1. Multi-Family Housing Portfolio Mgmt. Update
Presented by Janet Stouder
Multi-Family Housing Portfolio Mgmt. Update
Council for Affordable and Rural Housing

2. Agenda for Discussion Status of Rental Assistance / Vouchers
Performance Status
Unnumbered Letters Issued relating to Portfolio Management Issues
Regulation Update
HB Chapter 4 - Financial Management Overview
Automation Initiatives

3. Status of Rental Assistance / Vouchers
Fully expect to fund all RA renewals & Vouchers
RA Obligation Tool continues to be performing well
Improper Payments Elimination And Recovery Improvement (IPERIA)
Currently Reviewing FY18
Review of documentation and calculation of Rental Assistance
Randomly selected tenant certs
Letters sent to Mgmt in May
FY 16 Rate – 1.1%
FY 17 Rate – 1.4%

4. PERFORMANCE STATUS National Receivership Prop. Gov. Owned Properties 12
Gov. Owned Properties 1
Delinquency
1.7%
Vacancy – Section 515
6.08%
Proposed Budget
Due Rec %
14, ,
Actual Budgets
13, ,
Annual Inspection
Due Compl. % 2,
Supervisory Visits
4, ,
AS of May 31, 2018

5. Recently Issued Unnumbered Letters/ Administrative Notice
6/13/18- Income Limits
5/30/18 - Non-Profit Asset Management Fee
05/11/18 – FY 15 Management Control Review for MFH Sec 515 RRH & Sec 514/516 Off-Farm Labor Housing Servicing
Result of MCR Teams review
04/20/ Management Control Review for MFH Sec 514 On-Farm Labor Housing Servicing
4/06/18 – Results of MFH Annual Occupancy Report

6. Recently Issued Unnumbered Letters/ Administrative Notice (continued)
02/27/18 – Hosting the 2018 Summer Meals Program
Approximately 15.3 Million or 21% of school age children are in families living in poverty.
These children might not have access to healthy meals during the summer when school is out. Sign up to host Summer Meals
01/24/18 – MFH Financial Reporting Requirements for FY17
Procedure Notice for FY 18 Management Fee Increase

7. Unnumbered Letters (In Process)
Updated and Re-Issue of 04/28/17 – Allowable Expenses in MFH Properties
Issued due to recent OIG Audit requirement
Re-issue of 12/28/16 – Management of Loan Payoffs in MFH Properties
Estimate Pay-off based on Promissory Note (as long as principal is being paid at same rate)
Options
Reamortize loan to existing Promissory Note term
Request to Ream Lite – to extend the terms up to 20 years
Apply to Prepay Loan
Updated Rent Incentive UL
Flexibility for Owners/Management
With or Without a SWOP
H2A Farm Workers
Extends Farm Labor Housing (FLH) occupant eligibility to H-2A temporary agricultural workers (H-2A worker).

8. Regulation Update HB-3-3560 Chapter 6 – Project Suitability
Portfolio and Property Assessment
Incorporating old guidance on Dynamic Servicing
Determine needed course of action into the agency's overall guidance
Procedure Notice No. 513 dated June 4, 2018
HB Chapter 9: Unauthorized Assistance/
HB Chapter 10: Compliance Violations (pending)
Civil Monetary Penalties
- Violation of regulations or agreements
Submitting false information or certifications
Failing to timely submit information
Failing to maintain real property
Failing to comply with civil rights and regulations
Finishing updating Handbook guidance

9. Regulation Update HB- 2 -3560 Chapter 4 Financial Management
Financial Reporting – updating handbook guidance
Regs aligned with Dept of Housing & Urban Development (HUD)
Using HUD Audit format (less the tenant file review)
Elimination Agreed Upon Procedures
Changing to $$ vs. number of units for audits
Risked based threshold

10. For-Profit / Limited Profit
Regulation Update
HB Chapter 4
For-Profit / Limited Profit
Current
New Financial Rule
Per property
Based on size of property
1-15 Units
RD Forms & Borrower Cert
16-23 units
RD Forms, Borrower Cert & AUP
24 + units
RD Forms Borrower Cert & AUP & Audit*
Per Borrower
Based on Total Financial Assistance
For-Profit / Limited Profit
Less than $500,000
RD Forms & Borrower Certification
$500,000 or greater
RD Forms, Borrower Certification & Audit

11. State & Local Governments, Indian Tribes & Nonprofit Orgs
Regulation Update
HB Chapter 4
State & Local Governments, Indian Tribes & Nonprofit Orgs
Current
New Financial Rule
Per property
RD Forms & Borrower Cert
Audit is in accordance with OMB Circular A-133 and submitted to the Agency as part of the Financial Reporting Requirements.
Per Borrower
Based on Total Financial Assistance
Less than $750,000
RD Forms & Borrower Certification
$750,000 or greater
RD Forms, Borrower Certification & Single Audit in accordance with 2 CFR part 200 subpart F

12. Regulation Update HB- 2 -3560 Chapter 4
Combined Federal Financial Assistances
A combination of any of the following sources:
Principal balance at the beginning of the fiscal year of all USDA Mortgage, a mortgage insured by the Federal Housing Administration (FHA) or HUD- held mortgages and other Government insured loans);
Any USDA Rental Assistance or Project based Section 8 assistance received during the fiscal year;
Interest reduction payments received during the year (interest subsidy);
Federal grant funds received during the year and/or;
Outstanding principal balance at the beginning of the fiscal year of an existing USDA Section 538 Guaranteed Rural Rental Housing loan.

13. Transition; per UL dated January 24, 2018 FY 17 - No change -
Regulation Update
HB Chapter 4
Transition; per UL dated January 24, 2018
FY No change -
Borrower can opt out of providing an AUP.
FY OPTIONAL in FY 18
FY 19 – Mandatory
Budgets and Year ends will be submitted in accordance with the new regulations

14. AUTOMATION PROJECTS
For past three years – using IPAD for completing Supervisory Visits & Physical Inspections
We have just ordered over 300 new 2/1 Devices to replace iPad’s
Enhanced connectivity and compatibility
Start to be issued to Field in next 60 days
MINC – Update FY18 Income Limits
Working towards Electronic Customer Files (ECF)
Held 7 Internal Webinar Trainings
Scanning essential documents and current servicing file
MFIS RA Obligation Monitoring Tool
Ensure Reasonableness of Rental Assistance Estimates
GAO recommendation

15. AUTOMATION PROJECTS Enterprise Income Verification (EIV)
FY 18 Appropriation Act allows RHS access
Working with HUD/HHS on data sharing requirements
LSS – Borrower Financial Reporting
Held Rapid Improvement Meeting September 2017 in St Louis
Completed scopes of work/business rules for Top 5 identified improvements.
Customer Portal, Validation Checks, Internal/External Training, MFIS
Submitted Mission Needs document to IT on Customer Portal, awaiting bid
Held 2 webinars (9/17 Proposed Budgets & 4/18 on Actuals) over 300 trained
Implemented several data integrity checks in MFIS
Core Group to meet and brief new leadership on project by September 2018

16. Questions and
Answers

17. MFH Portfolio Management Division 202-720-9728 www.rd.usda.gov
Janet Stouder
Rural Development
MFH Portfolio Management Division