A Quick Guide to Preparing FDIC AHP Annual Reports Prepared by Affordable Housing Connections, Inc.

The order of preparation of documents is: The Tenant Consent Form The 3rd Party Verification (recommended forms can be found online at http://www.mnhousing.gov/) Tenant Income Certification Report Part B, then Report Part A Owner’s Certification of Program Compliance

Tenant Release and Consent

Tenant Release and Consent form can be found on the AHC Web site

In order to collect 3rd party verification and other personal information, each adult member of the household must first sign a Tenant Release and Consent. This form needs to be included as part of each household file and renewed annually.

Annual Report Preparing 3rd Party Verifications FDIC AHP

Income Verification To determine whether a tenant is eligible, an owner must compare the tenant’s anticipated annual (gross) Income for the next 12 months to the income limits for the appropriate household size. Household annual income includes employment or earned income of all adult members, most benefits and periodic payments, and income from assets.

FDIC 3rd Party Verification forms Employment Verification Telephone Verification Asset Verification Includes: Checking Accounts Savings Accounts Certificates of Deposit Trusts Property Recommended verification forms can be found on the following Web page: http://www.mnhousing.gov/wcs/Satellite?c=Page&cid=1358905290806&pagename=External%2FPage%2FEXTStandardLayout

See AHC Web site for additional pages…

A Guide for Determining Annual Income Appendix C can be found on the FDIC Property Owner’s Manual Web page: http://www.fdic.gov/buying/owned/affordable/affordable/manuals/owner/

Tenant Income Certification (TIC) FDIC AHP

Blank Tenant Income Certification forms can be found on the AHC Web site:

Names of all tenants written here (If more, attach list) Choose applicable Choose applicable VLI – very low income LI – low income OI – over income Choose the total # of people in the unit Income sources are put in the correct category. The letters correspond to the household members. If more room is needed, add separate sheets, and identify each separate household member with their letter. All adults in the household must must sign and date the TIC.

List of Assets (the letter corresponds to each household Income from assets is the total cash value multiplied by the interest rate. (For example: George receives .001% interest on the balance in his savings account. $596.32 X .001 = $.596, rounded to $.60) List of Assets (the letter corresponds to each household Member’s assets. In this case, all Assets belong to the head of household, George Langley) (Imputed income is calculated only if the total Net Value of Assets is more than $5,000.)

carried over from page 1 of the TIC Check income level carried over from page 1 of the TIC Owner or authorized agent (Management Company) should sign on the same day or after than the tenant(s). Contract Rent as stated on lease Original lease date Income limits found on annual rent and income limits tables published on the AHC Web site.

Tenant Income Certification Preparation Hints TICs should be signed first by the tenant, then by the management representative on the same day or later, NEVER BEFORE the tenant Fill out all gray cells in the TIC. Cells outlined in red will auto fill. Never black out any entry (or white it out) – it must be crossed off so that it is still legible, and with the preparer’s initials and date close to the correction. Example: Albert AJH 03-02-14

Annual Report, Report B FDIC AHP

Blank Annual Report forms can be found on the AHC Web site (customized report forms can be found in your secure folder):

FDIC Summary Report, Part B This report, along with Report Part A, are to be filled out AFTER all preliminary documentation has been completed, such as 3rd party verifications of Income and Assets, and information from the Tenant Income Certification. It derives its information from these documents. FDIC Summary Report, Part B

Rent and Income limits are sent to Property managers each year. The Applicable limits should be typed into These boxes

Fill these cells with the actual total number of set-aside units including how many are very low income, and how many are low income. The “Required” cells are prefilled and the “% Required” will automatically calculate when the first fields are filled in.

The Columns in the Report body are labeled as to what they should include. The information below needs to be entered for all units in the project. For Units NOT included in the set-aside (or units that are classified “Unrestricted” do not include Gross Income, Monthly Unit Rent, or Date of Last Income Certification. Column A Building Address Column B Unit # Column C Tenant name (or indicate if the unit is VACANT) Column D Number of Bedrooms Column E Number of Persons Column F Original Date of Lease (should match Lease date on TIC) OR Move out Date Column G Type of Unit (select the following from the drop down list: VLI, LI, O-LI or U- Unrestricted)(should match TIC) Column H Tenant’s Annual Gross Income (should match TIC) Column I Maximum Annual Eligible Income (fills automatically from the Rent & Income Limits sheet) Income Eligible Tenant? If the actual income is under the maximum income, the column has “Y” for yes Column J Monthly Unit Rent (should match TIC) Column K Maximum AHP Rent (fills automatically from the Rent & Income Limits sheet) Rent Within Allowed Limit (If the actual rent is less than the maximum allowed rent, the column has “Y” for yes Column L Date of Last Income Certification (should match Certification date on TIC)

Annual Report, Report A FDIC AHP

Type in the date report submitted

Fill in the shaded boxes with actual numbers from Report B Fill in the shaded boxes with actual numbers from Report B. (Columns will total where formula “#DIV/0!” appears.)

Owner’s Certification of Program Compliance Form FDIC AHP

This form needs to be filled out, and signed by the property owner as part of each FDIC Annual Report

Questions? Naomi Hrncir, Program Coordinator Affordable Housing Connections, Inc 651-222-8319 naomi@ahcinc.net