POTENTIAL (PUPM Cap) = Total Cash (Box C – “Total Cash Less Management”) /Factor (Box D*) + (PUPM Management
Fee x 12 x Number of Units)• _______________________________________________
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Box F – Percentage Increase Calculation
Purpose of Box F:
To reduce Rent Potential by amount of income from other sources and to derive an Increase
Percentage
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Box F – Percentage Increase Calculation
_________________________________________________________________• BOX F•
• 1. RENT POTENTIAL ________________• 2. Less Other Income (______________)• 3. Authorized Potential _______________• 4. Monthly Potential (Authorized• Potential/12) __________________•
• 5. Percent Increase (Authorized Potential - Current• Potential divided by Current Potential• ______________%•
________________________________________________________________
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Box F – Percentage Increase Calculation
_________________________________________________________________• BOX F• 1. RENT POTENTIAL (Box E)
(-)• 2. Less Other Income • (5140: Stores; and Commercial + 5170: Garage and Parking + 5410: Financial
Revenue + 5910: Laundry and Vending)(=)
• 3. Authorized Potential _______________• 4. Monthly Potential (Authorized• Potential/12) __________________• 5. Percent Increase (Authorized Potential - Current• Potential (Current Rent Schedule) divided by Current Potential (Current
Rent Schedule) • ______________%•
________________________________________________________________
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Box G – Market Rent Potential
Purpose of Box G:
To calculate a Market Rent Ratio to be applied to Market Rents in 236 properties
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Box G – Market Rent Potential
• BOX G MARKET RENT POTENTIAL (236's ONLY)• _________________________________________________________________•
• Annual Subsidy (Interest Reduction Payment) __________________•
• Authorized Annual Rent Potential (BOX F) __________________•
• New Annual Market Rent Potential __________________•
• Market Rent Ratio (New Annual Market Rent• Potential Divided by• Authorized Annual Rent• Potential BOX F ) __________________•
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Box G – Market Rent Potential
• BOX G MARKET RENT POTENTIAL (236's ONLY)• _________________________________________________________________•
• Annual Subsidy (Interest Reduction Payment) __________________(+)
• Authorized Annual Rent Potential (BOX F) __________________(=)
• New Annual Market Rent Potential __________________•
• Market Rent Ratio (New Annual Market Rent Potential (Above) Divided by• Authorized Annual Rent Potential (BOX F)
(=)• _____________%•
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Box H - Unit Rent Computations
Purpose of Box H:
To calculate new Contract and Market rents based on the derived Increase Percentage
and Market Rent Ratio
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Box H - Unit Rent Computations
•• BOX H UNIT RENT COMPUTATIONS• ________________________________________________________________•• Unit type• ________________________________________________________________•• Current Unit Rent• ________________________________________________________________•• % Increase• ________________________________________________________________•• Authorized Unit• Rent• ________________________________________________________________•• % Increase• _________________________________________________________________•• Authorized Unit• Rent• _________________________________________________________________
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Department of Housing Preservation and Development “Shelter Rent Certification” Letter
http://nycserv.nyc.gov/NYCServInquiry/NYCSERVMain
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How does HPD Estimate Shelter Rent Tax?
(Current Rent Potential - Initial Rent Potential)(*)
Shelter Rent Tax Rate (+)
Minimum Shelter Rent Tax (=)
Estimated Shelter Rent Tax
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HPD SRT Estimate Example
(827,520 – 580,580) = 246,960(*)25% = 61,735(+)
24,020 (=)
85,755
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3 data components of SRT Calculation for BBRA’s
• Line 6710 (92547-A)
• Rent Potential (Appendix 5)
• Shelter Rent Tax Rate (Appendix 5)
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3 Scenarios to consider for “Line Item 6710” use only one of the following amounts…
1. HPD Letter lists the current rent potential and tax expense
*Current S.R.T. amount based on rents in effect during the most recent fiscal year as noted*
2. HPD Letter is NOT available / Letter is outdated*Amount listed on previous year’s AFS*
3. HPD Letter DOES NOT list the current rent potential and tax expense
*Minimum Shelter Rent Tax Expense noted*
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3 Scenarios to consider for “Rent Potential”use only one of the following amounts…
1. HPD Letter lists the current rent potential and tax expense
*Amount noted as Contract Rents actually in effect for most recent fiscal year*
2. HPD Letter is NOT available / Letter is outdated*Amount listed on current Rent Schedule*
3. HPD Letter DOES NOT list the current rent potential and tax expense
* Amount noted as Contract Rents that were in effect for initial of average date of occupancy*
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What to use for “Shelter Rent Tax Rate”
• Noted on the letter as the percentage (of the difference between the current and initial contract rents) to be added to the minimum shelter rent tax.
