Previous Participation Certifications Form HUD-2530/APPS Submissions Handbook Chapter 2.5FF

Purpose To assure that participants in ORCF projects are responsible with regard to their participation in other governmental housing transactions

Filing the Previous Participation Certification Electronic APPS (Active Partners Participation System) Submission OR Paper Submission + BPRS (Business Partners Registration System) Registration Participants do NOT need to complete the Previous Participation section of the Consolidated Certifications

Who must File a 2530/APPS Submission? Borrower Operator Master Tenant Management Agent General Contractor Principals of These Entities

Principals for 2530/APPS Purposes

Organization Chart Example

223(a)(7) Projects APPS/2530 Submissions are only required on 223(a)(7) projects if principals have not previously been approved.

Organization Charts Organization charts are a visual representation of the ownership structure of an organization An organization chart must be submitted for each entity that submits an APPS or 2530 submission The organization chart must match the APPS or 2530 submission

Organization Charts (continued) The organization chart must include the following: Clearly show all tiers of the ownership structure Show all participants, not just those the Lender considers to be principals Show percentages of ownership and role in the entity (e.g., Limited Partner, General Partner, Managing Member, etc.)

Organization Charts (continued) Include a natural person/people, and not just entities Each entity must be shown on a separate organization chart (e.g., Borrower, Operator, Management Agent, Master Tenant, etc.) The key is to provide a clear, succinct chart that someone unfamiliar with the transaction can quickly understand.

APPS Submissions

Filing an APPS Submission Follow instructions on the HUD website for submitting an APPS Submission: http://portal.hud.gov/hudportal/HUD?src=/program_offices/housing/mfh/apps/appsmfhm Include the signed signature pages in the Firm Application ORCF staff need the Submission ID numbers to review and approve the submissions

Paper 2530 Submissions

Page 1: What to Review Block 7: Do the participants match the organization chart? Are all participants listed in Block 7 also on the signature page? Have principals signed the submission? If certifications have been struck through, are the strikethroughs initialed? Have you included a signed letter of explanation?

Schedule A: What to Review Column 1: Are all principals shown in Block 7 listed? Column 4: Are any defaults or foreclosures listed? Column 5: If applicable, was the default or foreclosure during the principal’s participation? Column 6: Are there any projects listed with REAC scores below 30?

Key Items to Review on 2530 Form

BPRS Registration

BPRS Registration The lender must check each principal listed on the Form HUD-2530 to assure that they are registered in BPRS A principal may not be registered in BPRS even though they have participated in previous HUD projects, so it is important to check each time you submit a 2530 Lenders are NOT required to check BPRS registration for APPS submissions

Flags in the APPS System

Flags in the APPS System Flags are placed on participants in the APPS system for things such as: Failure to File Financial Statements REAC Scores below 30 Violations of Business Agreement Claims/Defaults

Flags in the APPS System (continued) When there is a flag in the APPS system there are two ways a participant can be approved: Reason for the flag is remedied (e.g., missing Annual Financial Statements are filed or subsequent acceptable REAC score) Lender researches the flag and provides convincing documentation explaining the flag and why approval of the participant is warranted