| (a) The Department requires reports to be submitted
electronically through the Department's web-based Compliance Monitoring
and Tracking System (CMTS) and in the format prescribed by the Department.
The Electronic Compliance Reporting Filing Agreement and the Owner's
Designation of Administrator of Accounts forms must be filed no later
than September 1st of the year following the award. The Department
will provide general instruction regarding the electronic transfer
of data. Under special circumstances, the Department may, at its discretion,
waive the online reporting requirements where a hardship can be demonstrated.
In the absence of a written waiver, all Developments are required
to submit reports online.
(b) Each Development is required to submit an Annual
Owner's Compliance Report (AOCR). Depending on the Development, some
or all of the Report must be submitted. The first AOCR is due the
second year following the award in accordance with the deadlines set
out in subsection (c) of this section. For example, if a Development
is awarded funds in calendar year 2007, the first report is due in
2009. The AOCR is comprised of five sections:
(1) Part A "Owner's Certification of Program Compliance."
All Development Owners must annually certify to compliance with applicable
program requirements. The AOCR Part A shall include answers to all
questions required by Treasury Regulation 1.42-5(b)(1) or the applicable
program rules. In addition, Owners are required to report on the race
and ethnicity, family composition, age, income, use of rental assistance,
disability status, and monthly rental payments of individuals and
families applying for and receiving assistance. HTC Developments during
the Compliance Period will also be required to provide the name and
mailing address of the syndicator in the Annual Owner's Compliance
Report;
(2) Part B "Unit Status Report." All Developments must
annually report the information related to individual household income,
rent, certification dates and other necessary data to ensure compliance
with applicable program regulations;
(3) Part C "Housing for Persons with Disabilities."
The Department is required to establish a system that requires Owners
of state or federally assisted housing Developments with 20 or more
housing Units to report information regarding housing Units designed
for persons with disabilities. The questions on Part C satisfy this
requirement;
(4) Part D "Owner's Financial Certification." Developments
funded by the Department must annually provide the data requested
in the Owner's Financial Certification; and
(5) Part E "Form 8703." Tax exempt bond properties
must file Form 8703 each calendar year of the qualified project period.
The form is due to the IRS by March 31 after the close of the calendar
year for which the certification is made. The Department requires
Tax Exempt Bond Development Owners to submit a copy of the filed Form
8703 for the preceding calendar year.
(c) Parts A, B, C and E of the Annual Owner's Compliance
Report must be provided to the Department no later than the last day
in April of each year, reporting data current as of December 31st
of the previous year (the reporting year). Part D, "Owner's Financial
Certification," which includes the current audited financial statements
and income and expenses of the Development for the prior year, must
be submitted to the Department no later than the last day of April,
each year.
(d) Any Development for which the AOCR, Part A, "Owner's
Certification of Program Compliance," is not received or is received
past the due date will be considered not in compliance with this section.
If Part A is incomplete, improperly completed, or is not submitted
by the Development Owner, it will be considered not received and not
in compliance with this section. The Department will report to the
IRS on Form 8823, Low-Income Housing Credit Agencies Report of Noncompliance
or Building Disposition, any HTC Development that fails to comply
with this requirement.
(e) Department staff will review Part A of the AOCR
for compliance with the requirements of the appropriate program. If
it appears that the Development is not in compliance based upon the
report, the Owner will be given written notice and provided a corrective
action period to clarify or correct the report. If the Owner does
not respond to the notice, the report will be subject to the sanctions
listed in subsections (f) and (g) of this section.
(f) If any required section, or sections (Parts A,
B, C, D and/or E) of the report are not received on or before the
deadline for submission specified in subsection (c) of this section,
a notice of noncompliance will be sent to the Owner, specifying a
corrective action deadline. If the report is not received on or before
the corrective action deadline, the Department shall:
(1) For all HTC Developments, issue Form 8823 notifying
the IRS of the violation; and
(2) For all Developments, score the noncompliance in
accordance with §10.621 of this chapter (relating to Material
Noncompliance Methodology).
(g) The Department may assess and enforce the sanctions
described in paragraphs (1) and (2) of this subsection against an
Owner who fails to submit all or any part of the AOCR on or before
the due date of each year and has multiple, consistent, and/or repeated
violations of failure to submit all or any part of the AOCR by the
due date each year:
(1) a late processing fee in the amount of $1,000;
and/or
(2) a HTC Development that fails to submit the required
AOCR for three (3) consecutive years may be reported to the IRS as
no longer in compliance and never expected to comply.
(h) Periodic Unit Status Reports. All Developments
must submit a Quarterly Unit Status report to the Department through
the Compliance Monitoring and Tracking System. Quarterly reports are
due in January, April, July, and October on the 10th day of the month.
The report must report occupancy as of the last day of the previous
month for the reporting period. For example, the report due October
10th should report occupancy as of September 30th. The first quarterly
report is due on the first quarterly reporting date after leasing
activity commences.
(i) Owners are encouraged to continuously maintain
current resident data in the Department's CMTS. Under certain circumstances,
such as in the event of a natural disaster, the Department may alter
the reporting schedule and require all Developments to provide current
occupancy data through CMTS.
(j) All rental Developments funded or administered
by the Department will be required to submit a current Unit Status
Report prior to an onsite monitoring visit.
(k) Exchange developments must submit Form 8609 with
lines 7, 8(b), 9(b), 10(a), 10(c), and 10(d) thirty (30) days after
the Department issues the executed form(s).
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