Section 236 Program Year End Requirements Excess Income Reporting Annual Certification of Use (ACU) (for Retained Excess Income) Annual Certification of Accuracy (ACA) Information on Interim Certification of Use (ICU) Revised: February 6th, 2017 ©2017 MassHousing Revised by: Colleen Kelley and LaVergne Randolph 1

Gathering the Annual Certifications of Use Section 24 of the Code of Federal Regulations, Part 236, requires that each development approved to retain Excess Income must submit a report each year indicating the amount of Excess Income retained and the purposes to which the funds were applied. The reporting cycle means January to December.. 2

Gathering the Annual Certifications of Use The 236 subsidized developments in the MassHousing-financed portfolio must file an Excess Income report, HUD form 93104, to HUD each month through Pay.gov. Those properties who have permission to retain Excess Income and are required to submit an Annual Certification of Use (ACU) form regardless of whether any Excess Income was generated and retained. The remaining developments did not request permission to retain excess income, are required to submit an Annual Certification of Accuracy (ACA) form. 3

Gathering the Annual Certifications of Accuracy The developments that did not request permission to retain will be required by MassHousing to submit a modified version of the ACU i.e., an Annual Certification of Accuracy (ACA), in lieu of the requirement for faxing the 93104 forms to MassHousing each month. The ACA eform requires the owner/manager to certify that no excess income has been collected and retained during the prior annual reporting period. 4

Gathering the Annual Certifications of Accuracy The Boston HUD Office has asked that the following language be added to the ACU for those that do not have permission to retain Excess Income: “Annual Certification of Accuracy: The noted development has not requested permission to retain Excess Income and has not retained any Excess Income for the period identified above. The owner, or their management agent, asserts that the information displayed above is true and accurate.” They have also asked that the following statement be added to all ACUs & ACAs: “The remission of Excess Income and the filing of timely reports is a continuing contractual obligation of the owner and HUD may withhold regulatory approval where that obligation has not been satisfied or take additional action they deem necessary to ensure compliance.” 5

Annual Certifications of Use/Accuracy Made Easy HUD has a prescribed an ACU form for reporting the use of Excess Income. We have taken that form and converted it into a multi-purpose electronic form, including the function for the Annual Certification of Use, the Annual Certification of Accuracy and the fax transmittal sheet. We recommend saving the below link in your bookmarks for future use. Begin by going to the following website: https://www.masshousing.com/portal/server.pt/gateway/PTARGS_0_210_2778_0_0_18/236faxACU_form.html 6

The eform will automatically enter the amounts submitted to Pay. gov The eform will automatically enter the amounts submitted to Pay.gov. The annual total will also be calculated and entered. The approved uses have been pre-populated with the uses approved by HUD for your property. 7

What if you do not agree with the monthly amount or the approved use? The amount retained each month is based on the amounts you reported to HUD via Pay.gov monthly submissions. If you do not agree with any of the monthly amounts, please contact LaVergne Randolph at (lrandolph@masshousing.com). The approved uses are based on your written request to MassHousing and approved by HUD. Please review your original or revised request. If your records do not agree with MassHousing records, please call LaVergne Randolph at 617-854-1167 (LRandolph@masshousing.com). 8

HUD Reports extracted from Pay.gov

Data Flow Chart – Monthly Process MH Staff reviews the data for missing months, Proj #, dates, duplicates, etc. Data originates at Pay.gov as owner/manager enters project information HUD sends an extract to MassHousing listing all of the Excess Income reports and amounts to date From the review above, MH Staff creates an Interim CU which is posted on the MH Website Owner/Managers review their ICU & submit corrected reports through Pay.gov if necessary The Process Starts Here 11/19/2010 10

Year End Cycle Managers are notified by e-mail that the ACU eforms are ready to review & signature Manager downloads the year-end ACU & faxes the signed ACU to MH, along with the 12 monthly 93104 EI Reports At year-end, a 12 month ACU is prepared from the HUD reports from Pay.gov MH Staff bundle the ACU forms and send a closeout letter to HUD Year-end process starts here 11/19/2010 11

Faxing your completed ACU form Go to: https://www.masshousing.com/portal/server.pt/gateway/PTARGS_0_1_2778_0_0_18/236faxACU_form.html You will probably want to save the link above in your bookmarks so you do not have to refer back to this presentation in the future. NOTE for 2016 ACUs: the twelve monthly 93104 forms printed from Pay.Gov must be attached to the ACU/ACA eform when you fax it to MassHousing.