• Typically 25%
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BBRA - Shelter Rent Tax Formula
Authorized Rent Potential (-)
Rent Potential (*)
(Tax Rate/1-Tax Rate) (=)
Authorized Rent Potential for SRT(+)
Authorized Rent Potential (Based on Cash Needs)(=)
Final Authorized Rent Potential
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BBRA - Shelter Rent Tax Formula
Authorized Rent Potential (Box F #3)(-)
Rent Potential (See Instructions Above)(*)
(Tax Rate(See Instructions Above)/1-Tax Rate(See Instructions Above))
(=)Authorized Rent Potential for SRT
(+)Authorized Rent Potential (Box F #3)
(=)Final Authorized Rent Potential
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Box F – Percentage Increase Calculation
• ________________________________________________________________•• BOX F•• 1. RENT POTENTIAL ______________• 2. Less Other Income (______________)• 3. Authorized Potential Final Authorized Rent Potential• 4. Monthly Potential (Authorized• Potential/12) __________________•• 5. Percent Increase (Authorized Potential - Current• Potential divided by Current Potential• ______________%•
________________________________________________________________
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ExerciseCalculate a Budget Based increase
percentage for the following 202 property:
• Property: XYZ Apartments • Management Fee: 5.97% - Not Capped• Mortgage Amount: 3,529,800• Debt Service Rate: 0.09487927• Sample Budget Worksheet (92547-A)• Sample Rent Schedule• Department of HPD “Shelter Rent Certification” Letter
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Header Box
• PROJECT NAME ______XYZ Apartments_____ FHA #_____012-EHXXX___ DATE __10/24/07__
•• MANAGEMENT AGENT ____XYZ Mgt.______ FEE ____5.97%______ (Capped Y/N)_N_•• MORTGAGE ______3,529,800_____ REPLACEMENT COST ___3,529,800______• (236, 221(d)(3) and 202) OR APPRAISED VALUE• (207, 221(d)(4), 231)•• MODIFIED MORTGAGE (Y/N) ______ UNDER WORKOUT (Y/N) ___________• (If yes) Debt service ________ If yes w/o Payment ____________• (P & I & MIP)•• Ending Date ___/___/____•• INITIAL EQUITY ____________ DEBT SERVICE RATE ____0.09487927______• (If NP, Total Initial Equity = 0) (Line 5d 2264A)• 236 & 221(d)(3) ONLY)
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Header Box
• PROJECT NAME ______XYZ Apartments_____ FHA #_____012-EHXXX___ DATE __10/24/07__
•• MANAGEMENT AGENT ____XYZ Mgt.______ FEE ____5.97%______ (Capped Y/N)_N_•• MORTGAGE ______3,529,800_____ REPLACEMENT COST ___3,529,800______• (236, 221(d)(3) and 202) OR APPRAISED VALUE• (207, 221(d)(4), 231)•• MODIFIED MORTGAGE (Y/N) ______ UNDER WORKOUT (Y/N) ___________• (If yes) Debt service ________ If yes w/o Payment ____________• (P & I & MIP)•• Ending Date ___/___/____•• INITIAL EQUITY ____________ DEBT SERVICE RATE ____0.09487927______• (If NP, Total Initial Equity = 0) (Line 5d 2264A)• 236 & 221(d)(3) ONLY)
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Header Box
• PROJECT NAME ______XYZ Apartments_____ FHA #_____012-EHXXX___ DATE __10/24/07__
•• MANAGEMENT AGENT ____XYZ Mgt.______ FEE ____5.97%______ (Capped Y/N)_N_•• MORTGAGE ______3,529,800_____ REPLACEMENT COST ___3,529,800______• (236, 221(d)(3) and 202) OR APPRAISED VALUE• (207, 221(d)(4), 231)•• MODIFIED MORTGAGE (Y/N) ______ UNDER WORKOUT (Y/N) ___________• (If yes) Debt service ________ If yes w/o Payment ____________• (P & I & MIP)•• Ending Date ___/___/____•• INITIAL EQUITY ____________ DEBT SERVICE RATE ____0.09487927______• (If NP, Total Initial Equity = 0) (Line 5d 2264A)• 236 & 221(d)(3) ONLY)
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Header Box
• PROJECT NAME ______XYZ Apartments_____ FHA #_____012-EHXXX___ DATE __10/24/07__
•• MANAGEMENT AGENT ____XYZ Mgt.______ FEE ____5.97%______ (Capped Y/N)_N_•• MORTGAGE ______3,529,800_____ REPLACEMENT COST ___3,529,800______• (236, 221(d)(3) and 202) OR APPRAISED VALUE• (207, 221(d)(4), 231)•• MODIFIED MORTGAGE (Y/N) ______ UNDER WORKOUT (Y/N) ___________• (If yes) Debt service ________ If yes w/o Payment ____________• (P & I & MIP)•• Ending Date ___/___/____•• INITIAL EQUITY ____________ DEBT SERVICE RATE ____0.09487927______• (If NP, Total Initial Equity = 0) (Line 5d 2264A)• 236 & 221(d)(3) ONLY)
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Header Box
• PROJECT NAME ______XYZ Apartments_____ FHA #_____012-EHXXX___ DATE __10/24/07__
•• MANAGEMENT AGENT ____XYZ Mgt.______ FEE ____5.97%______ (Capped Y/N)_N_•• MORTGAGE ______3,529,800_____ REPLACEMENT COST ___3,529,800______• (236, 221(d)(3) and 202) OR APPRAISED VALUE• (207, 221(d)(4), 231)•• MODIFIED MORTGAGE (Y/N) ______ UNDER WORKOUT (Y/N) ___________• (If yes) Debt service ________ If yes w/o Payment ____________• (P & I & MIP)•• Ending Date ___/___/____•• INITIAL EQUITY ____________ DEBT SERVICE RATE ____0.09487927______• (If NP, Total Initial Equity = 0) (Line 5d 2264A)• 236 & 221(d)(3) ONLY)
