Transfer of Ownership – Financial Reporting (Zero Amounts)

This is an oldie but a goodie:

On the Multifamily Housing – News page it states:

Transfers of Ownership – Financial Reporting:

In a transfer of ownership, the old owner’s (seller’s) audit should cover the period from the beginning of the fiscal year through the day before the transfer. In most states ownership is legally transferred on the date the deed is signed. The new owner (buyer) is responsible for reporting from the date of the transfer through the end of the new owner’s fiscal year.

Under no circumstances should the seller’s audit ‘zero out’ fixed assets, cash, or reserve accounts because the seller is responsible for reporting up to the day before the transfer. For additional information, please refer to the Office of Asset Management Memorandum dated 6/22/04.

HUD has been known to archive (delete) electronic submissions – without notice – in which the amounts were zeroed out.

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