FHA Single Family Housing Policy Handbook 4000.1, Part V — b. Monitoring of HUD Homes Participants (03/14/2016)

FHA Single Family Housing Policy Handbook 4000.1, Part V — b. Monitoring of HUD Homes Participants (03/14/2016)

b. Monitoring of HUD Homes Participants (03/14/2016) FHA’s review and monitoring activity will include a review of the AHPP and verification that HUD Homes purchased at a discount of 10 percent or greater are sold to persons at or below the applicable median income. FHA will review and monitor the program participant’s Individual Property File and Net Development Costs (NDC). The NDCs are used to review program compliance and profit margins. FHA will also monitor to ensure that savings under the HUD Homes program are passed on to Low- to Moderate-Income Borrowers. FHA may request access to properties under development or otherwise a part of the nonprofit agency’s AHP. Additional Documentation Required for Review The Governmental Entity or HUD-approved Nonprofit must have the Individual Property File and the following additional documentation available for FHA staff completing a review: • bank statements and monthly reconciliations for the last two years; • proof of payment documentation for the last two years; • a current financial statement and evidence of funding sources; • rental payment history and evidence of funding sources; • general ledger entries for the last two years; • contractor licenses and qualifications records; • a Marketing Plan and evidence of marketing efforts; • an AHPP; and • a QC Plan and monitoring reports.

Source: FHA Single Family Housing Policy Handbook 4000.1, Part V — b. Monitoring of HUD Homes Participants (03/14/2016) · source URL · snapshot 8c03836f77f317e1