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Box A – Debt Service Computation for all Properties
• BOX A DEBT SERVICE COMPUTATION•
________________________________________________________________•• 236 = Mortgage x .03034273 _______________________________•• 221(d)(3) = Mortgage x Debt Service Rate _________________•• 207/231 = Replacement Cost x Debt Service Rate ___________• (Replacement Cost is new appraised cost)•• 202/207/221/231 = (Replacement Cost + Working Capital) x• Debt Service Rate ____334,905____• (Projects not deregulated)•• Working Capital = 2 percent mortgage
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Box A – Debt Service Computation for all Properties
• BOX A DEBT SERVICE COMPUTATION•
________________________________________________________________•• 236 = Mortgage x .03034273 _______________________________•• 221(d)(3) = Mortgage x Debt Service Rate _________________•• 207/231 = Replacement Cost x Debt Service Rate ___________• (Replacement Cost is new appraised cost)•• 202/207/221/231 = (Replacement Cost + Working Capital) x• Debt Service Rate ____334,905____• (Projects not deregulated)•• Working Capital = 2 percent mortgage
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Box B – Distribution Computation
• _______________________________________________________• BOX B DISTRIBUTION COMPUTATION• _________________________________________________________•• 236/221(d)(3) = Initial Equity x .06 ________________________• 207/231/221(d)(4) = Allowance calculated in conjunction with• Debt Service•• INCOME RESERVE (NON-PROFITS)•• 236 NP = Mortgage Payment x .06393 __________________________• 221(d)(3) NP = Mortgage Payment x .05263 ____________________• _________________________________________________________
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Box C – Rent Potential Computation
• _________________________________________________________• BOX C RENT POTENTIAL COMPUTATION•• Allowed Expenses ______552,872____________• less Management (______50,000__________)•• Plus• Reserves _________15,838___________• Debt Service ________334,905____________• Return/Net Income Reserve ________6,698*__________•• Total Cash less Management ______860,313____________• _________________________________________________________
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Box C – Rent Potential Computation
• _________________________________________________________• BOX C RENT POTENTIAL COMPUTATION•• Allowed Expenses ______552,872____________• less Management (______50,000__________)•• Plus• Reserves _________15,838___________• Debt Service ________334,905____________• Return/Net Income Reserve ________6,698*__________•• Total Cash less Management ______860,313____________• _________________________________________________________
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Box C – Rent Potential Computation
• _________________________________________________________• BOX C RENT POTENTIAL COMPUTATION•• Allowed Expenses ______552,872____________• less Management (______50,000__________)•• Plus• Reserves _________15,838___________• Debt Service ________334,905____________• Return/Net Income Reserve ________6,698*__________•• Total Cash less Management ______860,313____________• _________________________________________________________
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Box C – Rent Potential Computation
• _________________________________________________________• BOX C RENT POTENTIAL COMPUTATION•• Allowed Expenses ______552,872____________• less Management (______50,000__________)•• Plus• Reserves _________15,838___________• Debt Service ________334,905____________• Return/Net Income Reserve ________6,698*__________•• Total Cash less Management ______860,313____________• _________________________________________________________
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Box C – Rent Potential Computation
• _________________________________________________________• BOX C RENT POTENTIAL COMPUTATION•• Allowed Expenses ______552,872____________• less Management (______50,000__________)•• Plus• Reserves _________15,838___________• Debt Service ________334,905____________• Return/Net Income Reserve ________6,698*__________•• Total Cash less Management ______860,313____________• _________________________________________________________
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Box C – Rent Potential Computation
