Multifamily Housing Compliance Monitoring for:
Bond Financed and Low Income Housing Tax Credit Properties

With disciplines in public finance, real estate, and property management, Van Patten & Company is uniquely qualified to assist owners, management companies, syndicators as well as issuers in monitoring the compliance and reporting requirements for a property in accordance with the property's regulatory agreement and IRS sections 103(b)(4)(A) of the prior code, IRS sections 142 and 42 and HUD's new "uncoupling" requirements.

HUD is now delegating compliance monitoring requirements on some programs particularly Section 236 to local and state issuers for annual physical inspections, annual financial reviews, and annual property reviews.

State and local bond issuers typically require quarterly, semi-annual or annual tenant income certifications.  The owner is required to complete and maintain on file income certifications from each low or moderate income person, dated immediately prior to the initial occupancy of the property.

If an owner fails to properly maintain accurate tenant income certifications, it may cause the tax-exempt bonds for the project to lose their tax-exempt status which may cause the issuer to incur litigation by the bond holders and a damaged reputation in the marketplace.  A non-compliant property will also hamper an owner's possible exit strategy for that property.  The reason is because a prospective buyer will not want to assume a potential liability position with a new acquisition.

Accordingly, an owner with a property having low income housing tax credits has the burden of equal if not greater adherence to compliance requirements.  A property with poor compliance controls risks the filing of IRS form 8823 and the possible loss of tax credits or the possible recapture of tax credits.

At Van Patten & Company, our approach is to create a framework of detailed procedures for close monitoring of the specific income and rent restrictions required by each program.  We act as an independent monitoring agent for the often confusing area of compliance.  A list of services includes:

• Initial monitoring review
• On-going monitoring
• Pre-occupancy advisement
• One-time compliance reviews
• Annual compliance reviews
• Filing of reports according to the program requirements
• Annual financial review (as required)
• Annual physical inspection (as required)
• Annual property review (as required)
• Training
• Compliance Materials
• Periodic inspection of site files

For state and local issuers, Van Patten & Company is qualified to act as an "Authorized Delegate".  Mr. Jeff Van Patten, the principal of Van Patten & Company, holds the Certified Credit Compliance Professional (CCCP) designation.

Owners and management companies rely on our expertise to ensure that their properties meet required compliance standards which substantially  reduces the risk of penalties.  Let us put our experience to work for you.