This link is found on MassHousing’s portal under 236 Excess Income: https://www.masshousingrental.com/portal/server.pt?open=514&objID=13503&parentname=CommunityPage&parentid=6&mode=2&in_hi_userid=12725&cached=true

1. This is your ACU fax transmittal coversheet 1. This is your ACU fax transmittal coversheet. Please fax to 617-722-0695 NOTE: this is for the 2016 ACU to be faxed to MassHousing in 2017 For your convenience, we have made this PowerPoint presentation available to you online via the link Completed Form In addition to the fax page and signature page eforms, you must include the twelve monthly 93104 reports from Pay.gov in your fax to MassHousing. 14

2. Verify retention amount for each month as well as the annual total. Then confirm the purposes for which HUD has already approved for you to retain Excess Income. 15

Form is not valid unless signed here. Print 3. Please print the form (two pages) and then have the reviewing mortgagor official (owner or manager) sign on the line. Form is not valid unless signed here. This document should print as 2 pages. 16

In addition to the two ACU eforms above, you must include the twelve The form is not valid unless signed. 4. This is your ACU fax transmittal coversheet. Please fax to 617-722-0695 NOTE: this is for the 2016 ACU to be faxed to MassHousing in 2017, In addition to the two ACU eforms above, you must include the twelve monthly 93104 reports from Pay.gov in your fax to MassHousing. 17

Completed ACU eform for EI retainers/SAMPLE 02/15/2012 18

Completed ACA eform for EI Non-remitters/SAMPLE

Where to Find Information This presentation as well as the various forms necessary for reporting are available for your convenience online at www.MassHousingRental.com We encourage you to take advantage of this presentation as a training tool for your staff when you experience personnel changes. A WebEx version is being prepared and will be available shortly. 20

Interim Certification of Use We have found that some reports are submitted to Pay.Gov with errors or omissions that must be corrected. So that we can reduce the year-end reporting issues, we created an Interim Certification of Use (ICU) that can be accessed on the MassHousing Website. The ICU is designed to keep you, the owner / agent informed of the Pay.Gov reporting and encourage you to revise reports, if needed, to correct errors and omissions. The ICU uses updated information from Pay.Gov and is accessible anytime.

Interim Certification of Use (ICU) eform Check it any time! During the course of the calendar year, you will be able to access the Interim Certification of Use (ICU) which will be updated by Subsidy Administration from HUD’s records. This can be helpful to ensure that HUD’s records of submitted reports and retained amounts match your records. Early detection of discrepancies will allow sufficient time to correct records before year-end.

Interim Certification of Use (ICU) eform Check it any time! To access the ICU eform, use the following link: https://www.masshousing.com/portal/server.pt/gateway/PTARGS_0_2_10995_0_0_18/236_INTERIM_CERT_form.html Unlike the ACU eform, you will only need to select the name of your development to create the ICU eform.

from the dropdown table Accessing the ICU Form Go to this URL to access the ICU Form: https://www.masshousing.com/portal/server.pt/gateway/PTARGS_0_2_10995_0_0_18/236_INTERIM_CERT_form.html Select your property from the dropdown table

“drop down” table of developments Once you have selected your property, click the “Submit” button

Completed ICU Form – No certification or signature required Check the report dates and amounts with your records

Summary You are now ready to put the new methods described into routine practice in your office. We hope this presentation was informative. Should you need further assistance, please contact LaVergne Randolph: LRandolph@masshousing.com