• _________________________________________________________• BOX C RENT POTENTIAL COMPUTATION•• Allowed Expenses ______552,872____________• less Management (______50,000__________)•• Plus• Reserves _________15,838___________• Debt Service ________334,905____________• Return/Net Income Reserve ________6,698*__________•• Total Cash less Management ______860,313____________• _________________________________________________________
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Box C – Rent Potential Computation
• _________________________________________________________• BOX C RENT POTENTIAL COMPUTATION•• Allowed Expenses ______552,872____________• less Management (______50,000__________)•• Plus• Reserves _________15,838___________• Debt Service ________334,905____________• Return/Net Income Reserve ________6,698*__________•• Total Cash less Management ______860,313____________• _________________________________________________________
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Box D – Management/Vacancy Factor
• __________________________________________________________• BOX D MANAGEMENT/VACANCY FACTOR•• Authorized Management Fee _____5.97__________% (1)• Allowed Vacancy Percent _______100____________ %•• Factor = (1 - Management Fee) x (1 - Vacancy) 94.03%•• (1) PUPM Cap (Y/N) _________N_________• If yes Fee = 0• Allowed PUPM _________44.00_________• _________________________________________________________
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Box D – Management/Vacancy Factor
• __________________________________________________________• BOX D MANAGEMENT/VACANCY FACTOR•• Authorized Management Fee _____5.97__________% (1)• Allowed Vacancy Percent _______100____________ %•• Factor = (1 - Management Fee) x (1 - Vacancy) = 94.03%•• (1) PUPM Cap (Y/N) _________N_________• If yes Fee = 0• Allowed PUPM _________44.00_________• _________________________________________________________
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Box D – Management/Vacancy Factor
• __________________________________________________________• BOX D MANAGEMENT/VACANCY FACTOR•• Authorized Management Fee _____5.97__________% (1)• Allowed Vacancy Percent _______0____________ %•• Factor = (1 - Management Fee) x (1 - Vacancy) = 94.03%•• (1) PUPM Cap (Y/N) _________N_________• If yes Fee = 0• Allowed PUPM _________44.00_________• _________________________________________________________
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Box D – Management/Vacancy Factor
• __________________________________________________________• BOX D MANAGEMENT/VACANCY FACTOR•• Authorized Management Fee _____5.97__________% (1)• Allowed Vacancy Percent _______0____________ %•• Factor = (1 - Management Fee) x (1 - Vacancy) = 94.03%•• (1) PUPM Cap (Y/N) _________N_________• If yes Fee = 0• Allowed PUPM _________44.00_________• _________________________________________________________
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Box D – Management/Vacancy Factor
• __________________________________________________________• BOX D MANAGEMENT/VACANCY FACTOR•• Authorized Management Fee _____5.97__________% (1)• Allowed Vacancy Percent _______0____________ %•• Factor = (1 - Management Fee) x (1 - Vacancy) = 94.03%•• (1) PUPM Cap (Y/N) _________N_________• If yes Fee = 0• Allowed PUPM _________44.00_________• _________________________________________________________
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Box D – Management/Vacancy Factor
• __________________________________________________________• BOX D MANAGEMENT/VACANCY FACTOR•• Authorized Management Fee _____5.97__________% (1)• Allowed Vacancy Percent _______0____________ %•• Factor = (1 - Management Fee) x (1 - Vacancy) = 94.03%•• (1) PUPM Cap (Y/N) _________N_________• If yes Fee = 0• Allowed PUPM _________NA_________• _________________________________________________________
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Box E – Rent Potential Computation
• ________________________________________________• BOX E•• RENT POTENTIAL = Total Cash divided by Factor (Box D above) = • 914,935•• (No PUPM Cap)•• RENT POTENTIAL (PUPM Cap) = Total Cash/Factor + (PUPM
Management• Fee x 12 x Number of Units)• _______________________________________________
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Box E – Rent Potential Computation
• ________________________________________________• BOX E•• RENT POTENTIAL = Total Cash divided by Factor (Box D above) = • 914,935 •• (No PUPM Cap)•• RENT POTENTIAL (PUPM Cap) = Total Cash/Factor + (PUPM
Management• Fee x 12 x Number of Units)• _______________________________________________
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Box F – Percentage Increase Calculation
• _________________________________________________________________•
• BOX F•
• 1. RENT POTENTIAL ______914,935__________• 2. Less Other Income (_______1,800________)• 3. Authorized Potential ____913,135____________• 4. Monthly Potential (Authorized• Potential/12) ______ 76,095___________•
