We understand that Operator financial submissions (both quarterly and annual) are generally not required to be audited, but what criteria does HUD use to ensure when the regulatory submission requirement has been met?
An Operator is considered to be in compliance with the Accountability Rule and their financial submission requirements once they have provided their Lender/Servicer with their financial data each quarter (and for the fiscal year end). Operator financial data must be provided to the Lender/Servicer on a quarterly and fiscal-year-to-date basis no later than 30 days following the close of the operator’s fiscal quarter for the first three quarters of the fiscal year, and no later than 60 days following close of the operator’s fiscal year. Data must be received within the aforementioned timeframe to be considered in compliance with the regulatory submission requirement. We encourage you to work directly with your Lender/Servicer to ensure you are providing the necessary and required information to them for each reporting period.--Aug-22
Can an Operator withdraw surplus cash from the operation of the facilities on a monthly basis?
Generally, the Operator can withdraw funds as the Operator deems appropriate, if positive working capital is demonstrated on the operator’s quarterly financial submissions. If negative working capital is demonstrated (or if the operator’s quarterly financial submission is not timely received), then the Operator may not withdraw funds until a quarterly submission demonstrates positive working capital. Additionally, funds may not be distributed if a Notice of Violation has been issued. For specific requirements, please see 24 CFR Part 232.1013 (b) (applicable to transactions for which a firm commitment was received on or after April 9, 2013). --Dec-21
Does a borrower have to complete a partial year submission of their annual financial statements if they close their Section 232 loan shortly before their fiscal year end?
During the normal course of business, situations may arise for which a borrower is responsible for submitting financial statements with a reporting period of less than 12 months. Auditors refer to these as “stub” period financial statements. If the stub period is equal to or less than 90 days, HUD allows the borrower to defer reporting, and to add the stub period to the next full year financial statements (e.g. the borrower would submit financial statements covering up to 15 months). This procedure is known as a deferment of the reporting period.
A deferment is different from a waiver in that the financial submission requirement is not waived, but the timing of the submission is deferred to a later date. HUD regularly approves the deferment of stub period reporting as part of refinances, involving a change of ownership entity and new project development, thus ensuring that the borrowers are not flagged as being overdue.
The borrower's coordinator must submit this request on-line under the "Select An Option Menu, Waiver" in FASSUB on the REAC Secure Systems website located at /program_offices/public_indian_housing/reac/online. --Dec-19
Our mortgage was paid off. What is the procedure for getting my Regulatory Agreement released?
All requests for releases of Regulatory Agreements for Nursing Homes, Board and Care and Assisted-Living Facilities must be sent to 232RegReleases@hud.gov for processing. The request must include: 1. The FHA Project Name and Number in the subject line. 2. A copy of the recorded regulatory agreement(s) and any amendments. Please ensure that the recording stamp(s), dates and signatures are legible. 3. Title report, policy or commitment 4. Submitter's contact information including an email address and a physical mailing address for sending of the hard copy releases. 5. Written confirmation of the mortgage insurance termination. If submitting a form HUD-9807-ORCF, the bottom "for HUD Use Only" section must reflect the cancellation of the HUD insurance endorsement and must have been signed by a designated HUD Official. Unsigned copies will not be accepted. --Aug-23
What documentation is required and how do I notify HUD if controlling participants are changing in my 232 Facility's organization? How do I determine what type of CHOP (formerly TPA) to submit?
What documentation is required and how do I notify HUD if controlling participants are changing in my 232 Facility's organization? How do I determine what type of CHOP (formerly TPA) to submit? --Aug-23
Can ORCF grant waivers for FHA accessibility repairs when identified in a 10-year PCNA Report?
No. ORCF is not in a position to waive statutory and regulatory accessibility provisions, and; ORCF does not conduct plan reviews under ADA, or the Fair Housing Act (Act). See 42 U.S.C.§3604.3.C. The Needs Assessor, as part of their PCNA Report, will identify and recommend repairs or modifications that address all applicable accessibility deficiencies, and list those items as Critical or Non-critical repairs. Fair Housing Accessibility FIRST is an initiative sponsored by HUD designed to promote compliance and provide guidance with the Fair Housing Act. The Borrower and Needs Assessor can contact HUD’s Fair Housing Accessibility FIRST, to determine if the accessibility item(s) of concern are covered under the Act. You can visit their website at: https://www.hud.gov/program_offices/fair_housing_equal_opp/accessibility_first_home In addition, the Fair Housing program office provides the following information: • A toll-free information line for technical guidance and support.
• Comprehensive and detailed instructions.
• Helpful online web resources.
• HUD Approved Safe Harbors.
• Accessibility Laws and Regulations.
• Local FHEO contact information. --Aug-23