• 5. Percent Increase (Authorized Potential - Current• Potential divided by Current Potential• ____________10.35__%•
__________________________________________________________________
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Box F – Percentage Increase Calculation
• _________________________________________________________________•
• BOX F•
• 1. RENT POTENTIAL ______914,935__________• 2. Less Other Income (_______1,800________)• 3. Authorized Potential ____913,135____________• 4. Monthly Potential (Authorized• Potential/12) ______ 76,095___________•
• 5. Percent Increase (Authorized Potential - Current• Potential divided by Current Potential• ____________10.35__%•
__________________________________________________________________
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Box F – Percentage Increase Calculation
• _________________________________________________________________•
• BOX F•
• 1. RENT POTENTIAL ______914,935__________• 2. Less Other Income (_______1,800________)• 3. Authorized Potential ____913,135____________• 4. Monthly Potential (Authorized• Potential/12) ______ 76,095___________•
• 5. Percent Increase (Authorized Potential - Current• Potential divided by Current Potential• ____________10.35__%•
__________________________________________________________________
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Box F – Percentage Increase Calculation
• _________________________________________________________________•
• BOX F•
• 1. RENT POTENTIAL ______914,935__________• 2. Less Other Income (_______1,800________)• 3. Authorized Potential ____913,135____________• 4. Monthly Potential (Authorized• Potential/12) ______ 76,095___________•
• 5. Percent Increase (Authorized Potential - Current• Potential divided by Current Potential• ____________10.35__%•
__________________________________________________________________
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Box F – Percentage Increase Calculation
• _________________________________________________________________•
• BOX F•
• 1. RENT POTENTIAL ______914,935__________• 2. Less Other Income (_______1,800________)• 3. Authorized Potential ____913,135____________• 4. Monthly Potential (Authorized• Potential/12) ______ 76,095___________•
• 5. Percent Increase (Authorized Potential - Current• Potential divided by Current Potential• ____________10.35__%•
__________________________________________________________________
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Box F – Percentage Increase Calculation
• _________________________________________________________________•
• BOX F•
• 1. RENT POTENTIAL ______914,935__________• 2. Less Other Income (_______1,800________)• 3. Authorized Potential ____913,135____________• 4. Monthly Potential (Authorized• Potential/12) ______ 76,095___________•
• 5. Percent Increase (Authorized Potential - Current• Potential divided by Current Potential• ____________10.35__%•
__________________________________________________________________
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Box G – Market Rent Potential
• _______________________________________________________________• BOX G MARKET RENT POTENTIAL (236's ONLY)
________________________________________________________________•
• Annual Subsidy (Interest Reduction Payment) __________________•
• Authorized Annual Rent Potential (BOX F) __________________•
• New Annual Market Rent Potential __________________•
• Market Rent Ratio (New Annual Market Rent• Potential Divided by• Authorized Annual Rent• Potential BOX F ) __________________• ____________________________________________________________
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Box H - Unit Rent Computations
•• BOX H UNIT RENT COMPUTATIONS• ________________________________________________________________•• Unit type• ______________________________Efficiency______________1 BR_____________•• Current Unit Rent• _________________________________905________________1,000_____________•• % Increase• ________________________________10.35%______________10.35%____________•• Authorized Unit• Rent• ________________________________1,030________________1,138____________•• % Increase• _________________________________________________________________•• Authorized Unit• Rent• _________________________________________________________________
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Box H - Unit Rent Computations
•• BOX H UNIT RENT COMPUTATIONS• ________________________________________________________________•• Unit type• ______________________________Efficiency______________1 BR_____________•• Current Unit Rent• _________________________________905________________1,000_____________•• % Increase• ________________________________10.35%______________10.35%____________•• Authorized Unit• Rent• ________________________________1,030________________1,138____________•• % Increase• _________________________________________________________________•• Authorized Unit• Rent• _________________________________________________________________
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Box H - Unit Rent Computations
•• BOX H UNIT RENT COMPUTATIONS• ________________________________________________________________•• Unit type• ______________________________Efficiency______________1 BR_____________•• Current Unit Rent• _________________________________905________________1,000_____________•• % Increase• ________________________________10.35%______________10.35%____________•• Authorized Unit• Rent• ________________________________1,030________________1,138____________•• % Increase• _________________________________________________________________•• Authorized Unit• Rent• _________________________________________________________________
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Box H - Unit Rent Computations
•• BOX H UNIT RENT COMPUTATIONS• ________________________________________________________________•• Unit type• ______________________________Efficiency______________1 BR_____________•• Current Unit Rent• _________________________________905________________1,000_____________•• % Increase• ________________________________10.35%______________10.35%____________•• Authorized Unit• Rent• ________________________________999________________1,104____________•• % Increase• _________________________________________________________________•• Authorized Unit• Rent• _________________________________________________________________
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BBRA Shelter Rent Tax Formula
Authorized Rent Potential (913,135)(-)
Rent Potential (827,520)(=)
85,615(*)
[Tax Rate(.25)/1-Tax Rate(.75)] = (0.3333)(=)
Authorized Rent Potential for SRT (28,535)(+)
Authorized Rent Potential (913,135)(=)
Final Authorized Rent Potential (941,670)
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BBRA Shelter Rent Tax Formula
Authorized Rent Potential (913,135)(-)
Rent Potential (827,520)(=)
85,615(*)
[Tax Rate(.25)/1-Tax Rate(.75)] = (0.3333)(=)
Authorized Rent Potential for SRT (28,535)(+)
Authorized Rent Potential (913,135)(=)
Final Authorized Rent Potential (941,670)
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BBRA Shelter Rent Tax Formula
Authorized Rent Potential (913,135)(-)
Rent Potential (827,520)(=)
85,615(*)
[Tax Rate(.25)/1-Tax Rate(.75)] = (0.3333)(=)
Authorized Rent Potential for SRT (28,535)(+)
Authorized Rent Potential (913,135)(=)
Final Authorized Rent Potential (941,670)
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BBRA Shelter Rent Tax Formula
Authorized Rent Potential (913,135)(-)
Rent Potential (827,520)(=)
85,615(*)
[Tax Rate(.25)/1-Tax Rate(.75)] = (0.3333)(=)
Authorized Rent Potential for SRT (28,535)(+)
Authorized Rent Potential (913,135)(=)
Final Authorized Rent Potential (941,670)
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BBRA Shelter Rent Tax Formula
Authorized Rent Potential (913,135)(-)
Rent Potential (827,520)(=)
85,615(*)
[Tax Rate(.25)/1-Tax Rate(.75)] = (0.3333)(=)
Authorized Rent Potential for SRT (28,535)(+)
Authorized Rent Potential (913,135)(=)
Final Authorized Rent Potential (941,670)
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BBRA Shelter Rent Tax Formula
Authorized Rent Potential (913,135)(-)
Rent Potential (827,520)(=)
85,615(*)
[Tax Rate(.25)/1-Tax Rate(.75)] = (0.3333)(=)
Authorized Rent Potential for SRT (28,535)(+)
Authorized Rent Potential (913,135)(=)
Final Authorized Rent Potential (941,670)
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BBRA Shelter Rent Tax Formula
Authorized Rent Potential (913,135)(-)
Rent Potential (827,520)(=)
85,615(*)
[Tax Rate(.25)/1-Tax Rate(.75)] = (0.3333)(=)
Authorized Rent Potential for SRT (28,535)(+)
Authorized Rent Potential (913,135)(=)
Final Authorized Rent Potential (941,670)
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BBRA Shelter Rent Tax Formula
Authorized Rent Potential (913,135)(-)
Rent Potential (827,520)(=)
85,615(*)
[Tax Rate(.25)/1-Tax Rate(.75)] = (0.3333)(=)
Authorized Rent Potential for SRT (28,535)(+)
Authorized Rent Potential (913,135)(=)
Final Authorized Rent Potential (941,670)
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Box F – Percentage Increase Calculation
•__________________________________________________________________
•• BOX F•• 1. RENT POTENTIAL _______________• 2. Less Other Income (_______________)• 3. Authorized Potential ____941,670____________• 4. Monthly Potential (Authorized• Potential/12) ______78,472___________•• 5. Percent Increase (Authorized Potential - Current• Potential divided by Current Potential• ____________13.79__%•
__________________________________________________________________
•
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Box F – Percentage Increase Calculation
•__________________________________________________________________
•• BOX F•• 1. RENT POTENTIAL _______________• 2. Less Other Income (_______________)• 3. Authorized Potential ____941,670____________• 4. Monthly Potential (Authorized• Potential/12) ______78,472___________•• 5. Percent Increase (Authorized Potential - Current• Potential divided by Current Potential• ____________13.79__%•
__________________________________________________________________
•
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Box F – Percentage Increase Calculation
•__________________________________________________________________
•• BOX F•• 1. RENT POTENTIAL _______________• 2. Less Other Income (_______________)• 3. Authorized Potential ____941,670____________• 4. Monthly Potential (Authorized• Potential/12) ______78,472___________•• 5. Percent Increase (Authorized Potential - Current• Potential divided by Current Potential• ____________13.79__%•
__________________________________________________________________
•
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Box F – Percentage Increase Calculation
•__________________________________________________________________
•• BOX F•• 1. RENT POTENTIAL _______________• 2. Less Other Income (_______________)• 3. Authorized Potential ____941,670____________• 4. Monthly Potential (Authorized• Potential/12) ______78,472___________•• 5. Percent Increase (Authorized Potential - Current• Potential divided by Current Potential• ____________13.79__%•
__________________________________________________________________
•
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Utility Analysis
• Submission Requirements• Sample Size• Calculations• Effective Date• Approval Determination
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Utility Analysis
• A UA needs to be submitted for any property that has a utility allowance for its tenants.
• A UA must be submitted along with your Contract Renewal or Rent adjustment package each year.
*Code of Federal Regulations 880.610 or 4350.1 Chapter 7 Section 7-24
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What must be included when submitting a Utility Analysis:
• Summary from the owner supporting the proposed change
• The O/A must provide an appropriate sample of utility allowance recommendations
• If O/A is unable to provide appropriate samples a letter must be submitted showing efforts
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Efforts that should be made to retain UA Information:
• 1. Contact Utility Company requesting billing information
• 2. Contact Tenant requesting billing information
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Summary from the O/A Must State the Following:
• Identify the types of utilities covered in the UA (gas, electric, etc.)
• State whether utility rate increases or decreases were implemented in the past 12 months
• State if the rates are expected to change over the next 12 months.
• State how any conservation initiatives will impact consumption.
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Appropriate Samples Must Include the Following:
• Owner submission should show detailed records of the utility charges for each bedroom size under contract for the last 12 months
• Depending on the amount of units under contract, a specific number of samples must be submitted
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UA Sample Requirements
• 1-10 Units for BR size ALL samples must be submitted
• 10-50 units for BR size 10 to 15 samples must be submitted
• 50-100 Units for BR size 20% of the unit samples must be submitted
• Over 100 Units for BR size 15% of the unit samples must be submitted
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If O/A is Unable to Meet Requirements:
• O/A must submit a letter to PBCA demonstrating all efforts made to retain samples• Letter should state and O/A must be able to show:
• 1. Efforts made to retain information from Utility Company
• 2. Efforts made to retain information from Tenant• 3. Vacant unit or unit occupied less than 12 months
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If O/A is Unable to Meet Requirements: (cont)
• Cases where the sample requirements are not met PBCA will use Local Housing Authority Averages for that bedroom size. • O/A should also be attempting to retain this information
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Calculations
• For BR type, CGI will determine the average consumption for each tenant using 12 months of billing documentation.
• The highest and lowest averages for each BR type will be dropped.
• The remaining individual consumption averages will be used to determine the cumulative average for each bedroom type.
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Approval Determination:
• We strongly encourage Owner’s to increase the UA regardless of the % of increase that the calculations show, because it will benefit the tenant.
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Approval Determination:
• If UA Average shows increase of 10% or greater, O/A must request an increase in UA.
• If UA Average shows an increase less than 10%, O/A can request UA to remain the same or increase
• If Average shows a decrease, • Downstate Properties – UA will remain at current• Upstate Properties – UA can be decreased
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Service Coordinator
• Service Coordinators assist elderly individuals and persons with disabilities, living in federally-assisted multifamily housing, to obtain needed supportive services from community agencies. Services are intended to prevent premature and inappropriate institutionalization.
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Service Coordinator Activities
• Provide case management and referral services• Educate residents on available services and benefits on tenancy issues
• Establish links with community agencies• Advocate for residents• Work with resident organizations
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Funding
• Grant Funding• Residual Receipts or Excess Income• Budget-based rent increases
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Use of Grant Funds
• Salary • Fringe Benefits • Quality Assurance• Training • Travel• Creation of Private Office Space• Computer Hardware, Software, and Internet Service• Office Furniture and Supplies
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Eligibility
• Section 202• Section 8 • Section 221(d)(3) below-market interest rate• Section 236 • Eligibility for grant funding is limited to properties designed for the elderly and persons with disabilities
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Budget Requirements
• If the Service Coordinator budget was not previously approved, HUD pre-approval is required.
• One Year Service Coordinator Budget – HUD 91186-A• See sample in attachments
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Reserve for Replacement
• Replacement reserve must be established and maintained in an interest-bearing account to aid in funding extraordinary maintenance and repair and replacement of capital items in order to maintain the financial and physical viability of the property.
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Capital Expenditures vs. Maintenance
• Building components generally tend to fall into two categories: • Those items that are usually considered to be capital items
and eligible for reimbursement from the Reserve Fund for Replacements.
• Those items that are usually considered to be routine maintenance items.
Please see handouts
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Useful Life of an Item
• For some items, the useful life can be far less than its physical life. • High cost of maintenance of an old item• Low efficiency of an old item• Item is outdated according to modern standards• Changing economic conditions (energy crisis, inflation,
changes in consumer tastes)
• Please see handouts
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Useful Life of an Item
• To determine the useful life, we must consider:• Physical and economic factors when estimating the useful
life of an item. • What effect the location and type of the property may have
on the useful life.• Previous experience with the same or similar items.
• Please see handouts
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Recommended Minimum Threshold.
• The main purpose of having a recommended minimum threshold is to have funds available for an emergency or unforeseen contingency.
HUD Handbook 4465.1 REV-2, Valuation Analysis for Project Mortgage Insurance
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Causes for Adjustments to a Recommended Minimum Threshold
• Physical Condition of the Project• Geographical Location• Immediate Replacement Needs• Changes in Replacement Items• Unit composition• Project Size• Urban vs. Rural
• HUD Handbook 4350.1 REV-1 Chapter 4
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Increasing the Reserve amount
• Management Improvement and Operating Plan (MIO Plan)• Non-recurring repair expense• Amounts needed to correct financial deficiencies• Project improvements. Examples:
• restore units that have deteriorated to the point they no longer can be rented;
• correct code violations• pay accounts payable that affect the overall viability of the project
(e.g., delinquent utility bills).
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Increasing the Reserve amount
• Reserve for Replacement Analysis• Years involved• Capital Item Being Replaced• Quantity• Estimated Costs• Estimated Life• Total Estimated Cost to Replace• Annual Funding Requirements
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General Requirements for Requesting Withdrawals
• Written Request• Utilize HUD Form 9250 • Pre-Approval• Reimbursement for completed work• Advances for future work • Recommended withdrawal no more than once quarterly.• Funding issues – borrow funds to keep property in line.
• HUD Handbook 4350.1 REV-1 Chapter 4
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Other Available Income Sources
• Residual Receipts Accounts. • Owner Contributions in the form of equity. • Owner contributions in the form of unsecured debt (loans).
• Funds from private foundations. • Loans or grants from other governmental agencies or private foundations.
• Other available sources as found in HUD Handbook 4350.1 Chapter 1.
• HUD Handbook 4350.1 REV-1 Chapter 4